1. BUSINESS LAW AND ETHICS Chapter 19

2. WARRANTIES  EXPRESS WARRANTY  The statement of the seller in which the article sold Is warranted or guaranteed is known as an Express Warranty  IMPLIED WARRANTY  An implied warrantee is one that the seller did not make but that is imposed by the law

3. WARRANTY OF TITLE  The seller is confirming ownership of the goods and that ownership is being transferred to the buyer.

4. PRIVITY OF CONTRACT  A contract relationship  How it applies to “Breach of Warranty”  A stranger can (one who does not have a contractual relationship) sue on the theory of Breach of Warranty.

5. MANUSON-MOSS WARRANTY & FRC IMPROVEMENT ACT  This act requires that written warranties for consumer goods must meet certain requirements. The consumer must be informed of the warranty prior to the sale.

6. T TO PROVE BREACH OF WARRANTY  Only the facts of when the plaintiff has direct knowledge, or about which information can readily be learned, need to be proven.

7. QUESTION #1  Why is it important that the buyer examine the product before signing the contract?  Answer pg. : No implied warranty exists with respect to defects in goods that an examination should have revealed before making the final contract.

8. QUESTION #2  What is the relationship of Privity of Contracts?  Answer pg. 217: In the past, in common law there could be no suit for Breach of Warranty unless a Privity of Contract existed between the plaintiff and the defendant. However a “stranger” (one who does not have a contractual relationship can sue on the Theory of Breach of Warranty.

9. QUESTION #3  What is Consumer Protection?  Answer pg. 220: Laws designed to protect the parties to a contract from abuse, sharp dealing and fraud. They also strengthen legitimate business interests.

10. QUESTION #4  What is TILA?  Answer pg. 222: The Federal Truth in Lending Act.