1. Warranties 24.1

2. Chpt 23-Warranties A warranty is a promise or guarantee made by a seller concerning the quality or performance of goods offered for sale. It is also a statement of what the seller will do to remedy the problem if the product doesn't perform as promised. If the seller doesn't live up to the promises made in the warranty, the contract has been breached.

3. You should always be aware of the warranties that exist before you make a purchase! There are 2 types of warranties: express and implied

4. A. Express Warranties An express warranty is a statement-written, oral, or by demonstration-concerning the quality or performance of goods offered for sale that becomes a part of the bargain. ▫Ex-This TV will not need any repairs for 5 years. ▫Ex-Express warranty is created if you purchase a washing machine after you see it washing clothes in a store demonstration Express warranties are created by statements of fact. Not everything a seller says is a warranty!

5. If the seller's statement is merely an opinion or an obvious exaggeration, it is considered puffing, or sales talk, and can't be relied on. ▫Ex-A used car dealer advertising Fantastic Cars. No warranty is created

6. Sellers don't have to give written warranties. But if they do, they must: ▫Disclose all the terms in a single document ▫Be stated in easy to read language ▫Be made available to the consumer before a sale These warranty obligations don't apply to products that cost $15 or less

7. B. Implied Warranties An implied warranty is an unwritten promise, created by the law, that a product will do what it is supposed to do. Implied warranties only apply to product sold by dealers-they don't apply to goods sold by casual sellers.

8. There are 3 types of implied warranties: ▫Warranty of merchantability ▫Warranty of fitness for a particular purpose ▫Warranty of title A warranty of merchantability is an unwritten promise that the item sold is at least of average quality ▫Ex-a radio must play ▫Ex-freezer must keep food frozen

9. A warranty of fitness for a particular purpose exists when a consumer tells a seller before buying an item that it is needed for a specific purpose. Ex-you tell the salesperson you want a waterproof watch and he recommends one, which you buy. If you go swimming and water leaks into the watch, the warranty has been breached

10. A warranty of title is a seller's promise that he/she owns the item and that noone else can claim it. Something to note: if you fully examine goods before you buy, or you are given the opportunity to, the implied warranty may no longer apply to problems you should've discovered. Therefore always inspect everything, especially used cars!

11. C. Disclaimers A disclaimer is an attempt to limit the seller's responsibilities if anything goes wrong with a product. The only warranties that can be disclaimed are express warranties and the implied warranty of merchantability.

12. The implied warranty of merchantability is waived by language such as as is or with all faults. So beware of this language! If the implied warrant of M is disclaimed, it must be easily seen by the consumer. Sometimes sellers use disclaimers to limit the remedies that are available ▫Ex-the buyer's only remedy will be replacement or repair of defective parts