THE IMPORTANCE OF
WARRANTIES
PRACTICAL LIVING/VOCATIONAL
STUDIES
NINTH GRADE
CHRISTY PUCKETT/GRAVES
COUNTY HIGH SCHOOL
PL-H-3.3.1
WARRANTY:
Anagreement to be responsible if a
good or service is not as represented
EXPRESS WARRANTY
A STATEMENT OF FACT
EXPRESSED BY THE SELLER FOR
THE PURPOSE OF HAVING THE
BUYER MAKE A PURCHASE
OFTEN FOUND IN SALES
BROCHURES, CIRCULARS, AND
ADVERTISEMENTS
AN EXPRESS WARRANTY COMES ABOUT IN
ANY OF THREE WAYS:
STATEMENT OR PROMISE BY
SELLER
DESCRIPTION OF GOODS
SAMPLE OR MODEL
MAGNUSON MOSS WARRANTY ACT
FEDERAL LAW THAT PROVIDES WRITTEN
WARRANTIES MUST FULLY DISCLOSE IN
SIMPLE, READILY UNDERSTANDABLE
LANGUAGE THE TERMS AND
CONDITIONS OF THE WARRANTY
TWO TYPES OF WRITTEN
WARRANTIES
FULL: ONE IN WHICH A DEFECTIVE
PRODUCT WILL BE FIXED OR REPLACED
WITHIN A REASONABLE TIME AFTER A
COMPLAINT HAS BEEN MADE
LIMITED: WARRANTY THAT “LIMITS” ON
WHAT IS COVERED / HAS LIMITATIONS
IMPLIED WARRANTIES
BY THE NATURE OF THE TRANSACTION, OR BY
THE WARRANTIES IMPLIED BY THE ACTS OF
SURROUNDING CIRCUMSTANCES
CAN OCCUR IN 1 OF 2 WAYS
WARRANTY OF FITNESS
CREATED WHEN THE SELLER KNOWS
ABOUT A PARTICULAR PURPOSE FOR
WHICH GOODS ARE NEEDED
SELLER ADVISES THE BUYER AND
BUYER RELIES ON THE EXPERTISE
EXISTS EVEN IF SELLER IS A
NONMERCHANT
WARRANTY OF MERCHANTABILITY
GIVEN ONLY BY A MERCHANT(SOMEONE
WHO DEALS IN GOODS BEING SOLD IN
THE ORDINARY COURSE OF BUSINESS
OR HAS KNOWLEDGE OR SKILL
PERTAINING TO THE GOODS)
MERCHANT WARRANTS THAT THE
GOODS ARE MERCHANTABLE
TO BE MERCHANTABLE, GOODS
MUST:
PASS WITHOUT OBJECTION UNDER
CONTRACT DESCRIPTION
BE FIT FOR THE PURPOSE THE GOODS
WERE TO BE USED
BE ADEQUATELY CONTAINED, PACKAGED,
AND LABELED
CONFORM TO STATEMENTS MADE ON
CONTAINER OR LABEL
WARRANTY OF TITLE
WHENEVER GOODS ARE SOLD, THE
SELLER WARRANTS THAT THE TITLE
BEING CONVEYED IS GOOD
GOODS SHOULD BE DELIVERED FREE OF
ANY FINANCIAL OBLIGATIONS ABOUT
WHICH THE BUYER HAD NO KNOWLEDGE
TO EXCLUDE A WARRANTY:
FOR ANY IMPLIED WARRANTY OF
FITNESS MUST BE IN WRITING AND
CONSPICOUS
FOR A WARRANTY OF
MERCHANTABILITY, THE WORD
“MERCHANTABILITY”MUST BE USED
“AS IS” OR “WITHOUT ALL FAULTS”
ALSO EXCLUDES THE WARRANTY
REMEDIES
ASK FOR A REFUND
FIX THE DEFECT
RECEIVE A NEW PRODUCT
SUE FOR THE PURCHASE PRICE
PLUS DAMAGES