{"id":2872,"date":"2015-06-15T06:03:49","date_gmt":"2015-06-15T06:03:49","guid":{"rendered":"https:\/\/courses.candelalearning.com\/masterybusiness1xngcxmaster\/?post_type=chapter&p=2872"},"modified":"2015-07-11T06:44:36","modified_gmt":"2015-07-11T06:44:36","slug":"warranties-2","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/clinton-introbusinesswmopen\/chapter\/warranties-2\/","title":{"raw":"Reading: Warranties","rendered":"Reading: Warranties"},"content":{"raw":"

Types of Warranties<\/h2>\r\nA warranty<\/span><\/span> is a guarantee that a product meets certain standards of performance. In the United States, warranties are established by the Uniform Commercial Code (UCC)<\/span><\/span>, a system of statutes designed to make commercial transactions consistent in all fifty states. Under the UCC, a warranty is based on contract law and, as such, constitutes a binding promise. If this promise\u2014the promise that a product meets certain standards of performance\u2014isn\u2019t fulfilled, the buyer may bring a claim of product liability against the seller or maker of the promise.\r\n

Express Warranties<\/h3>\r\nAn express warranty<\/span><\/span> is created when a seller affirms that a product meets certain standards of quality, description, performance, or condition. The seller can make an express warranty in any of the following three ways:\r\n
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  1. By describing the product<\/li>\r\n\t
  2. By making a promise of fact about the product<\/li>\r\n\t
  3. By providing a model or sample of the product<\/li>\r\n<\/ol>\r\nSellers aren\u2019t obligated to make express warranties. When they do make them, it\u2019s usually made through advertisements, catalogs, and so forth, but they needn\u2019t be made in writing; they can be oral or even inferred from the seller\u2019s behavior. They\u2019re valid even if they\u2019re made by mistake.\r\n

    Implied Warranties<\/h3>\r\nThere are two types of implied warranties<\/span><\/span>\u2014that is, warranties that arise automatically out of transactions:\r\n
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    1. In making an implied warranty of merchantability<\/em>, the seller states that the product is reasonably fit for ordinary use. In selling you a ladder, for example, Ladders \u2019N\u2019 Things affirms that it satisfies any promises made on its packaging, meets average standards of quality, and should be acceptable to other users.<\/li>\r\n\t
    2. An implied warranty of fitness for a particular purpose<\/em> affirms that the product is fit for some specific use. Let\u2019s say, for example, that you had asked the manager at Ladders \u2019N\u2019 Things whether the ladder you had in mind was fit for holding a scaffolding platform for painting a house; if the manager had assured you that it was, he would have created an implied warranty of fitness for a particular purpose.<\/li>\r\n<\/ol>\r\nTable 1, \"What Warranties Promise,\" below provides a more complete overview of the different types of warranties, including more-detailed descriptions of the promises that may be entailed by each.\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
      Type of Warranty<\/th>\r\nMeans by Which the Warranty May Be Created<\/th>\r\nPromises Entailed by the Warranty<\/th>\r\n<\/tr>\r\n<\/thead>\r\n
      Express warranty<\/td>\r\nSeller confirms that product conforms to the following:\r\n
        \r\n\t
      • All statements of fact or promise made about it<\/li>\r\n\t
      • Any description of it<\/li>\r\n\t
      • Any model or sample of it<\/li>\r\n<\/ul>\r\n<\/td>\r\n
      		Product meets certain standards of quality, description, performance, or condition<\/td>\r\n<\/tr>\r\n
      Implied warranty of merchantability<\/td>\r\nLaw implies certain promises<\/td>\r\nProduct:\r\n
        \r\n\t
      • Is fit for ordinary purposes for which it\u2019s used<\/li>\r\n\t
      • Is adequately contained, packaged, and labeled<\/li>\r\n\t
      • Is of an even kind, quality, and quantity within each unit<\/li>\r\n\t
      • Conforms to any promise or statement of fact made on container or label<\/li>\r\n\t
      • Passes without objection in the trade<\/li>\r\n\t
      • Meets a fair, average, or middle range of quality<\/li>\r\n<\/ul>\r\n<\/td>\r\n<\/tr>\r\n
      Implied warranty of fitness for a particular purpose<\/td>\r\nLaw implies certain promises<\/td>\r\nProduct is fit for the purpose for which the buyer acquires it if<\/em>\r\n