Chapter 21 Warranties and Product Liability
• Warranty, which is an assurance provided in a sales contract
• Negligence, which refers to unreasonable conduct by the defendant
• Strict liability, which prohibits defective products whether the defendant acted reasonably or not.
A warranty is a contractual assurance that goods will meet certain standards.
An express warranty is one that the seller creates with his words or actions.
The UCC establishes that the seller may create an express warranty in three ways: (1) with an affirmation of fact or a promise; (2) with a description of the goods; or (3) with a sample or model. In addition, the buyer must demonstrate that what the seller said or did was the basis of the bargain.
A statement is more likely to be an affirmation of fact if:
• It is specific and can be proven true or false. Suppose the brochures of a home builder promise to meet “the strictest building codes.” Since there is a code on file, the builder's work can be compared to it, and his promise is binding.
• It is written. An oral promise can create an express warranty. But promises in brochures are more likely to be taken seriously. Statements in a written contract are the likeliest of all to create a binding warranty.
• Defects are not obvious. If a used car salesman tells you that a car is rust free, when the driver's door is pockmarked with rust, you should not take the statement seriously— since a court will not, either.
• Seller has greater expertise. If the seller knows more than the buyer, his statements will be more influential with buyer and court alike. If your architect assures you that the new porch will be warm in winter, the law recognizes that you will naturally rely on her expertise.
Any description of the goods can create an express warranty
Any sample or model can create an express warranty
The seller's conduct must have been