Helix BBQ: Contract Law- Contract Content and Meaning of Terms - Express and Implied Warranties under the UCC with Explanations

 Which of the following representations is NOT included in the UCC’s implied warranty of title?

B.The title to the goods will be audited prior to delivery.

Solution: The correct answer is B.

Answer option B is correct. A sales contract for goods under the UCC contains an implied warranty by the seller that: the title conveyed is a valid one; the transfer of title is rightful; and the goods are free of any known encumbrances. A merchant seller who regularly deals in goods of the kind sold additionally warrants that the goods shall be delivered free of the rightful claim of any third person by way of infringement or the like.

Under the UCC, what, if anything, can a retailer of used exercise equipment do to disclaim an implied warranty of fitness?

A.The retailer could state in the contract that the equipment is being sold “as is” or “with all faults.”

Solution: The correct answer is A.

Answer option A is correct. An implied warranty of fitness may be disclaimed through a conspicuous writing, with no special words being required. The warranty may be disclaimed through the language “as is” or “with all faults” in a conspicuous writing.

Which of the following is NOT a requirement for the creation of an implied warranty of fitness?

C.The seller is a merchant.

Solution: The correct answer is C.

Answer option C is correct. Unlike an implied warranty of merchantability, an implied warranty of fitness may arise where the seller is not a merchant.

A bookstore owner brought a pitcher of lemonade with her to work, for personal consumption. A customer saw the lemonade and offered the owner $1 for a glass. The owner accepted. The customer was unhappy with the taste of the lemonade.

Under the UCC, does the customer have a potential claim for breach of warranty?

B. No, because the owner was not a merchant with respect to the lemonade.

Solution: The correct answer is B.

Answer option B is correct. Under the UCC, sales of goods involving a seller who is a merchant create an implied warranty of merchantability. A merchant is a person who deals in goods of the kind involved in the transaction. In this scenario, the bookstore owner is not a lemonade merchant.

Under the UCC, which of the following generally would NOT create an express warranty?

D.The seller praising the quality of the goods.

Solution: The correct answer is D.

Answer option D is correct. The seller’s praise for the goods, or expressions of personal opinion about the value or quality of the goods, does not alone create an express warranty.