Business Law 2

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1) What factors determine whether a seller’s or lessor’s statement constitutes an express warranty or mere “puffing”?

Under the UCC, express warranties arise when a seller or lessor indicates any of the following: an affirmation or promise of fact, a description of the goods, or a sample shown as conforming to the contract of goods. Express warranties are created with only statements of fact, whereas statements that relates to the supposed value or worth of the goods, or statements of opinion or recommendations of the goods are considered “puffery” and no warranty is created.

2) What implied warranties arise under the UCC?

Under the UCC, implied warranties include the implied warranty of merchantability (which automatically arises in every sale or lease of goods made by a merchant who deals in good of the kind sold or leased), and the implied warranty of fitness for a particular purpose (which arises when any seller or lessor, regardless of merchant or non-merchant, knows the particular purpose for which a buyer or lessee will use the goods and knows that the buyer or lessee is relying on the seller’s or lessor’s skills and judgment to select suitable goods. Implied warranties can also arise (or be excluded or modified) as a result of course of dealing or usage of trade.

3) Can a manufacturer be held liable to any person who suffers an injury proximately caused by the manufacturer’s negligently made product?

Yes, those who make, sell or lease goods can be held liable for physical harm or property damage caused by those goods to a consumer, user or bystander, which is called product liability. If a manufacturer fails to exercise “due care” to make a product safe, or acted negligently in the manufacture of the product, the person who is injured by the product may sue the manufacture for negligence. Further, a product liability action based on negligence does not require privity of contract, meaning the person who was injured by a product need not be...
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