3 Warranties in Article 2 of the UCC:
§ 2-313. Express Warranties by Affirmation, Promise, Description, Sample
Express warranties can be oral, written, or even pictorial
Requirements:
1) Representation of fact [seller's representation MUST be a fact, much more simply the seller's opinion of the product- which would be known as puffery]
2) Representation must form the basis of the bargain [general rule to become a basis, the representations must precede or accompany the sale]
3) Product does not live up to the express warranties
See comments after § 2-313
§ 2-314. Implied Warranty: Merchantability; Usage of Trade
§ 2-314 suggests that professional seller have special skill or knowledge with regard to the product sold and that their goods are fit for the ordinary purpose for which such goods are used.
Requirements:
1) It applies ONLY to merchants of such products in the ordinary course of trade [HAVE TO BE A MERCHANT]
2) The good is fit for its ordinary purpose [one of ordinary meaning and understanding]
Under § 2-314, party does not have to have the reliance, unlike § 2-315 below
See comments after § 2-314
§ 2-315. Implied Warranty: Fitness for Particular Purpose
Under § 2-315, the buyer must prove he/she relied upon seller's skill and judgment to select or furnish suitable goods and that the seller had reason to know of such reliance. This can be oral or written and the seller DOES NOT have to be a merchant, although can be, just has to be a seller to be held liable
A merchant will be held liable if:
1) A consumer apprises a merchant of a particular need,
2) The merchant recommends a particular product to meet that particular need,
3) The consumer relies on the merchant's recommendation
4) The consumer purchases the product
5) The product does not perform the particular use
6) The consumer is injured thereby, either directly or, in the fullness of time in which the consumer used the product
The merchant will also be held liable to anyone who obtains the product from the consumer who relied on the merchant's recommendation and uses the product
See comments after § 2-315
Warranty Limitation and Disclaimers
Article 2 of the UCC permits the seller to disclaim warranties and limit the remedies available to the buyer.
DISCLAIMERS
§ 2-316. Exclusion or Modification of Warranties [Disclaimers]
§ 2-316 defines the seller's ability to disclaim warranties, meaning it allows seller and buyer to contract that seller will have no liability. Under UCC 2-316(1), as a general rule, once an express warranty has been made it CANNOT be disclaimed. Under UCC 2-316(2) and (3), implied warranties of merchantability or fitness for a particular purpose can be disclaimed, provided that the seller carefully follows the "disclosure and conspicuousness protocols." UCC 2-316(2) requires that disclaimers of any implied warranties be conspicuous and in writing. UCC 2-201(10) defines "conspicuous" as connoting language "so written that a reasonable person against whom it is to operate out to have noticed it. Such as, a printed heading in capital is conspicuous and the language in the body form is different font, different size- for example, larger than the other wording, in bold, etc. Thus, UCC 2-316 allows the parties to agree or not to agree to disclaiming warranties. However, it does NOT allow the manufacturer to put in a disclaimer of warranty without bringing it to the attention of the purchaser. UCC 2-316(3)(a) properly permits the seller to effectively disclaim both warranties of merchantability and fitness simultaneously. "AS IS" disclaimers allow a seller to effectively disclaim implied warranties of quality by communicating to the buyer that the product must be accepted "as is," or with all faults.
WARRANTY LIMITATIONS
§ 2-719. Contractual Modification or Limitation of Remedy
§ 2-719 defines seller's ability to limit remedies available to the buyer. It operates on the premise a warranty obligation existed and was breached. Also, addresses the issue of whether or how the parties may limit or reduce the amount of damages available to the breach. A limitation of remedies acknowledges the Seller's obligations in warranty, but operates to restrict the remedy. An example of a limitation would be that P's remedy will be confined to repair or replacement with no seller liability for incidental or consequential damages.
See comments after § 2-719
§ 2-318. Third Party Beneficiaries of Warranties Express or Implied
§ 2-318 contains 3 alternatives. A majority of the states follow alternative A. Alternative A provides "a seller's warranty whether express or implied extends to any natural person who is in the family or household of his buyer or who is a guest in his home if it reasonable to expect that such person may use, consumer or to be affected by the goods and who is injured in person by breach of warranty. A seller may not exclude or limit the operation of this section. § 2-318 addresses the horizontal privity question of who can sue.
See comments after § 2-318
