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ES 6 UNDERSTAND SALES, CONSUMER, PROPERTY, AND CYBER LAWS

ES 6 UNDERSTAND SALES, CONSUMER, PROPERTY, AND CYBER LAWS. WARRANTIES. Express Implied Warranty of Title Exclusions. Express Warranty. Express warranty is also called a guarantee The promise or assurance of the quality or life of a product “ Guaranteed satisfaction or your money back”

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ES 6 UNDERSTAND SALES, CONSUMER, PROPERTY, AND CYBER LAWS

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  1. ES 6 UNDERSTAND SALES, CONSUMER, PROPERTY, AND CYBER LAWS BB30 Business Law 6.01 Summer 2013

  2. WARRANTIES • Express • Implied • Warranty of Title • Exclusions BB30 Business Law 6.01 Summer 2013

  3. Express Warranty Express warranty is also called a guarantee • The promise or assurance of the quality or life of a product • “Guaranteed satisfaction or your money back” • “Lifetime guarantee” BB30 Business Law 6.01 Summer 2013

  4. Express Warranty • Can be oral or written • Written form recommended • Parol evidence rule applies: evidence of oral statements made before signing a written contract cannot be presented in court to change or add to the terms of that written agreement • Magnuson-Moss Act – requires that written warranties be labeled as full or limited BB30 Business Law 6.01 Summer 2013

  5. Express Warranty • Pufferyby salesman is not a warranty, but an opinion of the salesperson. • Express warranties are created by: • Statement of fact or promise by seller • Description of goods • Use of same item or model BB30 Business Law 6.01 Summer 2013

  6. Implied Warranty A guarantee of quality imposed by law but not in writing • Implied warranty deals with sale of goods • Regulated by UCC • Given by all sellers BB30 Business Law 6.01 Summer 2013

  7. Implied Warranties • Warranty of fitness for a particular purpose • Seller knows the purpose for which goods are needed • Seller advises buyer in making purchase • Buyer relies on seller’s advice to make decision • Seller infers that the goods are fit for a particular purpose • A warranty exists BB30 Business Law 6.01 Summer 2013

  8. Implied Warranties • Warranty of Merchantability • Given by a merchant only • Merchant infersthat goods pass in the trade without objection • Goods are fit for the ordinary purpose such goods are used for • Conform to any promises or statements made on the container or label BB30 Business Law 6.01 Summer 2013

  9. Implied Warranties Usage of Trade An implied warranty that is a well established custom or practice among people in specific trades or businesses • Example: When a person sells a thoroughbred horse there is an implied warranty that papers are provided to prove the animal’s pedigree as a thoroughbred.It is expected in the horse trading business BB30 Business Law 6.01 Summer 2013

  10. Warranty of Title Seller warrants that the title is good and transfer is rightful Seller warrants that goods will be delivered free of any financial obligations about which the buyer had no knowledge BB30 Business Law 6.01 Summer 2013

  11. Warranty of Title • Sale of Stolen Goods • If stolen goods are sold to an innocent purchaser, the true owner is entitled to return of the goods • The buyer can pursue remedy against the seller for breach of warranty of title BB30 Business Law 6.01 Summer 2013

  12. Full Warranty A full warranty requires that the defective product be repaired or replaced for freewithin a reasonable length of time after complaint is made. • If the product cannot be fixed, the consumer has the option to get their money refunded. • Have you ever tried to return merchandise that you thought was under warranty but was not? BB30 Business Law 6.01 Summer 2013

  13. Limited Warranty A limited warranty provides a restricted guarantee. • Must state “Limited” Warranty • Be sure to read and understand the limits of the warranty before purchasing…caveat emptor! BB30 Business Law 6.01 Summer 2013

  14. Limited Warranty Caveat Emptor - Latin for “Buyer Beware” • It is the duty of the consumer to make informed decisions. • Be sure to read labels and research products before buying. Comparison shop. • It is the duty of the seller to provide appropriate information for the consumer. BB30 Business Law 6.01 Summer 2013

  15. Limited Warranty Caveat Venditor - Latin for “Seller Beware” • It is the duty of the seller to make informed decisions. • Example: Banks, credit card companies and businesses who extend credit to customers check credit histories and applications before extending credit. BB30 Business Law 6.01 Summer 2013

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