Liability

4/30/2015

1

Warranties

What is a Contract?

• A voluntary agreement between two or more parties that is legally enforceable

4/30/2015

2

Key Terms

• Representations and warranties

• Conditions

• Price and payment terms

• Timing of performance

• Damages

• Duration and renewal

• Termination

• Dispute resolution

Express Warranty

• Statement, promise, description, or model of goods

• Reliance by buyer

• Words “warranty” or “guarantee” not required

• “Puffing” is ok

4/30/2015

3

Implied Warranty: Merchantability

• Implied Warranty of Merchantability – Fit for general purpose

– Implied even if no statement is made

– Statement, promise, description, or model of goods

• Requirements for goods

Implied Warranty: Special Cases

• Implied warranty of fitness for a particular purpose

• Requirements

• Exceptions

4/30/2015

4

Limiting Liability

• Disclaimers

• Limited vs. full warranty

• Responsibility for defective products

Summary

• Warranties: express, implied, limited, or full

• Liability can extend to all parts of distribution chain

• Consider options for limiting liability