UCC Warranties
Lesson:
Under the Uniform Commercial Code, buyers are protected by four types of warranties.
They are:
- Warranty of Title - This warranty guarantees the goods are free from undisclosed liens, encumbrances, or claims of third parties.
- Express Warranty - This warranty guarantees that explicitly stated promises, descriptions, and samples are reliable.
- Implied Warranty of Merchantability - This warranty guarantees that the goods are fit for their ordinary intended purposes
- Implied Warranty of Fitness for a Particular Purpose - This warranty guarantees that the buyer can rely on the seller's expertise when he suggests the items as a solution for a particular purpose.
Romeo Industries is trying to understand the warranties that are attached to each of its sales, as defined under the UCC.
This is what you've been told:
- Romeo Industries sold insulation that melts in fires to a builder who asked for fire-proof insulation.
Under the UCC, which category of warranty does Romeo Industries need to worry about in this situation?
Answer:
- Implied Warranty of Fitness for a Particular Purpose
Explanation:
-
This warranty guarantees that the buyer can rely on the seller's expertise when he suggests the items as a solution for a particular purpose.