UCC Warranties

Lesson Exercise Solution

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.

Harvey Co. is trying to understand the warranties that are attached to each of its sales, as defined under the UCC.

Here's what you know:

Harvey Co. warranted it held unencumbered ownership of the vehicle and had the right to assign it.

Under the UCC, which category of warranty does Harvey Co. need to worry about in this situation?

This warranty guarantees the goods are free from undisclosed liens, encumbrances, or claims of third parties.