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.
Sierra inc. is trying to understand the warranties that are attached to each of its sales, as defined under the UCC.
The only relevant information you've discovered is as follows:
- Sierra inc. warranted that the item was free from any ownership disputes or competing claims.
Under the UCC, which category of warranty does Sierra inc. need to worry about in this situation?
Answer:
- Warranty of Title
Explanation:
-
This warranty guarantees the goods are free from undisclosed liens, encumbrances, or claims of third parties.