Business Law- Chapter 21 Flashcards
Warranty
A seller’s or lessor’s express or implied assurance to a buyer or lessee that the goods sold or leased meet certain quality standards.
Express Warranty
A warranty that is created when a seller or leassor makes an affirmation that the goods he is selling or leasing meet certain standards of quality, description, performance, or condition.
Statement of Opinion
A commendation of goods, made by a seller or lessor, that does not create an express warranty.
Compensatory Damages
Damages that are generally equal to the difference between the value of the goods accepted at the time and place of acceptance.
Implied Warranty of Merchantability
Unless properly disclosed, a warranty that is implied that sold or leased goods are fit for the ordinary purpose for which they are sold or leased, as well as other assurances.
Implied Warranty of Fitnes for Human Consumption
A warranty that applies to food or drink consumed on or off the premises of restaurants, grocery stores, fast-food outlests, and vending machines.
Foreign Substance Test
A test to determine mechantability based on foreign objects found in food.
Consumer Expection Test
A test to determine merchantability based on what the average consumer would expect to find in food products.
Implied Warranty of Fitness for a Particular Purpose
A warranty that arises where a seller or lessor warrants that the goods will meet the buyer’s or lessee’s expressed needs.
Warranty Disclaimer
A statement that negates express and implied warranties.
Conspicuous
A requirement that warranty disclaimers be noticable to the reasonable person.
Magnuson-Moss Warranty Act
A federal statute that regulates written warranties on consumer products.
Warranty of Good Title
A warranty in which the seller warrants that she has valied title to the goods being sold and that the transfer of title is rightful.
Warranty of no Security Interests
A warranty in which sellers of goods warrant that the goods they sell are delivered free from any third-party security interests, liens, or encumbrances that are unknown to the buyer.
Warranty against Infringements
An automatic warranty of a seller or lessor who is a merchant who regularly deals in goods of the kind sold or leased which warrants that the goods are delivered free of any third-party patent, trademark, or copyright claim.
