It\u2019s possible that when you were in school, history was not necessarily your favorite subject. But to understand express versus implied warranties, a brief history lesson is in order.<\/p>\n
Before delving in, however, you\u2019ll be happy to know that Hammerle Morris has practiced business law since 1984. We have an extensive\u00a0online library<\/a>\u00a0for your reference purposes, as well as a staff of highly\u00a0qualified and experienced\u00a0business law attorneys<\/a>.<\/p>\n In 1892, as\u00a0the\u00a0American\u00a0economy\u00a0grew at a rapid pace\u00a0and commerce increasingly crossed state boundaries,\u00a0the Uniform Law Commission (ULC) was created to provide the states with non-partisan, well-drafted commercial laws. Today,\u00a0the ULC is\u00a0comprised\u00a0of\u00a0lawyers representing\u00a0all\u00a050\u00a0states,\u00a0the District of Columbia, Puerto Rico and the U.S. Virgin Islands, and they work together\u00a0writing and promoting\u00a0the enactment of uniform state laws in areas where uniformity is desirable and practical.<\/p>\n One of the organization\u2019s most important actions came in 1942\u00a0when\u00a0the ULC\u00a0worked\u00a0in partnership\u00a0with another nongovernmental agency,\u00a0the American Law Institute (ALI),\u00a0to create the Uniform Commercial Code (UCC) that was offered to the states for their consideration in 1951. Pennsylvania was the first to adopt the UCC, and other states followed over the next 20 years.<\/p>\n In reality, the UCC is only a model or recommendation of what a state\u2019s commercial code might include, and by itself,\u00a0it has no legal force. In practice, however, every state has adopted some version of the UCC, and these state versions have the effect of law\u00a0because they are, in fact, laws. The Texas version is known as the Business and Commerce Code, but for purposes of clarity,\u00a0we will simply refer to it as the UCC.<\/p>\n Eleven articles make up the UCC, and these, in turn, are\u00a0divided into Parts and Sections, with specific UCC rules found in the Sections. For example, Article 2 of the UCC deals with Sales, the topic of\u00a0express\u00a0warranties is covered in Article 2, Section 313 (UCC 2\u00a0313), and Article 2,\u00a0Section 315 (UCC 2 315) addresses implied warranties.<\/p>\n In business and legal transactions, a warranty is an assurance by one party to another party that certain facts or conditions are true or will happen. The party\u00a0purchasing\u00a0the product is permitted to rely on the warranty and seek legal remedy if the warranty\u00a0is breached.<\/p>\n Furthermore, a warranty is\u00a0express or implied or both. In some cases,\u00a0the seller of a commodity or property expressly guarantees the quality of the product purchased. On the other\u00a0hand,\u00a0in certain situations,\u00a0the law implies a warranty where\u00a0there is\u00a0no express warranty. Both express and implied warranties provide legal relief for the purchaser.<\/p>\n An express warranty is created by the seller\u2019s words and actions, and under UCC 2 313 a seller can create one of these warranties\u00a0with:<\/p>\n Essentially, express warranties are affirmative promises about the qualities and features of the goods being sold. If a manufacturer says that a vehicle will get 35 MPG on the highway or another says that a watch is waterproof to 300 feet, those are both\u00a0examples of\u00a0express warranties.<\/p>\n Under the UCC, however, express warranties also include descriptions of the goods being sold, or samples shown the buyer. For example, if a buyer is shown a particular laptop computer, and they then purchase the same model, the sample computer is now an express warranty that assures the customer that the laptop they have purchased is the same type and quality as the display model.\u00a0 As you can see, it is not necessary to use formal words like \u201cguarantee\u201d or \u201cwarrant\u201d to create an express warranty.<\/p>\n In addition to express warranties, UCC 2 314 and 315 create a second type, called an implied warranty. As the name suggests, an implied warranty is made even if not specifically mentioned. This type of warranty ended the old rule of\u00a0caveat emptor<\/em>\u00a0(let the buyer beware), and these warranties allow buyers to be confident the commodities purchased meet certain minimum standards.<\/p>\n In addition, the UCC creates two types of implied warranties,\u00a0both of which apply in Texas:\u00a0the warranty\u00a0of \u201cmerchantability\u201d\u00a0and\u00a0the warranty that\u00a0the\u00a0goods are\u00a0\u201cfit for\u00a0a particular\u00a0purpose.\u201d<\/p>\n Under the UCC definition of merchantability, goods must be of at least average quality, properly packaged and labeled and fit for the ordinary purposes they were designed to serve. However, an implied warranty\u00a0of merchantability\u00a0is limited to the kinds of goods\u00a0normally sold by a merchant. If, for example, the owner of a clothing store\u00a0sells\u00a0an unneeded display case to\u00a0some other merchant, there would be no implied warranty of merchantability on this transaction because the seller normally sells clothing, not display cases.<\/p>\n The implied warranty of fitness\u00a0for a particular purpose\u00a0applies if the seller knows or has reason to know that the buyer will be using the item purchased for a particular purpose. If the seller knows the purpose for which the item is to be used, the seller impliedly warrants\u00a0that the item is indeed suitable for that particular purpose.<\/p>\n For example, a contractor might need a truck with enough horsepower to pull a loaded heavy equipment trailer and the salesman knows of this particular purpose. When the salesman sells the contractor a\u00a0particular truck, he has made an implied warranty of fitness for a particular purpose, namely that the truck he has sold is indeed suitable for moving heavy equipment.<\/p>\n The rationale behind\u00a0this type\u00a0warranty is that buyers typically depend on the seller\u2019s skill and expertise to help them find the specific goods that meet their needs.<\/p>\n Because warranties typically become an issue when there is a problem, a prudent seller may try to limit the scope of his warranty before a problem arises. Within certain limits, the UCC allows sellers to disclaim both express and implied warranties. Generally, a seller who wants to disclaim a UCC\u00a0warranty must do so specifically.<\/p>\n Just how specific depends on the kind of warranty being disclaimed. An express warranty must be expressly disclaimed.\u00a0As to implied warranties, a seller can disclaim all implied warranties by stating that the item is being sold \u201cas is,\u201d or \u201cwith all faults\u201d or some other phrase making it clear to the buyer that there are no implied warranties. The UCC also requires that all disclaimers of implied warranties must be in writing and be conspicuous, and not hidden in the fine print of a lengthy sales document.<\/p>\n With this summary, we have really only touched on the highlights of issues related to express\u00a0versus\u00a0implied warranties and disclaimers to both. It is extremely important that sellers clearly understand what\u00a0express and implied warranties\u00a0are,\u00a0as well as how to disclaim warranties with a properly written disclaimer\u00a0prepared\u00a0by a highly experienced\u00a0business law attorney<\/a>.<\/p>\n Conversely, we also understand the many frustrations\u00a0a\u00a0consumer can face trying to have defective merchandise either repaired or replaced. Our attorneys<\/a> understand that\u00a0when you buy a consumer product, you expect it to meet certain standards of quality and performance and\u00a0that\u00a0when it comes to matters of breach of warranty, we have every confidence that we can be of assistance to you.<\/p>\n If\u00a0you\u2019re dealing with warranty issues\u00a0as a merchant or buyer, we urge you to\u00a0contact us<\/a> for an initial consultation. Give us the opportunity to examine your situation and provide you with the very best warranty-related legal assistance.<\/p>\nThe\u00a0Uniform Law Commission and the Uniform Commercial Code<\/strong><\/h2>\n
Organizational Makeup of the UCC<\/strong><\/h2>\n
Warranty Definition<\/strong><\/h2>\n
UCC 2 313 \u2013 Express Warranties<\/strong><\/h2>\n
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UCC 2 314 and 315 \u2013 Implied Warranties<\/strong><\/h2>\n
Warranty Disclaimers<\/strong><\/h2>\n
Get Assistance from Business Law Attorneys in Lewisville, Texas<\/strong><\/h2>\n