Express warranty

Definition

An express warranty is a clear and specific promise made by a seller regarding the quality or performance of goods being sold. This warranty can be established through verbal statements, written documents, or even advertisements, and it creates an obligation for the seller to uphold the promised standard. If the goods fail to meet these explicit claims, the buyer may seek remedies under the law, which ties directly into the performance expectations and breaches that can occur in sales transactions.

5 Must Know Facts For Your Next Test

1. An express warranty can be created through written documents such as contracts, receipts, or product labels that explicitly describe the goods.
2. Verbal assurances made by a salesperson can also constitute an express warranty if they are clear enough to be taken seriously by the buyer.
3. Express warranties are not dependent on the buyer's reliance on them; they are binding even if the buyer did not rely on the statements made.
4. A seller's description of goods or a sample provided can establish an express warranty, making it essential for sellers to accurately represent their products.
5. If a product does not conform to an express warranty, the buyer can seek various remedies such as repair, replacement, or refund.

Review Questions

• How does an express warranty differ from an implied warranty in terms of creation and enforcement?
  • An express warranty is created through explicit statements or promises made by the seller regarding a product's qualities, while an implied warranty arises automatically based on law and general expectations surrounding a sale. Enforcement differs as express warranties require clear evidence of what was promised, whereas implied warranties depend on whether the goods meet basic quality standards expected by consumers. This distinction is crucial in determining liability when a product fails to meet either type of warranty.
• What role does UCC Article 2 play in defining and enforcing express warranties in sales transactions?
  • UCC Article 2 provides a legal framework that outlines how express warranties are defined and enforced in sales transactions. It specifies that any affirmation of fact, promise, or description of goods made by the seller becomes part of the basis of the bargain, effectively forming an express warranty. This means that if a seller fails to deliver on their promise regarding product quality or performance, they can be held liable for breach of warranty under this article, giving buyers protection in their transactions.
• Evaluate how express warranties impact buyer-seller relationships and what implications they have for commercial transactions.
  • Express warranties significantly influence buyer-seller relationships by establishing trust and accountability between parties. When sellers make clear promises about their products, it encourages buyers to make purchases based on those assurances. If products do not meet these promised standards, it can lead to disputes and potential legal actions, impacting future business relations. Thus, understanding express warranties is crucial for sellers to maintain credibility and for buyers to know their rights when engaging in commercial transactions.

Related terms

implied warranty: An implied warranty is an unwritten guarantee that the goods sold are fit for a particular purpose or of average acceptable quality, arising automatically in sales contracts.

breach of warranty: A breach of warranty occurs when a product fails to meet the standards set by an express or implied warranty, giving the buyer the right to seek legal remedies.

UCC Article 2: UCC Article 2 governs the sale of goods and outlines the rights and obligations of buyers and sellers, including the provisions related to express warranties.