Overlapping Warranties

Overlapping Warranties

Occurs when two or more warranties made in a single transaction:

§ If warranties are consistent, they are construed as cumulative.

§ If inconsistent:

•    First:  implied warrant of fitness for a particular purpose.

•    Then:  express.

Warranties and Third Parties

At common law only the Buyer could sue the Seller because she is the one in privity of contract with the Seller.

UCC 2-318 provides 3 alternatives from which the states may choose.

Warranty Disclaimer

Express Warranties can be disclaimed:

§ If they were never made (evidentiary matter).

§ If a clear written disclaimer in contract with specific, unambiguous language and called to Buyer’s attention (BOLD CAPS UNDERLINED).

Implied Warranties:

§ Merchantability: “As Is,”  “With All Faults.”

§ Fitness for a Particular Purpose: must be in writing and conspicuous.

§ If Buyer has the right to fully inspect and either: does so or refuses to do so, warranties are disclaimed as to defects that could reasonably be found.

Case 23.3: International Turbine Services v. Vasp Brazilian Airlines (2002).