Contracts 24/08/2015 05:33:00

Article 2 of the UCC provides that there is an implied warranty of

merchantability in consumer goods sold and an implied warranty that the
goods will be fit for the purpose for which they were sold. The implied
warranty of merchantability, as codified in the UCC, imposes minimum
standards of quality for the goods sold. The implied warranty of fitness
means that the product can be used for the purpose for which it was sold.
The applied warranty of merchantability applies to goods sold by a merchant
of the type of goods in question. Thus, to be covered by Article 2, the
consumer must have purchased the product from a merchant who usually
sells that type of item. Thus, if a pet store owner sold his used car to a third
party, that transaction would not be covered by Article 2 of the UCC because
selling cars is not the ordinary business of the pet store owner.
Exclusions and Modifications

Article 2 applies to all consumer goods sold except those for which the
implied warranties of merchantability have been excluded or modified. A
manufacturer or seller of consumer goods can exclude or modify the implied
warranties in three ways:

The seller can use expressions like "as is," "with all faults" or other
language which, in common understanding, calls the buyer's attention to the
exclusion of warranties and makes plain that there is no implied warranty.

If, before entering into the contract, the buyer examined the goods or
the sample or model as fully as he desired or refused to examine the goods,
there is no implied warranty with regard to defects that an examination
ought to have revealed to him.

An implied warranty can also be excluded or modified by course of
dealing or course of performance or usage of trade.
 Consumers must provide notice of a claim for a breach of the implied
warranties within a reasonable time. What constitutes a reasonable time
under the UCC depends on the type of product at issue as well as each
state's version of the UCC. In addition, consumers must demonstrate
reliance on the warranty. Remedies for breach of the implied warranties
under the UCC are generally limited to liquidated damages or contractual
damages. However, these must be reasonable in light of the anticipated or
actual harm caused by the breach, the difficulties of proof of loss, and the
inconvenience or difficulty of otherwise obtaining an adequate remedy.

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