What warranties apply to sales online?US state and federal law set out warranties that apply to the sale of goods. The law is mostly state law, and the law in the individual states is substantially the same because all of them have adopted the Uniform Commercial Code (the "UCC") in substantially the same form. This law applies both to on and off-line sales. Some states have additional laws that apply to sales to consumers, and federal law provides some special rules for sale of "consumer goods." Other federal laws deal with the granting of credit for consumer sales and disclosure of credit terms. There are also state statutes that apply to the sale of specific kinds of goods such as new cars, recreational vehicles, boats and mobile homes. These special statutes differ from state to state. Show The UCC does not directly apply to sales of "services" as opposed to "goods." However, courts have looked to the UCC for guidance in resolving contract and warranty questions related to the performance of services, especially when they are connected to a sale of goods. Many courts have also applied the UCC sale of goods law to sales or licenses of software, and the law continues to evolve on those issues. Maryland and Virginia have special statutes based on The Uniform Computer Information Transactions Act--"UCITA" that apply to sales and/or licenses of software and data. UCITA has been very controversial, and has been rejected in most states, and some states even forbid its application to their residents. Because the UCC rules apply directly or indirectly to so many kinds of transactions, it is good practice to comply with them whether your business offers goods or services (including software) or products which have elements of both. The UCC warranty provisions Express Warranties The Implied Warranty of Merchantability in sales by "merchants." The basic thrust of this implied warranty is that the goods sold must be "fit for the ordinary purposes for which such goods are used." Sellers typically try to comply with the "conspicuous" requirement by putting implied warranty disclaimer language in all capital letters of a different font size than other print in the contract and perhaps in colored or bold print. Just how well they must do it or how long they must last depend on the kind of goods, the circumstances and the price. The Implied Warranty of Fitness for the Particular Purpose. The implied warranty of title and against infringement. Disclaimer (exclusion) or modification of warranties. The Implied Warranty of
Merchantability. The UCC has two provisions relating to disclaimer or modification of merchantability. Under the first, a seller who wishes to exclude or limit the implied warranty of merchantability must mention the word "merchantability." Under this rule, general language such as "no implied warranties are made" is not sufficient. The language does not have to be written, but if it is part of a writing, it must be "conspicuous" so that a reasonable person against whom it is to operate ought to have noticed it. Sellers typically try to comply with the "conspicuous" requirement by putting implied warranty disclaimer language in bold print in all capital letters of a different size that the other print in the contract and perhaps a different color. It should also be placed in a prominent place in the contract and have an appropriate title (not buried in the text under a title that does not suggest disclaimer, exclusion or modification). The second rule, which applies both to merchantability and fitness, allows less formal language without using the magic word "merchantability." It provides that "unless the circumstances indicate otherwise, all implied warranties are excluded by 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." Many courts also require that any such language be "conspicuous." The implied warranty of "fitness for a particular purpose." The implied warranty of title and against infringement. Special State Rules for Consumer Sales Limitations on disclaimers in consumer
sales. In five other states, (California, Minnesota, New Hampshire, Oregon and Rhode Island) disclaimers are heavily restricted but not totally banned. In California, e.g., (1) if either new or used goods are covered by an express warranty, the implied warranties may not be disclaimed; (2) the implied warranties may not be disclaimed in any sale of new goods not covered by express warranty unless there is compliance with an elaborate statutory formula which requires far more detailed communication to the consumer than the UCC and conveys a strong message of transfer of risk; (3) the implied warranty of merchantability has a duration for purposes of the act of no less than 60 days nor more than one year, and express warrantors may limit the duration of that implied warranty within those parameters. A few other states, amplify the procedure for disclaimer in consumer cases. E.g., the Washington statute requires that disclaimers in consumer cases be "explicitly negotiated" and South Carolina requires specificity. Several other states confine "as is" disclaimers essentially for use with defective goods Many of these statutes apply the special limitations on the use of disclaimer to manufacturers as well as retailers. Some require distant warrantors to indemnify immediate sellers and some confer standing on consumers to obtain remedies directly from the distant warrantor. Many also provide for attorney fees for consumers who win, and a few provide for multiple damages. The Ban on "unfair" and "deceptive" practices. The state udap statutes differ considerably. Most apply only to consumer transactions, but some apply as well in the commercial context. They generally provide for actions by the state attorney general and by private parties. Some of the statutes contain a "laundry list" of unfair or deceptive practices; others leave it to the courts to determine what is unfair or deceptive. Some provide for multiple damages and/or recovery of attorney fees. There is disagreement among the states as to whether simple breach of warranty or a warrantor's failure to repair is "unfair" or "deceptive," or whether some sort of obdurate or unusual behavior is required. A very few states provide by statute that a breach of warranty is an unfair or deceptive practice. Others interpret their statutes to mean that a "mere" breach of contract is not an unfair or deceptive practice. Magnuson-Moss. Can I disclaim warranties for my online sales?In the context of Internet sales, disclaimers of warranties should be plainly visible to customers before they make a purchase. Courts may find that the disclaimer of a warranty is conspicuous even if contained within product packaging and not discovered before the purchase of the product. To be on the safe side, the buyer should be made clearly aware of the disclaimer within the contract prior to the purchase, either by contrasting font near the description of the product or in a pop up box relating the details of the disclaimer. A hyperlink to such information is likely not enough. The federal Magnuson-Moss Warranty Act places specific duties and liabilities on suppliers who offer written warranties on consumer products and restricts the power of the parties to disclaim implied warranties. This law does not require sellers to provide consumers with written warranties; nor does it regulate the specific substantive terms of warranties. It does, however, require that manufacturers and sellers provide consumers with detailed information about written warranty coverage.In addition, the statute affects both the rights of consumers and the obligations of warranty providers under any written warranties. If a company offers a written warranty to consumers, the warranty must be clearly and conspicuously designated as either a "Full (Statement of Duration) Warranty" or a "Limited Warranty," depending upon whether the warranty satisfies certain standards set forth in Magnuson-Moss. The designation must appear clearly and conspicuously as a caption, or prominent title, clearly separated from the text of the warranty. The company must clearly and conspicuously disclose written warranties in a single document, and include, in simple and readily understood language, certain items of information, such as: (1) the identities of the parties to whom the warranty is extended; (2) a description of the products and parts covered by the warranty and, where necessary for clarification, a description of what is excluded from coverage; (3) a statement of what the warrantor will do in the event the product fails to conform to the written warranty; and (4) a step-by-step explanation of the procedures which the consumer should follow in order to obtain the performance of any warranty obligation. Magnuson-Moss prohibits any deceptive warranty terms. Written warranties must be displayed in close proximity to the warranted product and must be readily available for examination by the prospective buyer. As an alternative to displaying the warranty, the seller may place signs in prominent locations informing the buyer that copies of the warranty will be furnished upon request prior to the sale. The Federal Trade Commission has issued special guidance for providing information about warranties in internet sales transactions. (See the FTC publication "A Business person's Guide to Federal Warranty Law", online at: https://www.ftc.gov/tips-advice/business-center/guidance/businesspersons-guide-federal-warranty-law.) Do all merchant sellers make an implied warranty against infringement?Unless otherwise agreed, every merchant seller warrants that the goods will be delivered free of the rightful claim of any third person by way of patent infringement, trademark infringement, or any other intellectual property law infringement. Warranty of fitness for normal use.
What is the warranty of fitness for a particular purpose?The warranty of fitness for a particular purpose is implied when a buyer relies upon the seller to select the goods to fit a specific request. For example, this warranty is violated when a buyer asks a mechanic to provide snow tires and receives tires that are unsafe to use in snow.
What is an implied warranty quizlet?implied warranty. guarantee of quality imposed by law. warranty of fitness for a particular purpose. seller advises the buyer in making a purchase, and the buyer relies on the seller's knowledge and advice when making the purchase.
What do you mean by implied warranty?An implied warranty is a legal term for the assurances that a product is fit for the purpose that it is intended and that it is merchantable, i.e., conforms to an ordinary buyer's expectations.
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