551: Listen and Learn -- Warranties and Disclaimers Under the UCC (Contracts)
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This episode of The Law School Toolbox Podcast dives into the UCC's rules on warranties and disclaimers in contracts for the sale of goods. Hosts Alison Monahan and Lee Burgess explain the distinction between express warranties—created by seller statements, descriptions, or samples—and two implied warranties under the UCC: merchantability and fitness for a particular purpose. They clarify that express warranties cannot be disclaimed, even if a contract attempts to do so, because doing so would be inconsistent with the seller’s own representations. In contrast, implied warranties can be disclaimed if the disclaimer is conspicuous in writing, such as using bold headings or phrases like 'as is.' The hosts use two detailed hypotheticals—the classic car sale and the epoxy manufacturing case—to illustrate how these rules apply in practice. The California Bar Exam-style hypo demonstrates that while implied warranties may be disclaimed, an express warranty based on a sample remains enforceable. The episode concludes with practical takeaways for law students preparing for contracts exams and real-world legal practice. Key takeaways include: (1) Express warranties arise from statements, descriptions, or samples that become part of the basis of the bargain; (2) Implied warranties of merchantability and fitness for a particular purpose protect buyers but can be disclaimed if conspicuous; (3) A disclaimer cannot override an express warranty; (4) The 'as is' or 'with all faults' language is effective for disclaiming implied warranties; and (5) Courts assess whether a disclaimer is conspicuous based on formatting and placement. The tone is instructive, clear, and encouraging, with a focus on exam-relevant analysis and practical understanding.
Express warranties are created by seller statements, descriptions, or samples that become part of the basis of the bargain and cannot be disclaimed.
Implied warranties of merchantability and fitness for a particular purpose can be disclaimed if the disclaimer is conspicuous in writing.
A seller cannot disclaim an express warranty even if the contract contains a general disclaimer of all warranties.
The 'as is' or 'with all faults' language is a common and effective way to disclaim implied warranties.
Courts evaluate whether a disclaimer is conspicuous based on font size, bolding, and placement, not just content.
…and 3 more takeaways available in PodZeus
Introduction to Warranties and the UCC
The hosts introduce the episode as part of the 'Listen and Learn' series, focusing on warranties and disclaimers under the UCC. They clarify that the UCC applies only to contracts for the sale of goods, not services or real estate, and outline the key topics: express warranties, implied warranties, and disclaimers.
Express Warranties: Creation and Examples
“The seller's statement that the car has only 50,000 miles on it is likely a statement of fact because the number of miles is an objective, verifiable detail.”
Implied Warranties: Merchantability and Fitness for a Particular Purpose
“The implied warranty of fitness for a particular purpose applies when the seller knows the buyer’s specific purpose and the buyer relies on the seller’s skill or judgment.”
Disclaiming Warranties: Rules and Limitations
“A seller cannot disclaim an express warranty even if the contract says 'all warranties are disclaimed'—the express warranty wins.”
Hypothetical Application and Final Analysis
“The epoxy did not harden properly on the surfboards, so it was not fit for its ordinary purpose—breach of the implied warranty of merchantability, unless properly disclaimed.”
“A seller cannot disclaim an express warranty even if the contract says 'all warranties are disclaimed'—the express warranty wins.”
“The implied warranty of fitness for a particular purpose applies when the seller knows the buyer’s specific purpose and the buyer relies on the seller’s skill or judgment.”
“The epoxy did not harden properly on the surfboards, so it was not fit for its ordinary purpose—breach of the implied warranty of merchantability, unless properly disclaimed.”
Hosts
UCC
other
Lee Burgess
person
Alison Monahan
person
epoxy
product
Bing Surfboards
organization
Super Chemicals
organization
surfboard
product
Law School Toolbox
organization
1962 Porsche
product
wetsuit
product
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