Week 4 Assignment Report and Project is as follow
- Every time goods are sold or bought, there is a creation of a sales contract in which the buyer agrees to pay, and the seller agrees to accept the price agreed upon. Most of the time, sales contracts are unwritten agreements and frequently oral. For instance, it seems hardly worth drafting a sale agreement for a sale of a chocolate bar explaining the expectations of the buyer that the chocolate will be fresh and fit for consumption. Buyers are protected by implied warranties whether or not written sales agreements exist. The sale of goods is governed according to Article 2 of the Uniform Commercial Code (UCC). A guarantee that good shall be suitable for sale is implied in a contract for their sale if the seller is the merchant (Uniform Commercial Code Â§ 2-316). This applies if the warranty is not excluded or modified. However, an implied warranty of merchantability can be modified by words or excluded, subject to the provision of UCC Â§ 2-316 (“Â§ 2-314. Implied Warranty: Merchantability; Usage of Trade,” n.d.). Merchantable goods must be fit for ordinary purposes, meet the promises of the facts made of the label, and are well packaged and labeled.
- GC could be sued for breach of implied warranty of merchantability for using EPI cleaning products to clean GC clients’ commercial property. EPI made an implied warranty of merchantability to GC when it sold them the cleaning products. GC cannot make the same implied warranty of merchantability to their clients since they are not the merchant of the cleaning products. GC must adhere to the implied warranty of merchantability while handling the EPI products and in case of any violation, they will be held accountable. GC must use the cleaning products as directed by the EPI and for the purpose, it was intended for. If GC happens to use the cleaning products wrongly and it causes harm to the clientâ€™s premises, they would be sued for that. If the product were used for the right purpose, but also caused harm, the client will sue GC since they expected the product to be good for the cleaning its commercial property.
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Â§ 2-314. Implied Warranty: Merchantability; Usage of Trade. (n.d.). Retrieved from https://www.law.cornell.edu/ucc/2/2-314