Blueprint: Warranty

Moon, a farmer, needs to install a two-thousand-pound piece of equipment in his barn. This will require lifting the equipment thirty feet up into a hayloft. Moon goes to Davidson Hardware and tells Davidson that he needs some heavy-duty rope to be used on his farm. Davidson recommends a one-inch-thick nylon rope, and Moon purchases two hundred feet of it. Moon ties the rope around the piece of equipment; puts the rope through a pulley; and, with a tractor, lifts the equipment off the ground. Suddenly, the rope breaks. The equipment crashes to the ground and is severely damaged. Moon files a suit against Davidson for breach of the implied warranty of fitness for a particular purpose.

What law has many rules governing warranties of goods? a. Uniform Transactions Code

b. Uniform Sales Code

c. Uniform Commercial Code

d. Uniform Goods Code

Where do we find a statute that makes these warranties less subject to deception and more understandable? a. state law

b. federal law

What type of warranty is involved here? a. title warranty

b. express warranty

c. implied warranty

Warranties impose a duty on the

a. Seller

b. Buyer

c. both

What must Moon prove to be successful in a breach of implied warranty of fitness for a particular purpose? 1. a. the goods are merchantable

b. that the seller, Davidson, expressly or impliedly knew the particular purpose for which Moon would use the goods

c. the goods are free of infringement

2. a. the goods are merchantable

b. that Moon purchased the goods because of his reliance on the seller's judgment

c. the goods are free of infringement.

Did Davidson know the purpose for which Moon intended to use the rope? a. Yes

b. No

Will Moon be successful against Davidson? a. Yes

b. No

Why? a. Davidson knew he needed heavy duty rope for the farm

b. Davidson did not know Moon planned to use the rope to lift 2,000 lbs of equipment

c. Davidson and/or any reasonable person would know that one inch rope is not considered heavy duty

What if Davidson did know the purpose for the rope - Would it be reasonable for Moon to rely on Davidson's judgment that a one- inch nylon rope would lift 2,000 lbs? a. Yes

b. No

Would Moon be successful against Davidson?

a. Yes

b. No