What's the Appeal of Used Luxury Goods? 1) Suppose that joe decides to treat himself to a Rolex watch for his 50 th birthday. Upon receiving the watch, he realizes that it loses about 5 minutes per hour, so that he constantly needs to reset it. Which implied warranty does this particular watch violate? (We know this watch must be badly damaged or a fake, because Rolex has a longstanding reputation for top-notch quality.) Implied warranty of fitness for human consumption The foreign substance test The conspicuous warranty test Implied warranty of merchantability What's the Appeal of Used Luxury Goods? 2) As the video notes, The RealReal sells watches made by Cartier. Suppose that Cartier advertises its luxury watches as the finest watches made in the history of humanity" and states that "the man who wears a Cartier is the envy of every man he meets:" These claims are and do not create an express warranty. puffing illegal objective unethical but not criminal What's the Appeal of Used Luxury Goods? 3) In this video, Julie Wainwright notes that the value of some luxury products increases with age. However, as products age, they sometimes show wear and tear. For example, a Prada handbag might have a small tear on an inner seam, or a pair of Christian Loboutin shoes may have a slightly scuffed sole. When selling these products, The RealReal may indicate that the buyer agrees to accept the product "with all faults." In such cases, The RealReal is adding a(n) to the sale. disclaimer of the implied warranty of fitness for a particular purpose disclaimer of the implied warranty of merchantability "as is" disclaimer full warranty