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Soil-Structure Interaction Seminar - Foundation Performance ...

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July 21, 1994<br />

Page3<br />

corporation, association, or other group, however<br />

organized. Only exception is advertising media.<br />

7. Waiver of DTP A: General rule is waivers are void. Two<br />

exceptions: (1) business consumers with assets of $5<br />

million or more can contractually waive the DTPA; (2)<br />

consumers who are not in a significantly disparate<br />

bargaining position who are represented by counsel on<br />

transactions other than home purchases on deals greater<br />

than $500,000 when both consumer and attorney sign<br />

written waiver.<br />

B. Prohibited conduct: False, Misleading or Deceptive Acts<br />

1. Laundry list: Of the 23 listed items, the most frequently<br />

used are items (5) &(7) which deal with representations<br />

about the quality of goods and services and (23) failing to<br />

disclose know facts.<br />

2. Breach of warranties<br />

a) Express: Any representation of fact or promise as to<br />

the title, condition or quality of goods or services<br />

will constitute an express warranty. For instance, a<br />

representations that a product is in "good working<br />

order" or "top quality" constitute an express<br />

warranty. Woods v. Littleton 554 S.W.2d 662<br />

(Tex.1977), Chrysler Plymouth City y. Guerrero. 620<br />

S.W.2d 700 (Tex.Civ.App.-San Antonio, 1981, no<br />

writ).<br />

b) Implied<br />

i) Merchantability: New goods are fit for their<br />

intended use. Does not apply to used goods,<br />

but has been extended to the sale of used<br />

homes. Thornton Homes. Inc. y. Greiner,<br />

619 S.W.2d 8 (Tex.Civ.App.-Eastland 1981, no<br />

writ).<br />

ii) Good workmanship: New homes must be<br />

constructed in a good and workmanlike<br />

manner. Evans y. J. Stiles. Inc., 689 S.W.2d<br />

399 (Tex. 1985)

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