Book Opener

Example 8. Norma bought a secondhand VCR from Kenneth.She saw his ad in the classified section of the newspaper. Kennethwas not in the business of selling VCRs. The VCR stoppedworking on the day after Norma purchased it. Because Kennethis not a merchant, Norma does not have the benefit of the warrantyof merchantability.Merchantable goods must:l Pass without objection in the trade under the contract description.l Be fit for the ordinary purposes for which such goods are used.l Be adequately contained, packaged, and labeled as the agreementmay require.l Conform to the promises or statements of fact made on the containeror label, if any.Example 9. If Norma had purchased the VCR from a local electronicsstore, she would have had legal recourse for breach ofwarranty of merchantability. Even a secondhand VCR is not merchantableif it breaks down the day after someone buys it. It is notfit for the ordinary purpose for which VCRs are used.Some other examples of items that courts have held to be nonmerchantableinclude:l Day-old chickens that had bird cancer.l Contaminated blood received in a blood transfusion.l Weed killer that also killed a farmer’s squash.l A boat motor that produced excessive amounts of black smoke.l A used car that was not reasonably fit for the general purpose forwhich it was sold.l Applesauce that was inedible because of poor taste and smell.l Contaminated cheese.l Any food containing such impurities as bits of wood, metal, or glass.Beads andBusinessRashmika and Juliahave a business makingand selling beadednecklaces, bracelets,and earrings at a fleamarket on weekends.Some of the necklacesand bracelets are strungon elastic so that theyfit snugly. One SaturdayJulia found some oldelastic thread for $1 ayard. She bought 10yards of it. Rashmikawas concerned thatover time the old elasticwould stretch or breaktoo easily. Julia thoughtthey could make a lotmore money using theless expensive thread.What are the ethicalissues in this case? DoRashmika and Julia havean ethical responsibilityto their customers toprovide the strongest,most durable productfor the price?Usage of TradeAnother implied warranty arises from the customary ways in whichthe parties have dealt in the past, or usage of trade . For example, whena person sells a thoroughbred horse, there is an implied warranty thatthe seller will provide papers certifying the horse is a thoroughbred.The reason this implied warranty arises is that providing such papershas become a well-established custom among people who trade inhorses.Warranty of TitleWhen a merchant or a private party sells goods, the seller warrantsthat the title being conveyed is good and that the transfer is lawful. ThisChapter 14: The Importance of Warranties 303