Sales and Lease Warranties

The video tutorial explains the concept of warranties in the sale and lease of goods, as covered under the Uniform Commercial Code. It distinguishes between express warranties, which are explicitly stated by the seller, and implied warranties, which are not explicitly stated but are understood to exist. The three main types of implied warranties discussed are the warranty of title, ensuring the seller owns the goods; the warranty of merchantability, ensuring goods meet market standards; and the warranty of fitness for a particular purpose, ensuring goods meet the buyer's specific needs.

What is an express warranty?

• A warranty that is explicitly stated by the seller

• A warranty that is implied by law

• A warranty that covers only the title of goods

• A warranty that is not legally binding

Which of the following is an implied warranty?

• Warranty of explicit quality

• Warranty of seller's promise

• Warranty of title or ownership

• Warranty of express standards

Which warranty is concerned with the seller's right to sell the goods?

• Warranty of title or ownership

• Express warranty

• Warranty of fitness for a particular purpose

• Warranty of merchantability

What does the warranty of merchantability ensure?

• The goods are explicitly described by the seller

• The goods are suitable for a specific purpose

• The goods meet industry standards and are sellable

• The goods are of exceptional quality

When does the warranty of fitness for a particular purpose apply?

• When the seller explicitly states the purpose

• When the buyer relies on the seller's expertise for a specific need

• When the goods are sold in bulk

• When the goods are of high value