Exercise 4
Warranties in the Sale of Goods
Carol buys a radio from Bert’s Bargains and no express warranties were made regarding the product. When she gets home, Carol discovers the radio does not work. Carol files suit against Bert’s on the basis of the implied warranty of merchantability. Bert’s argues that the sales slip she signed contains a disclaimer of the implied warranty of merchantability. The sales slip does contain that disclaimer, but it is in very small print in the middle of some lengthy paragraphs about other matters.
How should the judge rule?
- A. For Carol, because the disclaimer of the implied warranty was not properly made.
- ANSWER "A" IS CORRECT. A disclaimer of an implied warranty must be conspicuous. In this case, the disclaimer was buried in the fine print of the sales slip in an area discussing matters other than warranties and therefore was not properly made. Carol may succeed in her suit that the radio was not merchantable.
- B. For Bert’s Bargains, because they disclaimed the implied warranty in writing.
- ANSWER "B" IS NOT CORRECT. Please try again.