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Exercise 6

Warranties in the Sale of Goods

Orson buys a computer from Kane’s Machines. The computer comes with a 60-day written warranty that has a prominently displayed disclaimer of any implied warranties. Seventy days after Orson purchases the computer, it breaks down. Orson has a repairman look at the computer, and the repairman advises Orson that the computer has defects that must have been present from the time he bought it and that would definitely make it unfit for any long-term use. Orson files a lawsuit against Kane’s Machines on the basis of breach of the implied warranty of merchantability. Kane’s replies that it properly disclaimed any implied warranties.

How should the judge rule?

A. For Orson, because the computer was not fit for the ordinary purpose for which it is used.
ANSWER "A" IS NOT CORRECT. Please try again.
B. For Kane’s Machines, because it disclaimed the implied warranty.
ANSWER "B" IS CORRECT. Kane’s Machines put a clear statement in the written warranty that disclaimed any implied warranty. The written warranty has already expired, and therefore the implied warranty is no longer in effect.