2.  Understand the types of warranties that may apply to products  Recognize the differences between express and implied warranties  Understand the differences between full and limited warranties  Understand what it takes to disclaim (eliminate) warranties

3.  A promise or guarantee made by a seller about the quality or performance of goods for sale  Important factors to consider:  Duration—how long?  Scope—what does it cover? Wider or narrower is better?  Remedies—what must the seller do?

4.  Written or oral statement or demonstration concerning quality or performance of goods or services  Oral and demonstrative representations are hard to prove  Are all statements about a product warranties?  NO! Some are “puffing.” Puffing is “sales talk” (general statement, often exaggerated).

5.  Does not require a written warranty be given.  However, if one is given, it must comply with M-M. Why do we have M-M?  Requirements:  (1) all terms/conditions in one document  (2) simple/easy to read language  (3) available to consumer prior to sale  (4) what is covered

6.  M-M requires a “full” warranty to do the following:  (1) repair/replace defective product at no cost  (2) no unreasonable obligation on consumer  (3) fixed within a reasonable time  (4) fixed after reasonable number of attempts (otherwise, refund or replacement) (“lemon law” provision)  (5) applies to all owners during warranty period (not just first buyer)  Most warranties are limited  Discuss answers to problem 24.1 on p. 283 at your table then share.

7.  An unwritten promise created by law that a product will do what it is supposed to do  Applies only to merchants, not “casual” sellers. EXCEPT TITLE!  Three types:  (1) merchantability—average quality for the type of item  (2) fitness for particular purpose—if seller knows of a unique need and represents the product meets that need, F/PP applies  (3) title—seller warrants ownership of the goods. TITLE APPLIES TO CASUAL SELLER

8.  Disclaimer: an attempt to limit seller’s responsibility should anything go wrong.  Sellers may disclaim implied warranties using “as is” or “with all faults” in an obvious way for consumer to see.  Remedies may also be limited, e.g., “Seller’s liability under this warranty shall be limited to repair or replacement of the item.” What is not included in that situation?

9.  Prepare to act out your assigned scenario from problem 24.2 on p. 287.  Take volunteers from you colleagues to answer the questions: Was a warranty created? What type of warranty was it? Was the warranty broken?  Explain the correct answers to your colleagues

10.  Complete practice test for Chapter 24:  http://www.glencoe.com/qe/qe143.php?qi=4 534