Question

In: Accounting

What are the general problems with the warranty theory?

What are the general problems with the warranty theory?

Solutions

Expert Solution

The general problems with the warranty theory are following four problems:-

  • The pretender must prove that there was a sale.
  • The sale was of goods rather than real estate or services.
  • The action must be brought within the four-year statute of limitations, when the tender of delivery is made, not when the plaintiff discovers the defect.
  • Under UCC,which covers leases, the claimant who fails to give notice of breach within a reasonable time of having accepted the goods will see the suit dismissed, and few consumers know enough to do so, except when making a complaint about a purchase of spoiled milk or about paint that wouldn’t dry.

Also the claimant faces additional problems from warranty theory, those are following in the below:-

1) Exclusion or Modification of Warranties,

2) Exclusion of Express Warranties,

3) Exclusion of Implied Warranties in General,

4) Implied Warranty of Fitness,

5) Implied Warranty of Merchantability, etc.


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