Question

In: Operations Management

• Identify the main issues regarding sale of goods without warranty. • Identify relevant principles from...

• Identify the main issues regarding sale of goods without warranty. • Identify relevant principles from the Sale of Goods Act 1957. • Apply the above relevant principles to the issues, supported by examples and cases.

Solutions

Expert Solution

As per the sale of goods act of 1957, A warranty is a promise that can be legally enforces based on the features and specifications of the product on sale. Although, it is legally enforceable, a warranty covers the damage and issues faced by the consumer during the tenure of the usage of the product in ways specified. There are two kinds of warranty. One – Express Warranty, which is part of the bargain. The promise that is directly related to the bargain, especially in terms of the seller’s descriptions is often related to as express warranty. Second- Implied Warranty, Which is warranty imposed by law. Certain goods and services are warranted by law.

Certain issues related to Warranty in the sale of Goods act are:

  1. Breach of Warranty: breach of warranty refers to the failure of the trader in fulfillment of the terms and conditions agreed on the quality or type of the product. The law states that the seller should keep up the assertions made on the warranties concerning goods and services that are sold to the buyer.
  2. Condition as to title: if the title is misinterpreted or there is a difference in the products name in the package and in warranty will be considered as breach in condition and this can be legally questioned.
  3. Condition as to description: if the given description of the product and the actual content added in the product differs will lead to breach in description which is considered as breach in warranty if any.
  4. Condition as to quality: if the quality of products differs from the offer made by the seller is considered to be breach in quality of product.
  5. Caveat Emptor: this phrase means let the buyer beware, here the seller will not be responsible for the quality of the product unless and until it is assured with warranty.   

General Principles of Sale of Goods Act

  1. Sale: the basic term of sale is transferring the product and ownership to the buyer by the seller.
  2. Agreement to sell: here the same concept of selling is applied. However the ownership transference is done on future date.

For Example. A, sells goods to B without warranty. As per the Sale of Gods Act of 1957, the said sale should cover any breach clauses or any legal aspects. This means that B is not liable to post a complaint or civil action against B. However, If the aforesaid sale is an agreement to sell. B can actually move for legal procedures as the transference is goods or ownership is done at a future date. Even if there is no warranty in this case, legal obligation is there for A to keep up to the promise of contract to sell.


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