Also known as:breaches of warranty · warranty breach
Written by attorneys · grounded in primary & secondary sources — see below
A violation of an express or implied warranty relating to the title, quality, content, or condition of goods sold. The violation occurs when delivered goods fail to conform to an affirmation of fact or promise that formed part of the basis of the bargain.
Sources & Authorities
How it applies
Common Examples
6
Injury From Defective Steel Sheets
Brookside Pharmaceuticals bought rust-resistant steel sheets from Bay Area Systems under a contract specifying premium corrosion standards. The sheets corroded in ordinary humidity and caused chemical contamination that injured two employees. Brookside recovered damages for the employees' medical costs because the injury proximately resulted from the breach of warranty.
Implied Warranty In New Car Sale
Bianca Baker purchased a new sedan from Boreal Energy. The steering mechanism failed after two weeks, causing an accident that damaged the vehicle and injured Bianca. The court held Boreal Energy liable for breach of the implied warranty of merchantability even though the sales contract contained no express warranty language.
Belinda Baxter insured her cargo vessel with Barclay Financial under a policy containing a warranty that the ship would remain in a specified trade route. The vessel deviated and suffered a total loss. Barclay Financial denied coverage on the ground that the deviation constituted a breach of warranty under the maritime contract.
Romero v. International Terminal Operating Co.358 U.S. 354, 382-383, 79 S.Ct. 468, 3 L.Ed.2d 368 (1959)
Course Of Performance Modifying Warranty
Brian Bailey contracted with Shell Oil to purchase asphalt at a fixed price with an express warranty of quality. Over several years Shell accepted orders at varying prices without objection. When Shell later refused to honor a price adjustment, Bailey sued for breach of warranty, relying on the parties' course of performance to interpret the warranty term.
Nanakuli Paving & Rock Sales, Inc. v. Shell Oil Co.664 F.2d 772 (9th Cir. 1991)
Summary Judgment On Warranty Claim
Bella Barnes sued Celotex after her husband died from asbestos exposure, alleging breach of warranty among other claims. Celotex moved for summary judgment on the ground that Barnes had produced no evidence that any Celotex product reached the decedent. The court granted the motion because the absence of proof on an essential element of the warranty claim entitled Celotex to judgment as a matter of law.
Celotex Corp. v. Catrett477 U.S. 317, 323 (1986)
Forum Selection And Warranty Suit
Bei Bai, an Alabama dealer, sued Ricoh in Alabama federal court for breach of warranty arising from defective copiers. The dealership agreement contained a Manhattan forum-selection clause. Ricoh moved to transfer the case under section 1404(a), and the Supreme Court held that the clause must be considered in the transfer analysis even though state law would otherwise govern.
Stewart Organization, Inc. v. Ricoh Corp.487 U.S. 22, 29 (1988)
Common questions
Frequently Asked
4
Does a seller's description of goods in a contract create an express warranty?+
Yes. A description of goods becomes an express warranty when the description is made part of the basis of the bargain. The buyer may recover for breach when the delivered goods fail to conform to that description.
What is the basic measure of damages when a buyer accepts nonconforming goods?+
The measure is the difference at the time and place of acceptance between the value of the goods accepted and the value they would have had if they had been as warranted. Incidental and consequential damages may be recovered in addition.
Can a buyer recover consequential damages for personal injury caused by a breach of warranty?+
Yes. Consequential damages include injury to person or property proximately resulting from any breach of warranty. The buyer must show that the breach was the proximate cause of the loss.
Does a salesperson's pre-contract affirmation of fact create an express warranty?+
Yes. An affirmation of fact relating to the goods that becomes part of the basis of the bargain creates an express warranty. The buyer may prevail on a breach claim when the goods fail to conform to the affirmation.
32 N.J. 358, 161 A.2d 69 (1960)Torts
…expanding commercial society was the recognition of the right to recover damages on account of personal injuries arising from a breach of warranty. R. S. 46:30-75, 76; Simon v. Graham Bakery , 31 N. J. Super. 117 (App. Div. 1954), reversed on other grounds 17 N. J. 525 (1955); Marko v. Sears, Roebuck and Co. , 24 N. J.…
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