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Westfield Ins. Co. v. Huls Am.

6/9/1998

he case of fungible goods, are of fair average quality within the description; and


(c) are fit for the ordinary purposes for which such goods are used; and


(d) run, within the variations permitted by the agreement, of even kind, quality and quantity within each unit and among all units involved; and


(e) are adequately contained, packaged, and labeled as the agreement may require; and


(f) conform to the promises or affirmations of fact made on the container or label if any.


(3) Unless excluded or modified (Section 2316) other implied warranties may arise from course of dealing or usage of trade. 2315. Implied Warranty: Fitness for Particular Purpose


Where the seller at the time of contracting has reason to know any particular purpose for which the goods are required and that the buyer is relying on the seller's skill or judgment to select or furnish suitable goods, there is unless excluded or modified under the next section an implied warranty that the goods shall be fit for such purpose.


2-316. Exclusion or Modification of Warranties


(1) Words or conduct relevant to the creation of an express warranty and words or conduct tending to negate or limit warranty shall be construed wherever reasonable as consistent with each other; but subject to the provisions of this Article on parol or extrinsic evidence. (Section 2202) negation or limitation is inoperative to the extent that such construction is unreasonable.


(2) Subject to subsection (3), to exclude or modify the implied warranty of merchantability or any part of it the language must mention merchantability and in case of a writing must be conspicuous, and to exclude or modify any implied warranty of fitness the exclusion must be by a writing and conspicuous. Language to exclude all implied warranties of fitness is sufficient if it states, for example, that "There are no warranties which extend beyond the description on the face hereof."


(3) Notwithstanding subsection (2)


(a) unless the circumstances indicate otherwise, all implied warranties are excluded by expressions like "as is", "with all faults" or other language which in common understanding calls the buyer's attention to the exclusion of warranties and makes plain that there is no implied warranty; and


(b) when the buyer before entering into the contract has examined the goods or the sample or model as fully as he desired or has refused to examine the goods there is no implied warranty with regard to defects which an examination ought in the circumstances to have revealed to him; and


(c) an implied warranty can also be excluded or modified by course of dealing or course of performance or usage of trade.


(4) Remedies for breach of warranty can be limited in accordance with the provisions of this Article on liquidation or limitation of damages and on contractual modification of remedy (Sections 2718 and 2719).


2-317. Cumulation and Conflict of Warranties Express or Implied


Warranties whether express or implied shall be construed as consistent with each other and as cumulative, but if such construction is unreasonable the intention of the parties shall determine which warranty is dominant. In ascertaining that intention the following rules apply:


(a) Exact or technical specifications displace an inconsistent sample or model or general language of description.


(b) A sample from an existing bulk displaces inconsistent general language of description.


(c) Express warranties displace inconsistent implied warranties other than an implied warranty of fi

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