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Contracts • Terms of the Contract
K#103
Legal Definition
If a buyer examines goods before accepting them, there are no implied warranties for any defects that are obvious upon examination. Any express warranties would remain in effect.
Plain English Explanation
Implied warranties rely on an assumption from the buyer that the goods they are receiving have some expected level of quality or feature. When it is reasonable for the buyer to make such an assumption, then the courts will enforce implied warranties out of fairness.
However, it isn't fair for a buyer to assume something about goods when they have actually inspected them and such a defect is obvious upon inspection. The courts exist to enforce fairness, not prevent buyers from having to act like responsible adults.
However, it isn't fair for a buyer to assume something about goods when they have actually inspected them and such a defect is obvious upon inspection. The courts exist to enforce fairness, not prevent buyers from having to act like responsible adults.
Hypothetical
Hypo 1: Bob buys 1,000 ceramic coffee mugs from Sam. While Sam was baking the mugs in his kiln, he messed up and had the temperature too high. As a result, nearly all of the mugs experienced severe cracking in their bases. Bob shows up to pick up his mugs. He opens the box, picks out 2 mugs, and holds them up to the light. Bob is upset that there are holes in the mugs, but accepts them anyway. Later, when Bob tries to make a cup of coffee, the coffee drips through the bottom of his mug, ruining his pants. Bob wants to sue Sam for violation of the implied warranty of merchantability, which states that a coffee mug should be able to be used as a coffee mug. Result: Bob is correct about the implied warranty, however, the warranty does not exist when he inspected the cups before accepting them. It was obvious that the cups were not suitable to be used for actually holding liquids, and yet Bob still accepted them.
Visual Aids
Related Concepts
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