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Chapter 21
Warranties
VI. Answers to Critical Legal Thinking Cases
21.1 Express Warranty
Yes. An express warranty was made by Ashe regarding the quality of the diamonds in the bracelet. The
Supreme Court of Virginia held that the term v.v.s. quality created an express warranty that the jeweler
gave when he sold the bracelet to Daughtrey. It is not necessary to the creation of an express warranty that
the seller use formal words such as “warrant” or “guarantee.” Here, Ashe did more than give a mere
21.2 “As Is” Warranty Disclaimer
Yes, the “as is” disclaimer was conspicuous and properly disclaimed as the implied warranty of
“AS IS” was in capital letters. Language in the body of a form purchase contract is conspicuous if it is
larger than the rest of the contract. Here, the words “THIS USED MOTOR VEHICLE IS SOLD AS IS.
Rockenbach Chevrolet was granted summary judgment, and Mitsch’s lawsuit was dismissed. Mitsch v.
Rockenbach Chevrolet, 833 N.E.2d 936, 2005 Ill. App. Lexis 699 (Appellate Court of Illinois, 2005)
VII. Answer to Ethics Case
21.3 Ethics Case
No, Ingersoll Rand is not liable for the breach of implied warranty of merchantability because it properly
disclaimer is set out in large type and the section is clearly labeled “Warranties.” This passes the UCC test
for conspicuousness. Because Ingersoll Rand had properly disclaimed the implied warranty of
product it sold as allowed by the UCC. Cole Energy Development Company v. Ingersoll Rand Company,
678 F.Supp. 208, 1988 U.S. Dist. Lexis 923 (United States District Court for the Central District of
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Illinois)