Sales and Leases Outline (First Edition)

Sales and Leases | 179

express warranty. In light of trade usage, both parties knew that the term “quality corn” conveyed that the corn conformed to specific quality standards. The context makes clear that the farmer relied on this representation in buying the corn, making the representation a part of the bargain’s basis. [ Adapted from Duxbury v. Spex Feeds, Inc. , 681 N.W.2d 380 (Minn. Ct. App. 2004).] Compare : A consumer purchased a can of olives. The label indicated that the olives were “minced pimento-stuffed olives.” The consumer broke her tooth biting down on an olive that still had its pit. Shortly after, she sued the manufacturer, alleging that the term “minced pimento-stuffed olives” created an express warranty that each olive had been pitted. At trial, industry experts credibly testified that practically speaking, the olives had to be pitted to be stuffed, so "pimento-stuffed" implied pitting. But inevitably, some small percentage of the olives would still have pits, as it was impossible for the pitting machines to pit each olive. Additionally, relevant government standards permitted referring to olives as “pitted” even if up to 1.3 percent of olives had pits. Here, considering the trade usages and government standards, the term “minced pimento-stuffed olives” was no express warranty that each olive would be pitless. [ Adapted from Kolarik v. Corey Int’l Corp. , 721 N.W.2d 159 (Iowa 2006).] 2. Express Warranty by Description of the Goods A description of the goods creates an express warranty, provided the description is part of the basis of the bargain. The warranty, in turn, is that the goods will conform to the description. It can be difficult to distinguish between (1) an affirmation of fact or promise relating to the goods and (2) a description of the goods, and indeed, the two may oftentimes overlap. Even so, common examples of descriptions include technical specifications, blueprints, representations about the strength of materials, statements on product labels, and so on. [U.C.C. § 2-313(1)(b) (1951); 2 Hawkland UCC Series § 2-313:3, Westlaw (database updated June 2021).] Examples : (1) A buyer purchased a backhoe from a dealer. Critical to the buyer’s decision was the dealer’s statement that the backhoe’s model year was 2021. Only after taking delivery of the backhoe, however, did the buyer learn that the backhoe’s true model year was 2019. On similar facts, a state high court found that the statement of the backhoe’s model year was a description of the backhoe that gave rise to an express warranty. Of course, one might also credibly argue that the statement of the model year was an affirmation of fact or promise relating to the backhoe. Either way, the statement created an express warranty. [ See Goodwin v. Durant Bank & Tr. Co. , 952 P.2d 41 (Okla. 1998).]

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