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Consumer Warranty Law: 2.7.6 Pleading Other Elements

A federal court ruled that under the federal courts’ notice pleading standards, an allegation that a supplier breached an express warranty is sufficient to plead a Magnuson-Moss claim.789 However, the Supreme Court has subsequently ruled that a pleader must amplify a claim with factual allegations when necessary to render the claim plausible.790 The Fourth Circuit has upheld the dismissal of a suit because it failed to allege the distinct consumer product that each supplier provided.

Consumer Warranty Law: 2.7.7.2 Personal Injury Damages

The Act states that it does not “(A) affect the liability of, or impose liability on, any person for personal injury, or (B) supersede any provision of State law regarding consequential damages for injury to the person.”807 This provision states that the Act does not overrule existing state laws and decisions regarding the extent to which personal injury damages are available for breach of warranty.808

Consumer Warranty Law: 2.7.7.3 Statutory, Punitive Damages

The Act does not explicitly authorize punitive damages.815 Courts generally hold that punitive damages are recoverable if they can be recovered in a breach of warranty action under the governing state law.816 Whether state law allows punitive damages in a warranty action is discussed in § 10.6, infra.

Consumer Warranty Law: 2.7.7.4.2 Revocation of acceptance

The Act authorizes “damages and other legal and equitable relief” and many courts reasonably hold that revocation of acceptance is available as a remedy under Magnuson-Moss.824 A number of courts hold that, notwithstanding any state UCC interpretations to the contrary, the Act allows a buyer to assert revocation of acceptance directly against the manufacturer.825

Consumer Warranty Law: 2.7.8.1 General Standards for Attorney Fees

The Act provides that a consumer who prevails in any action under the Act “may be allowed by the court to recover . . . costs and expenses (including attorney’s fees based on actual time expended) determined by the court to have been reasonably incurred, . . .

Consumer Warranty Law: Section 2A-108. Unconscionability.

(1) If the court as a matter of law finds a lease contract or any clause of a lease contract to have been unconscionable at the time it was made the court may refuse to enforce the lease contract, or it may enforce the remainder of the lease contract without the unconscionable clause, or it may so limit the application of any unconscionable clause as to avoid any unconscionable result.

Consumer Warranty Law: Section 2A-209. Lessee Under Finance Lease as Beneficiary of Supply Contract.

(1) The benefit of a supplier’s promises to the lessor under the supply contract and of all warranties, whether express or implied, including those of any third party provided in connection with or as part of the supply contract, extends to the lessee to the extent of the lessee’s leasehold interest under a finance lease related to the supply contract, but is subject to the terms of the warranty and of the supply contract and all defenses or claims arising therefrom.

Consumer Warranty Law: Section 2A-210. Express Warranties.

(1) Express warranties by the lessor are created as follows:

(a) Any affirmation of fact or promise made by the lessor to the lessee which relates to the goods and becomes part of the basis of the bargain creates an express warranty that the goods will conform to the affirmation or promise.

(b) Any description of the goods which is made part of the basis of the bargain creates an express warranty that the goods will conform to the description.

Consumer Warranty Law: Section 2A-212. Implied Warranty of Merchantability.

(1) Except in a finance lease, a warranty that the goods will be merchantable is implied in a lease contract if the lessor is a merchant with respect to goods of that kind.

(2) Goods to be merchantable must be at least such as

(a) pass without objection in the trade under the description in the lease agreement;

(b) in the case of fungible goods, are of fair average quality within the description;

Consumer Warranty Law: Section 2A-213. Implied Warranty of Fitness for Particular Purpose.

Except in a finance lease, if the lessor at the time the lease contract is made has reason to know of any particular purpose for which the goods are required and that the lessee is relying on the lessor’s skill or judgment to select or furnish suitable goods, there is in the lease contract an implied warranty that the goods will be fit for that purpose.

Official Comment

Uniform Statutory Source: Section 2-315.

Consumer Warranty Law: 19.10.4 State UDAP Statutes

Idaho, Massachusetts, Mississippi, Montana, New Jersey, New Mexico, Ohio, Pennsylvania, Utah, and Wisconsin have enacted detailed regulations under their unfair and deceptive acts and practices (UDAP) statutes specifying deceptive automobile repair or general repair practices.305 Several of these automobile repair regulations require repair shops to provide consumers with price estimates and repair orders.

Consumer Warranty Law: 19.10.5.2 Liability for Repair Costs for Recalls or Emissions Control Equipment Failure

Even if a vehicle’s warranty has expired, the National Traffic and Motor Vehicle Safety Act authorizes the United States Secretary of Transportation to require the manufacturer to make free repairs for safety-related defects.311 The manufacturer must send notice “to each person registered under State law as the owner and whose name and address are reasonably ascertainable by the manufacturer through State records or other available sources.”312 The National Highway Traffic Safety Administration’

Consumer Warranty Law: E.1 Introduction

This appendix reprints the parts of the Uniform Commercial Code (UCC) text and official comments most often consulted in consumer warranty cases. The UCC is prepared by the American Law Institute (ALI) and the Uniform Law Commission (formerly the National Conference of Commissioners on Uniform State Laws (NCCUSL)). These selected sections are reprinted with permission.1

Consumer Warranty Law: Listing of Provisions

Listing of UCC Article 1 Sections Reprinted

[Note: Only sections of the 2001 revised version of Article 1 which are reproduced herein are listed below.]

Article 1 General Provisions [2001]

Part 1. General Provisions

1-101. Short Titles

1-102. Scope of Article

Consumer Warranty Law: Section 1-101. Short Titles.

(a) This [Act] may be cited as the Uniform Commercial Code.

(b) This article may be cited as Uniform Commercial Code—General Provisions.

Official Comment

Source: Former Section 1-101.

Changes from former law: Subsection (b) is new. It is added in order to make the structure of Article 1 parallel with that of the other articles of the Uniform Commercial Code.

Consumer Warranty Law: Section 1-103. Construction of [Uniform Commercial Code] to Promote Its Purposes and Policies; Applicability of Supplemental Principles of Law.

(a) [The Uniform Commercial Code] must be liberally construed and applied to promote its underlying purposes and policies, which are:

(1) to simplify, clarify, and modernize the law governing commercial transactions;

(2) to permit the continued expansion of commercial practices through custom, usage, and agreement of the parties; and

(3) to make uniform the law among the various jurisdictions.

Consumer Warranty Law: Section 1-201. General Definitions.

(a) Unless the context otherwise requires, words or phrases defined in this section, or in the additional definitions contained in other articles of [the Uniform Commercial Code] that apply to particular articles or parts thereof, have the meanings stated.

(b) Subject to definitions contained in other articles of [the Uniform Commercial Code] that apply to particular articles or parts thereof:

Consumer Warranty Law: Section 2A-214. 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 a warranty must be construed wherever reasonable as consistent with each other; but, subject to the provisions of Section 2A-202 on parol or extrinsic evidence, negation or limitation is inoperative to the extent that the construction is unreasonable.

Consumer Warranty Law: Section 2A-215. Cumulation and Conflict of Warranties Express or Implied.

Warranties, whether express or implied, must be construed as consistent with each other and as cumulative, but if that construction is unreasonable, the intention of the parties determines 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.