Implied warranty: merchantability
- usage of trade
Source:
Section 72.3140 — Implied warranty: merchantability; usage of trade, https://www.oregonlegislature.gov/bills_laws/ors/ors072.html
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Notes of Decisions
A municipal corporation engaged in the business of supplying water to its inhabitants is engaged in an undertaking of a private nature and is generally liable therein for breach of contract or for negligence as a private corporation would be, but is not subject to an implied warranty of merchantability. Coast Laundry, Inc. v. Lincoln City, 9 Or App 521, 497 P2d 1224 (1972)
The seller was shown to have breached implied warranties of merchantability and fitness for a particular purpose. Valley Iron and Steel Co. v. Thorin, 278 Or 103, 562 P2d 1212 (1977)
In products liability action against manufacturer, where defective product was purchased from manufacturer’s distributor rather than from manufacturer itself, there was no “privity of contract” and thus implied warranty of merchantability was not applicable to transaction. Davis v. Homasote Company, 281 Or 383, 574 P2d 1116 (1978)
Evidence, inter alia, that buyer gave no specifications for electronic control unit, that buyer relied upon seller’s skill and judgment in its design and manufacture unit, and that buyer’s inspection did not reveal latent defects, was sufficient to establish existence of implied warranty of fitness for particular purpose. Controltek, Inc. v. Kwikee Enterprises, Inc., 284 Or 123, 585 P2d 670 (1978)
Reliance is not necessary element of implied warranty of merchantability. B.W. Feed v. General Equipment Co., 44 Or App 285, 605 P2d 1205 (1980)
Law Review Citations
11 WLJ 12, 21-35 (1974); 28 WLR 565 (1992)