1. Walters bought a power lawnmower. Attached to the engine was a tag that read in part,...

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1. Walters bought a power lawnmower. Attached to the engine was a tag that read in part, “ For 90 days from purchase date Power Engine Company will replace for the original purchaser, free of charge, any part or parts found, upon examination at any factory authorized dealer, to be defective under normal use and service.” Two weeks after purchase, the starter mechanism broke, and Walters returned her machine to the factory authorized dealer. Can the dealer be compelled to repair the mower?
2. Adano Restaurant Supply, which sells only to commercial customers, sold 200 plastic dishes to Airport Diner. When the owner of the diner attempted to wash the dishes in the dishwasher, they were distorted by the heat. Airport Diner claimed that there was an implied warranty of fitness for a particular purpose, since most restaurants used the same type of dishwasher it did. When the owner bought the dishes from Adano, he assumed that they could be washed with the equipment in his restaurant. Does Airport Diner have a legal remedy?
3. Ferguson contracted to buy a quantity of knitting yarn. After receipt he cut it and knitted it into sweaters. At this point, he discovered color variations from one piece to another. Ferguson refused to pay the agreed price, claiming that the yarn had been sold with a warranty of merchantability. The seller, Wilson Trading Corporation, sued to collect the contract price and pointed out that the sales contract provided that “ no claims . . . shall be allowed if made after weaving, knitting, or processing, or more than ten days after receipt of shipment.” Ferguson viewed the time-limit clause as modifying the warranty of merchantability, which was stated explicitly elsewhere in the contract, and that the disclaimer was in conflict with the warranty. Will the disclaimer be viewed as negating the warranty?

Dealer
A dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...
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