Answer:
Mary bought a riding mower from Local Dealer for 3,000. She put 500 down and dealer financed the rest of the purchase. Mary is to pay 100 a month and Local took a security interest in the mower until it is paid for. Local has the right to repossess the mower if Mary stops making payments on the loan. When Mary sold the mower to Neighbor, she told her about Local's security interest. Six months after the sale, the mower broke down because of a defect of which Mary was not aware. Would Mary have breached any warranties if she had told Neighbor at the time of the sale: "This mower rides like a dream?"
Yes, an express warranty
Yes, an implied warranty of fitness for a particular purpose
Yes, an implied warranty of merchantability
No, Mary's statement created no warranties.
Explanation: Mary's statement would be her opinion. Also, she was unaware of the defect and could not have foreseen the lawn mower breaking down.
An Express Warranty is a supplementary term to the primary purpose of the contract such as if Mary promised to pay for the repairs if the lawn mower breaks down.
An Implied warranty, is not stated expressly but it is implied by statute or customs, it is what the courts would deem as a term that creates warranties. An example is that the lawn mower should be in working condition at the time of sale.