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BUS LAW I On May 1, 2003, Seller contracts to sell Buyer a toaster that it warrants for five years. Has Buyer sued within the time period permitted by Article 2's statute of limitations?

A. No, because the lawsuit was filed more than 4 years after Seller purchased the toaster.
B. No, because the lawsuit was filed more than 4 years after Seller delivered the toaster.
C. Yes, because the lawsuit was filed within 4 years after Buyer discovered the toaster’s defect.
D. Yes, because the toaster was still under its five-year warranty.

User Ainsausti
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1 Answer

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Final answer:

Under Article 2 of the UCC, the statute of limitations for bringing a lawsuit on a sales contract is four years from delivery, regardless of the warranty period. The presence of a warranty doesn't extend this statute of limitations unless a specific discovery rule exception applies.

Step-by-step explanation:

Understanding the Statute of Limitations in Article 2 Sales

The question asks if the Buyer has sued within the time period permitted by Article 2's statute of limitations for a contract to sell a toaster that included a five-year warranty. Under Article 2 of the Uniform Commercial Code (UCC), which governs the sale of goods, the statute of limitations is typically four years from the date of delivery of the goods. A warranty may promise to fix or replace the good, but this does not alter the statute of limitations for bringing a lawsuit. If a lawsuit is filed beyond this four-year period, it is generally barred regardless of the warranty period unless there is a specific discovery rule that applies in the given jurisdiction, allowing a lawsuit to be filed within a certain period after discovering the defect.

Without more specific information about the timing of the lawsuit relative to the discovery of a defect, we cannot determine if option C is correct. Generally, however, the presence of a warranty does not extend the statute of limitations itself, which addresses option D directly. So, if the lawsuit was filed more than four years after delivery of the toaster and there are no special discovery rule exceptions, it would not fall within the allowed time period for bringing an action under Article 2's statute of limitations.

User Anchor
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