Article 2 — Sales · Section 2-318

UCC § 2-318

Quick Answer

What does UCC § 2-318 cover?

This section addresses the limitations on the liability of the seller of goods regarding third-party beneficiaries in warranty claims.

Source: U.C.C. § 2-318

Official Text
A seller's warranty, expressed or implied, extends to any natural person who is in the family or household of the buyer or who is a guest in the buyer's home if it is reasonable to expect that such person's use of the goods is a foreseeable use.
Plain Language

UCC § 2-318 indicates that warranties provided by sellers apply not just to the immediate buyer of the goods, but also to certain third parties, like family members or guests, who may use those goods. This recognizes the importance of extending protections to individuals who are reasonably foreseeable users of the product.

Key Definitions

natural person

An individual human being as opposed to a legal entity, such as a corporation.

warranty

A promise or guarantee made by the seller regarding the condition or quality of the goods sold.

Practical Examples

Example 1

A parent buys a bicycle for their child; if the child is injured due to a defect in the bicycle, the warranty may cover the child.

Example 2

A guest at a friend's house uses a defective appliance that causes injury; the guest may have the right to claim under the warranty as a foreseeable user.

Common Exam Issues
  • Identify who qualifies as a third-party beneficiary under UCC § 2-318.
  • Discuss the limitations of warranties as they pertain to third parties.
  • Analyze hypothetical scenarios where a warranty claim may or may not be applicable to a third party.
Related Sections
  • ucc-2-313
  • ucc-2-314

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