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CH 5] Business 101 5-17

Illustration 5.3 Certificate of Warranty — Limited

An implied warranty is one that is imposed on the seller, though not specifically
expressed by the parties, ensures that the seller has clear title to the product they sell and
the product will serve the purpose for which it is being sold. State laws hold automobile 5
dealers responsible if cars they sell don't meet reasonable quality standards. These
obligations are called implied warranties - unspoken, unwritten promises from the seller to
the buyer. However, dealers in most states can use the words "as is" or "with all faults" in a implied warranty
written notice to buyers to eliminate implied warranties. There is no specified time period Warranty legally imposed
for implied warranties. If you have a written warranty that doesn't cover your problems, on the seller and, generally,
you still may have coverage through implied warranties. That's because when a dealer sells automatically effective
a vehicle with a written warranty or service contract, implied warranties are included unless disclaimed by the
seller in writing.
automatically. The dealer can't delete this protection. Any limit on an implied warranty's
time must be included on the written warranty.
property
The Law of Property Something for which a
Property, the right to hold and enjoy property is a key feature of the private enterprise person or company has the
system. Property is something for which a person or business has an unrestricted right of unrestricted right of
possession or use. Property rights are guaranteed and protected in the U.S. Constitution. Of possession or use.

note however, the United States Supreme court indicated in Kelo v. City of New London in real property
June of 2005 that private property can be taken by the state and given to other private Real estate.
parties for personal economic gain, under the guise of improving the tax revenues collected
by tax agencies is for the common good, negating the fifth amendment to the U.S. personal property-
Constitution. tangible
Property consisting of
There are two categories for property, real property and personal property. Real physical things, such as
Property refers to real estate, land and anything permanently attached to it, such as roads, goods and products.
fences and buildings. Personal property is defined as either tangible or intangible.
Personal Property-Tangible consists of physical things such as equipment, inventory, personal property-
trucks, etc.; Personal Property-Intangible represents property shown by documents or intangible
other written instruments, such as checks, money orders, stocks, and bonds. They also Property most often
represented by a document
include trademarks, patents and copyrights. Your textbook represents personal property. or other written statement.
Negotiable Instruments negotiable instrument
A negotiable instrument is a document of monetary value that represents money Form of commercial paper
(currency). A negotiable instrument takes the form of commercial paper that is transferable that is transferable among
among individuals and businesses. Examples of negotiable instruments include bonds, individuals and
businesses.

Learning to Do, Doing to Learn, Earning to Live, Living to Serve
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