Erm Paper-Misrepresentation

It definitely seems as if they misrepresented the quality of the product. [02:21] And, as a result of that, they may be sued for breach of warranty. [02:28] While this may be a lease arrangement, the Uniform Commercial Codes warranty section applies to leases, [02:37] and, in particular, there is a provision for express warranties. [02:41] And that provision provides that whenever a seller or a lessor makes and express warranty as to the way a product will perform, [02:50] he is in essence guaranteeing that the product will in fact perform that way. [02:55] Now, in order to have an express warranty, there must be specific statements of fact, [02:60] not just mere opinions--"It's a great product"--but specific statements of fact as to what that product will do. [02:67] And in this case, there seems to be some clear statements of fact about how easy the program is to learn. [02:74]

Any of your editors, if they're computer savvy, they're going to pick this up in a day, day and a half tops. [02:79]

The people at the company used the product for more than half a day, they read the manuals, and they were not able to figure out how to use the product. [02:87] So clearly the product did not live up to the standard that was set forth in the express warranty. [02:95]

If a product does not live up to its billing, the buyer or lessor can seek damages. [03:00]

When there is a breach of contract, when the product that's being sold or leased doesn't perform the way it's supposed to, [03:07] there are a couple of different kinds of damages that the purchaser can recover. [03:13] One kind of damages would be damages for, we call the "benefit of the bargain," [03:21] in other words, when he purchased that, he expected certain benefits from that purchase. [03:26] And if he can calculate what benefits he would have gained, had that product worked well, then he would be entitled to those damages. [03:36] An alternative way of looking at damages is to look at what did it cost him to have that good. [03:44] And in this case, because he had people who were working with the product, who were in essence engaged in useless work [03:53] because they could not finish the product that they were supposed to be producing, since this equipment wouldn't work, [03:59] you've lost all the time that those workers spent. [03:62] And so you'd be entitled to damages in that respect, too. [03:67] Another option is what we call a rescission of the contract, and that's not really damages. [03:74] But what it entitles the party to is to terminate immediately the contract, and to therefore have no more liability under the contract. [03:84]

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