Question

Sklar, CPA, purchased from Wiz Corp. two computers. Sklar discovered material defects in the computers 10 months after taking delivery. Three years after discovering the defects, Sklar commenced an action for breach of warranty against Wiz. Wiz has raised the statute of limitations as a defense. The original contract between Wiz and Sklar contained a conspicuous clause providing that the statute of limitations for breach of warranty actions would be limited to 18 months. Under the circumstances, Sklar will losebecause the clause providing that the statute of limitations would be limited to 18 months is enforceable

Answer 1

Answer:

The answer is: Sklar will lose because the clause providing that the statute of limitations would be limited to 18 months is enforceable.

Explanation:

UCC 2-725 establishes a 4 year statute of limitations to the selling of goods. But the parties involved are capable of reducing that period, as long as the period is longer than 1 year (in this case the warranty period was 18 months). Since the lawsuit was made 36 months after the goods were delivered and 26 months after the defects were discovered, Wiz Corp. is no longer liable.