Material Defects and Liability

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Questions and Answers

Which of the following is a prerequisite for the existence of a defect (Sachmangel)?

  • The product must be new.
  • The buyer must be a consumer.
  • The defect must be present at the time of the **Gefahrübergang** (transfer of risk). (correct)
  • The seller must be aware of the defect.

A buyer's primary rights exist when the seller fails to?

  • Allow withdrawal from the contract.
  • Offer a price reduction.
  • Provide compensation for damages.
  • Fulfill their obligation of **Nacherfüllung** (subsequent performance). (correct)

What does 'Gewährleistung' legally require the seller to do when selling a faulty item?

  • Be liable for the defect. (correct)
  • Offer a guarantee that extends beyond the statutory warranty period.
  • Replace the item with a similar, but not necessarily identical, product.
  • Inform the buyer about the defect, but not necessarily fix it.

Under what condition(s) can a buyer exercise secondary rights, such as price reduction or contract withdrawal?

<p>If the seller's attempt to remedy the defect through <strong>Nacherfüllung</strong> has failed or been refused. (D)</p> Signup and view all the answers

Besides the damage resulting from the defect itself, what additional condition must be met for a buyer to claim damages?

<p>The seller must have acted with intent or negligence. (A)</p> Signup and view all the answers

Which costs is the seller legally required to cover as part of the primary rights of the buyer when a defect exists?

<p>Transport, labor, and material costs. (D)</p> Signup and view all the answers

What is the standard length of the 'Gewährleistungsfrist' (warranty period) for a defective item?

<p>2 years (B)</p> Signup and view all the answers

What are the criteria that define a 'Sachmangel' (defect)?

<p>When subjective, objective, assembly, or update requirements are not met. (C)</p> Signup and view all the answers

When does the responsibility for an item transfer from the seller to the buyer?

<p>When the buyer receives the item (<strong>Übergabe</strong>). (C)</p> Signup and view all the answers

Which of the following rights is considered a 'secondary right' of the buyer in case of a defect?

<p>The right to reduce the purchase price. (A)</p> Signup and view all the answers

Flashcards

Seller's liability for defects

Legal responsibility of the seller to address defects in goods sold; also termed as 'Gewährleistung'.

Guarantee meaning

Agreement with the manufacturer to cover any defects.

Gefahrübergang definition

The risk transfers to the buyer when they become responsible for the goods.

Seller's Primary Obligation for Defects

The seller must initially offer either repair or replacement of the item.

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Ersatzlieferung definition

Delivery of a non-defective item as a remedy for a defective purchase.

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Beseitigung des Mangels meaning

Repairing the defect.

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Buyer's Secondary Rights for Defects

Reduction in price, contract termination, or damages, if initial remedies fail.

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Preisminderung meaning

A reduction of the original price of the purchased item because of a flaw or defect.

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Rücktritt vom Vertrag meaning

The action of canceling the original sales contract.

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Schadensersatz meaning

Compensation for damage resulting from the defect + seller's fault.

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Study Notes

  • Sachmangel refers to defects in quality

Guarantee

  • Guarantee is equal to a contract with the manufacturer

Liability for defects

  • When selling a defective item, it is the dealer that is liable for the defect
  • This is a legal regulation also referred to as a guarantee
  • The guarantee period is two years

Defect

  • A defect exists when the following do not match:
    • Subjective requirements (e.g. specific agreed quality)
    • Objective requirements (e.g. usual quality)
    • Installation requirements (e.g. proper assembly)
    • The update is not properly implemented (e.g. on a smartphone)
  • Precondition: Defectiveness at the time of transfer of risk

Transfer of risk:

  • The point in time from which the buyer is responsible for the item
  • Typically at the time of delivery

Primary rights of the buyer

  • The seller must provide supplementary performance, which includes:
    • Replacement delivery
    • Rectification of the defect (repair)
  • The seller bears the costs for:
    • Transport
    • Labor and material costs

Secondary rights of the buyer

  • The seller’s supplementary performance must have failed or been refused
  • The seller must grant:
    • Price reduction
    • Withdrawal from the contract
    • Compensation
  • Damage resulting from the defect includes:
    • Fault of the seller
      • Intent or negligence

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