Contracts and Sales Multistate Bar Practice Exam

Which type of warranty protects against claims of patent or trademark infringement?

1. Implied warranty of fitness

2. Warranty of title

3. Warranty against infringement

4. Express warranty

The correct answer is: Warranty against infringement

The warranty that specifically protects against claims of patent or trademark infringement is known as the warranty against infringement. This warranty ensures that the seller is guaranteeing that the goods sold do not infringe on any patents or trademarks held by third parties. This is crucial in transactions involving intellectual property since a buyer may be held liable for infringement if they use a product that violates someone else's patent or trademark rights. This form of warranty provides peace of mind to the buyer, affirming that they will not face legal repercussions or claims from third parties because of the purchased goods. If, despite the warranty, the buyer faces such claims, they may have recourse against the seller for breach of warranty. In contrast, other types of warranties do not specifically address issues of intellectual property. The implied warranty of fitness relates to the suitability of goods for a particular purpose, while the warranty of title assures that the seller has the legal right to sell the goods and that the goods are free of any liens or claims. An express warranty involves specific promises or affirmations regarding the goods but does not automatically include protection against infringement unless explicitly stated.