California's version of the Uniform Commercial Code's implied warranty of merchantability protects the consumer from suffering losses resulting from faulty consumer goods. Business owners must be aware of their options and should consult with counsel to devise a suitable business strategy to protect your business from losses while maintaining a high level of customer service and satisfaction. An experienced business attorney can help the business owner avoid pitfalls associated with implied warranties from the sale of consumer goods.
When you are engaged in the business of supplying goods, you have the ability to reclaim these goods when the buyer fails to pay. In rare instances, buyers will purchase more goods than usual, stock up inventory, then file for bankruptcy in an effort to refuse paying for the goods. When the business to which you supply goods becomes insolvent, it may seek protection of federal bankruptcy laws in order to prevent you from recovering any money owed. Regardless of the situation, no business owner wants to ship goods to buyers for free, without payment.