Implied Warranty In the Sale of Forfeited Vehicles By U.S. Customs? - Contract Law - Federal Circuit
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Implied Warranty In the Sale of Forfeited Vehicles By U.S. Customs?

In Agredano v. U.S., No. 08-5114. the U.S. Court of Appeals for the Federal Circuit dealt with the issue of whether the U.S. Customs and Border Protection breached an implied-in-warranty when it inadvertently sold a vehicle containing concealed narcotics to the plaintiff at an auction.

As set forth in the decision: "To recover for a breach of warranty, a plaintiff must allege and prove (1) that a valid warranty existed, (2) the warranty was breached, and (3) plaintiff's damages were caused by the breach."

Finding at issue under the first prong, the Court reversed the trial court's ruling in favor of the plaintiff in holding that it is incongruous to find that Customs impliedly warranted what it expressly disclaimed as Customs clearly and unambiguously stated that it was not extending a warranty regarding any aspect of the vehicle.

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