Question

Tony owns and operates a company that sells giant novelty "we are number 1" foam hands. Tony is updating his store to sell giant novelty "we are number two" foam hands and has decided to sell his old display equipment. Tony, being an astute businessman, comes to you for your legal advice. He is worried that an implied warranty of merchantability will attach to his sale. He is concerned because he did not manufacture the display equipment and he does not to give any warranties. Does Tony have to worry about the implied warranty of merchantability?

Accepted Answer

A)   Yes, because the implied warranty of merchantability arises automatically.
B)   Yes, but only if the buyer asks about the warranty and Tony makes an affirmation.
C)   No, because the implied warranty of merchantability does not arise automatically.
D)   No, because he is not a merchant of display equipment so the warranty of merchantability does not apply.E) A) and C)
F) None of the above

Exam 10: Warranties and Products Liability

Correct Answer
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Exam 10: Warranties and Products Liability

Correct AnswerverifiedShow Answer

Correct Answer
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