ExpertHard1 markMultiple Choice
CPA · Question 69 · Area II: Business Law
Under the UCC, an implied warranty of merchantability arises when:
Under the UCC, an implied warranty of merchantability arises when:
Answer options:
A.
The seller is a merchant with respect to goods of that kind.
B.
The seller makes a specific written promise about the goods.
C.
The buyer relies on the seller's skill to select suitable goods.
D.
The goods are sold 'as is'.
How to approach this question
Merchantability = Goods are fit for ordinary purpose. Automatically applies if Seller is a Merchant.
Full Answer
A.The seller is a merchant with respect to goods of that kind.✓ Correct
A
The implied warranty of merchantability (UCC §2-314) is implied in a contract for their sale if the seller is a merchant with respect to goods of that kind. It guarantees the goods are fit for the ordinary purposes for which such goods are used.
Common mistakes
Confusing Merchantability with Fitness for Particular Purpose (which applies if seller knows buyer's specific need).
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