BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -An implied warranty of merchantability is defined in U.C.C. § 2-314. U.C.C. § 2-314(1) states that unless excluded or modified, a warranty that goods shall be merchantable is implied in a contract for sale if the seller is a merchant with respect to goods of that kind.

Detailed explanation-2: -Implied warranties of merchantability applies only to merchants. Test: the merchandise need only be of reasonable quality [including adequate packaging and labeling] within expected variations and for the ordinary purposes for which they are used.

Detailed explanation-3: -An implied warranty of merchantability on a used product is a promise that it can be used as expected, given its type and price range. As with new merchandise, implied warranties on used merchandise apply only when the seller is a merchant who deals in such goods, not when a sale is made by a private individual.

Detailed explanation-4: -Which of the following is true of a warranty of merchantability? Warranty of merchantability relates only to the fitness of the product made or sold.

Detailed explanation-5: -The implied warranty of title comes in every sale unless effectively disclaimed. It guarantees that the seller has the legal right to transfer the goods and they will be delivered free from liens or encumbrances that the buyer did not know about at the time of contracting.