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CSEET · Business Laws and Management · Elements of Law relating to Sale of Goods

Consider these statements about implied condition of merchantable quality: I. It applies where goods are bought by description from a seller who deals in goods of that description. II. It applies even for defects that the buyer's examination ought to have revealed. III. The seller must be the manufacturer for the condition to apply. Which is correct?

Only statement I is correct. The merchantable quality condition applies to goods bought by description from a seller who deals in such goods, whether or not he manufactures them, and it does not cover defects that the buyer's examination ought to have revealed.

  1. AOnly ICorrect
  2. BI and II
  3. CI and III
  4. DII and III

Explanation

The condition applies to goods bought by description from a seller dealing in that description, whether or not he is manufacturer or producer, so I is right and III is wrong. If the buyer has examined the goods, there is no implied condition for defects that examination ought to have revealed, so II is wrong.

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