Question

Felipe purchases several new sets of speakers for his new limousines for his car service business from Nellie's SpeakerSeries. In order for the implied warranty of merchantability to be applied to these speaker sets, which of the following is required?

A) Both parties must be merchants and a sale, not a lease, must be involved.

B) Both parties must be merchants, and either a sale or lease must be involved.

C) The seller must be a merchant and a sale, not a lease, must be involved.

D) The seller must be a merchant, and either a sale or lease must be involved.

E) The seller must be a merchant, goods valued at over $500 must be involved, and either a sale or lease must be involved.

Answer 1

Answer is B) Both parties must be merchants, and either a sale or lease must be involved.

for invoking the implied warranty of merchantability, the buyer or lessee must have purchased or leased the good from a merchant. therefore in given case Both parties must be merchants because they are not the end user