Question

Kate owned a small grocery store. One day John went to the store and purchased a can of chip dip that was, unknown to Kate or John, adulterated. John became seriously ill after eating the dip and sued Kate for damages on the grounds that she breached an implied warranty of merchantability. Is Kate liable? Why?

Answer 1

Kate is liable here. According to the implied warranty of merchantability, when a seller is a merchant who deals in goods of the kind of sold or leased, the seller warrants that the goods sold or leased are properly packed and labeled, are of proper quality and are reasonably fit for the ordinary purposes for which such goods are used. In this case Kate owns a grocery store and hence deals with goods like chip dips and implied warranty of merchantability applies here. Hence Kate had to ensure that the sold chip dips are properly packed and labeled, are of proper quality and are reasonably fit for consumption. By selling adulterated ship dip, Kate has breached the implied warranty of merchantability and hence she is liable.