Question

Which of the following is necessary for the warranty of merchantability to arise in a sale of goods?

I. The seller must be a merchant with respect to goods of that kind.
II. The warranty must be in writing.
III. The buyer must have relied on the seller's skill or judgment in selecting the goods.
A. II and III only.
B. I, II, and III.
C. I and III only.
D. I only.

Answer 1

The warranty of merchantability requires that the seller be a merchant with respect to goods of that kind and that the buyer relies on the seller's skill or judgment in selecting the goods; hence, the correct answer is C. I and III only.

Step-by-step explanation:

The question pertains to the conditions necessary for the warranty of merchantability to arise in a sale of goods. Under the Uniform Commercial Code (UCC), which governs the sale of goods in the United States, for a warranty of merchantability to be implied, certain requirements must be met.

The key requirement is that the seller must be a merchant with respect to goods of that kind, which means they must have knowledge or skill particular to the goods being sold. The warranty of merchantability ensures that the goods are fit for the ordinary purposes for which such goods are used, are of average, fair or medium-grade quality, and are adequately packaged and labeled.

Therefore, the correct answer to which conditions are necessary for the warranty of merchantability to arise would be C. I and III only.