Ocean Vessels, Inc

Ocean Vessels, Inc., and Pacific Harbor Company enter into a contract for a sale of a ship. Ocean is a merchant who deals in goods of the kind sold. The ship is defective. Under the UCC, this is a breach of the implied warranty of merchantability

A) only if Ocean did not know about and could not have discovered the defect.
B) only if Ocean did not know about the defect.
C) only if Ocean knew about or could have discovered the defect.
D) regardless of what Ocean knew or could have discovered.