Cengage Advantage Books: Foundations of the Legal Environment of Business 3rd Edition by Marianne Jennings

تمرين 13

Stanislaus County, California awarded a contract for the construction of a water treatment plant to Black Veatch. Black Veatch purchased pipe for installation to and from the plant from a supplier who worked with representatives from Black Veatch to determine a pipe that would work for the soil and weather conditions near the plant. Black Veatch followed the supplier's recommendations. After the plant opened, there were significant problems with the pipes' failure rates. Which of the following statements is correct?
A) The supplier has no liability to the county
Because it did not have a contract with the city.
B) The supplier has liability for breach of implied warranty of fitness for a particular purpose.
C) There is no warranty liability when there is no privity.
D) Black Veatch has no liability for the problems with the pipes.