Business Law and the Regulation of Business 11th Edition by Richard Mann, Barry Roberts

Exercise 17

Saul sold goods to Bruce, warranting that the goods were of a specified quality. The goods were not of the quality warranted, however, and Saul knew this at the time of the sale. Bruce drew and delivered a check payable to Saul and drawn on Third National Bank in the amount of the purchase price. Bruce subsequently discovered the goods were faulty and stopped payment on the check. Third National refused to pay Saul on the check.
a. What are the arguments that Saul can recover (1) from Bruce and (2) from Third National?
b. What are the arguments that (1) Bruce should prevail? and (2) Third National should prevail?
c. Who should prevail? Why?