Coal Mine Company buys an excavator from Dig Equipment Inc. Coal Mine is unaware that Equity Credit Company holds a lien against the excavator. If Equity repossesses the goods, Coal Mine can recover for breach of warranty from

Question

Quizplus · Accepted Answer

The breach of warranty claim would be against Dig Equipment Inc. This is because Dig sold the excavator to Coal Mine Company without disclosing the underlying lien held by Equity Credit Company, which was a breach of the implied warranty of title. Although Equity Credit Company may have wrongfully repossessed the goods, they did not breach any warranty to Coal Mine Company. The maker of the excavator may be liable if there was a defect in the product itself, but this is not relevant to the scenario presented.

Coal Mine Company Buys an Excavator from Dig Equipment Inc