Tony owns and operates a company that sells giant novelty "we are number 1" foam hands. Tony is updating his store to sell giant novelty "we are number two" foam hands and has decided to sell his old display equipment. Tony, being an astute businessman, comes to you for your legal advice. He is worried that an implied warranty of merchantability will attach to his sale. He is concerned because he did not manufacture the display equipment and he does not to give any warranties. Does Tony have to worry about the implied warranty of merchantability?

Question

Quizplus · Accepted Answer

The implied warranty of merchantability applies to merchants who deal in goods of the kind sold. Since Tony is not a merchant of display equipment but rather sells novelty foam hands, the warranty of merchantability does not automatically apply to the sale of his used display equipment.

Tony Owns and Operates a Company That Sells Giant Novelty