A purchase of a deep fryer at a sale of a bankrupt restaurant's equipment by the bankruptcy trustee is covered by the warranty of merchantability.

Question

Quizplus · Accepted Answer

The warranty of merchantability, which guarantees that goods are fit for the ordinary purposes for which such goods are used, typically applies to sales by merchants in the course of business. A bankruptcy trustee selling off assets of a bankrupt entity is not considered a merchant in this context, and thus, such sales are usually as-is and without warranties unless explicitly stated otherwise.

A Purchase of a Deep Fryer at a Sale of a Bankrupt