[Boat Tow] Ryan went to a new car dealership and told the salesperson, Kristin, who was not the manager, that he needed a new car with good gas mileage and that could pull his big boat. Kristin encouraged him to buy a smaller car that she promised could pull the boat. Kristin was new to the job and did not realize that the small car did not have sufficient power to pull the boat for any distance. Ryan bought the car and used it to pull the boat. Unfortunately, the heavy pull on the car did significant damage to the car's engine. Ryan complained to Kristin who denied any liability. Ryan, who had half a semester of business law, informed Kristin that along with the sale of the car he also received an express warranty, an implied warranty of merchantability, and an implied warranty of fitness for a particular purpose; and that he could recover under any of those theories. Kristin truthfully said that no explicit promises regarding warranties were ever made orally or in writing.
-Is Ryan correct that the car was sold with an implied warranty of merchantability?
A) No, because there was no writing guaranteeing the warranty signed by the salesperson.
B) No, because Kristin was only engaged in puffing.
C) No, because only the manager can make such a warranty.
D) Yes, but only because Kristin verbally made certain promises.
E) Yes, because there was a reasonable expectation of how the vehicle would perform.
Correct Answer:
Verified
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