Kobi was thrilled about his first new vehicle purchase.He borrowed funds from his bank with which to purchase the car.Unfortunately,just a few days after he purchased the vehicle,the pistons in the engine overheated causing the engine to seize and rendering the vehicle unusable.No one was injured,but Kobi is very upset about his vehicle and plans to sue.Which of the following is the most likely resolution of his claim?
A)He will be allowed to proceed only if he can establish that he did appropriate research prior to purchasing the vehicle and had no reason to know that it was likely to be defective.
B)He will be allowed to proceed if his sales contract contains a disclaimer that includes the word merchantability.
C)He will be allowed to proceed so long as he is up-to-date on his loan payments.
D)He will not be allowed to proceed because the only avenue for this type of claim is through a negligence action.
E)He will be allowed to proceed because the vehicle was in a defective condition.

Question

Quizplus · Accepted Answer

A)Contracts for sales of goods frequently contain numerous disclaimers,and one of
these disclaimers includes the implied warranty of merchantability.If the disclaimer uses the word merchantability,the disclaimer will be upheld for economic losses but not personal injuries.
B)Contracts for sales of goods frequently contain numerous disclaimers,and one of these disclaimers includes the implied warranty of merchantability.If the disclaimer uses the word merchantability,the disclaimer will be upheld for economic losses but not personal injuries.

Kobi Was Thrilled About His First New Vehicle Purchase