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Josie's Neighbor Decides She No Longer Wants Her Mountain Bike

Question 54

Multiple Choice

Josie's neighbor decides she no longer wants her mountain bike.The neighbor sells Josie the bike for $1,000.Does an implied warranty of merchantability apply?


A) Not unless formal title to the bicycle was transferred to Josie.
B) Yes,because the bicycle is a consumer good.
C) No because the purchaser must have purchased or leased the goods from a merchant.
D) Yes,because the bicycle was valued at over $500.
E) No because Josie is not a merchant buying goods in the ordinary course of business.

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