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.
Correct Answer:
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