QUESTION 1 Because of the Rule of Privity the implied warran

QUESTION 1 Because of the Rule of Privity, the implied warranty of merchantability cannot be invoked against a storeowner and the products manufacturer by a person who did not purchase the product. O True O False QUESTION 2 If a holder of stolen goods entrusts the possession of those goods to a merchant for repair, and the merchant subsequently sells those goods by accident to a good faith 3rd party purchaser for value, the 3rd party purchaser acquires good title only if the original holder had good title. o True False QUESTION3 Tender of Delivery refers to the moment goods are available for the Buyer to take, and not when the goods are ultimately delivered. True O False QUESTION 4 Boswell agreed to purchase 250 2\" x 4\" wooden studs from Stilton by written contract which provided that Boswell would make payment prior to inspection. The studs were delivered to Boswell by truck, and were covered with a canvas tarp when they arrived at Boswel\'s work site. The driver demanded payment before unloading the studs and Boswell refused to pay, insisting on the right to inspect. The driver returned the studs to Stilton. In a suit by Stilton against Boswell for breach of contract, Boswell will win because the UCC provides that a buyer is entitled to inspect all goods prior to payment. True or False O True O False

Solution

Question 1: FALSE When the circumstances of the transaction make a remote purchaser a third-party beneficiary, then the implied warranty of merchantability can be invoked eventhough there is no privity of contract. Question 2: TRUE No one can pass a title to goods that he does not genuinely have title to. Question 3: TRUE Tender of goods means that the seller has put or is holding the goods at the disposition of the buyer and has given the buyer reasonable notice for taking delivery. Question 4: FALSE As the terms are like cash on delivery, Stilton will not win. He has agreed to pay before inspection,