Question

Oceanic Vessels, Inc. and Pacific Harbor Company enter into a contract for a sale of a boat. Oceanic is a merchant who deals in goods of the kind sold. The goods are defective. Under the UCC, the implied warranty of merchantability is breached
a.only if Oceanic did not know about and could not have discovered the defect.
b.only if Oceanic did not know about the defect.
c.only if Oceanic knew about or could have discovered the defect.
d.regardless of what Oceanic knew or could have discovered.

Answer 1

Answer:

d.regardless of what Oceanic knew or could have discovered

Explanation:

Under contract law, the Uniform Commercial Code (UCC) governs commercial contractual transaction such as involving goods and tangible objects (such as a purchase of a car). Under the UCC, the implied warranty of merchantability, which denote presumed assurances for goods sold, is breached even if Oceanic didn't know about the bad state of the boat sold to Pacific harbor Company. This is because there is implied warranty under this type of transaction and oceanic did not expressly state or make a disclaimer as to the state of the goods and if it should be taken "as it is"