A retailer that stocks cotton undergarments sells a pair by description to a customer. A hidden chemical residue in the fabric causes dermatitis when the customer wears them normally. Under the Sale…
Question and options
A retailer that stocks cotton undergarments sells a pair by description to a customer. A hidden chemical residue in the fabric causes dermatitis when the customer wears them normally. Under the Sale of Goods Act, 1930, which statement about the retailer's contractual liability is correct?
The retailer has breached only a warranty.
The retailer has breached an implied condition.
The retailer has no contractual liability for the hidden defect.
The retailer is liable only if it knew of the residue.
Answer and explanation
Section 16(2) implies a condition of merchantable quality when goods are bought by description from a seller who deals in goods of that description. Undergarments with hidden chemical residue that causes dermatitis in ordinary wear fail that condition. An examination qualifies the protection only as to defects it ought to reveal.
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