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First Principles of Business Law |
| Statutory provisions affecting contracts for goods and services |
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3. Terms implied by law into contracts for the sale of goods |
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3.7.3. The requirement of 'merchantable' quality |
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Read the facts and the question and then choose the best answer. A, a builder, orders 50,000 metres of 2 x 4 cm building timber from B, a sawmill operator. B quotes a price of $60,000 which A accepts. When the timber is delivered, A finds that a large proportion of the wood is so knotty and warped that A cannot use it and nobody else will buy it from him, even at a reduced price. Although nothing was said about the quality of the wood when A bought it, A claims that in these circumstances the law obliges B to deliver a better quality timber than he did. Is A correct? |
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(b) No, in these circumstances A has delivered wood of the required type and quality. (a) Yes, in these circumstances, B has not delivered wood of the required quality. |
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