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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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3.7.4. The relevance of knowing the buyer's purpose |
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Read the facts and the question and then choose the best answer. A, a farmer, says to B: "I am thinking of farming alpacas and I need to be sure that I feed them properly. I don't know what would be the best type of animal food to use. What do you suggest?" B, a retailer of feedstock, says: "My grade 1 animal food is a good product." A says: "OK, I'll have 10 bags of that." In these circumstances, is B bound by the contract to supply animal feed that is suitable for alpacas? |
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(a) Yes. In these circumstances, the animal food must be suitable for feeding to alpacas. (b) No. In these circumstances, the animal food needs only be of merchantable quality and not necessarily suitable for A's specified purpose. |
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