First Principles of Business Law
Quiz: Statutory provisions affecting contracts for goods and services

Question 5

 

 

 

A is a retailer of general goods.  A puts some mixed goods on display with a notice saying ‘Special Offer – $5 each item.  B, a customer in A’s shop, selects one of the displayed items from this display, takes it to the pay-point, and pays $5 for it.  In the light of these circumstances which one of the following statements is correct? 

 

(a)  (a)  On the known facts, it can be stated that it is not a term of the contract between A and B that the goods purchased by B must be of merchantable quality.

(b)  On the known facts, it can be stated that it is a term of the contract between A and B that the goods purchased by B must be of merchantable quality.

(c)   There are insufficient facts provided to state whether or not it is not a term of the contract between A and B that the goods purchased by B must be of merchantable quality.

 

 

 

 

 

 

 

  
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