Contracts and Sales Multistate Bar Practice Exam

In what situation does the implied warranty of fitness for a particular purpose apply?

1. When the goods are sold at retail

2. When the buyer explicitly states their needs

3. When the seller knows the buyer is relying on their skill to select suitable goods

4. When the buyer has used the goods before

The correct answer is: When the seller knows the buyer is relying on their skill to select suitable goods

The implied warranty of fitness for a particular purpose arises when the seller knows that the buyer is relying on the seller's skill or judgment to select goods that are suitable for a specific, intended use. This warranty attaches when two key conditions are met: the seller must have knowledge of the particular purpose for which the buyer needs the goods, and the buyer must indeed rely on the seller's expertise to fulfill that need. In this context, if a buyer goes to a seller and communicates a specific requirement or purpose for the product they need, and the seller understands and agrees to provide a product that meets that need, the seller is under an obligation to ensure that the product is fit for that expressed purpose. If the product fails to meet those expectations, the buyer may have recourse under this implied warranty. The other situations do not inherently trigger this warranty. For instance, simply selling goods at retail does not establish any particular fitness unless the seller has the requisite knowledge. Similarly, if a buyer merely states their needs without the seller understanding and agreeing to help select suitable goods, the implied warranty does not apply. Lastly, prior use of the goods by the buyer does not indicate that the seller has a responsibility to ensure the fitness for a new or different purpose. Thus