Business Law Today, Comprehensive 10th Edition by Roger LeRoy Miller

Exercise 20

Implied Warranties. Bariven, S.A., agreed to buy 26,000 metric tons of powdered milk for $123.5 million from Absolute Trading Corp. The milk was to be delivered in shipments from China to Venezuela. After the first three shipments, China halted dairy exports due to the presence of melamine (a harmful chemical if swallowed) in some of its milk products. Absolute assured Bariven that its milk was safe, and when China resumed its dairy exports, Absolute delivered sixteen more shipments. Subsequent tests of milk samples, however, revealed that the powered milk contained dangerous levels of melamine. Did Absolute breach any implied warranties Discuss.