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Reference - Boat Tow

Question 54

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Reference - Boat Tow. Donnie went to a new car dealership and told the salesperson, who was not the manager, that he needed a new car that would get good gas mileage and would also pull his big boat. The salesperson encouraged him to buy a smaller car that the salesperson promised would pull the boat. Donnie bought the car and used it to pull the boat. Unfortunately, the heavy pull on the car did significant damage to the car's engine. Donnie complained to the salesperson who denied any liability. Donnie, who had half a semester of business law, informed the salesperson that along with the sale of the car he also received an express warranty and an implied warranty of merchantability, and that he could recover under either of those theories. Is Donnie correct that the car was sold with an implied warranty of merchantability?


A) No, because there was no writing guaranteeing that warranty signed by the salesperson.
B) No, because the salesperson was only engaged in exaggeration.
C) No, because only the manager can make such a warranty.
D) No, both because nothing was in writing and also because only the manager can make such a warranty.
E) Yes.

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