Allen, a Lawyer, Holds a Garage Sale at His Home

question 51

Multiple Choice

Allen, a lawyer, holds a garage sale at his home to sell some of his old things.Esther purchases a coat at the sale, and uses it during her business trip to Canada that winter.The coat fails to keep her warm.When she gets back to Australia, she angrily returns the coat to Allen and demands a full refund, claiming that Allen is in breach of contract.Is Allen in breach of contract?

• A)Yes, he is in breach of the statutory implied term regarding fitness for purpose.
• B)No, he is not in breach of contract, because there is no contract.
• C)Yes, he is in breach of the statutory implied term regarding merchantable quality.
• D)No, he is not in breach of contract, because the statutory implied terms regarding fitness for purpose and merchantable quality are only implied if the seller ordinarily deals in those types of goods.

---

Definitions:

Resource Scarcities

Conditions where the availability of resources is limited in comparison to the demands, leading to competition and allocation challenges.

Goal Incompatibilities

Differing objectives that are at odds with one another, making it challenging to achieve them simultaneously.

Horizontal Conflicts

Disagreements or clashes that occur between individuals or groups at the same level within an organization's hierarchy.

Premature Judgments

The formation of opinions or decisions based on insufficient or incomplete information.