Contracts and Sales Multistate Bar Practice Exam

Who can the implied warranties extend to beyond the buyer?

1. Anyone in the general vicinity

2. Only members of the buyer's family

3. Guests in the buyer’s home who might use the goods

4. No one, only the buyer

The correct answer is: Guests in the buyer’s home who might use the goods

Implied warranties are legal assurances that certain conditions are met regarding a product's quality, safety, or suitability for use. In the context of sales transactions, these warranties are not just limited to the direct buyer but can extend to third parties who may reasonably rely on or use the product. The correct choice indicates that the implied warranties can extend to guests in the buyer's home who might use the goods. This extension is supported by the principle that manufacturers and sellers are expected to ensure their products are safe and fit for use not only by the immediate purchaser but also by those whom the purchaser permits to use the product. This is especially relevant in cases where the product is intended for ordinary use by other individuals, such as in a household setting. Key factors that influence this extension include the nature of the goods, their intended use, and the expectation that such use will occur. For example, if a buyer purchases a piece of equipment for home use, it is reasonable to expect that guests in that home may also utilize that equipment. Therefore, they could be considered beneficiaries of the implied warranties. In contrast, the other choices do not accurately reflect the scope of these warranties. "Anyone in the general vicinity" is too vague and does not establish a direct relationship.