Which implied warranty applies when the seller knows the buyer's particular purpose for the product and the product is relied upon for that purpose?

• A. Implied warranty of merchantability
• B. Implied warranty of fitness for a particular purpose
• C. Nonwaiver agreement
• D. Election

Answer: (B)

The implied warranty of fitness for a particular purpose applies when the seller knows the buyer has a specific use for the goods and the buyer relies on the seller to select or furnish goods that will meet that use. If the seller is aware of the buyer’s intended purpose and the buyer depends on the seller’s expertise, the goods must be fit for that purpose. When these conditions are met, a breach allows the buyer to recover.

This differs from the implied warranty of merchantability, which covers fit for ordinary, general use and assumes average quality for goods of that kind, not a special purpose known to the seller. The remaining options aren’t warranties created in this scenario: a nonwaiver agreement is a contract clause, and election relates to choosing remedies, not the suitability of the goods for a stated purpose.