Detailed Answer
(c) The implied warranty of merchantability is always
implied if the seller is a merchant with respect to the type of
goods being sold. Since Ram is a merchant, this warranty would
apply. Also, under the UCC, the seller warrants good title,
rightful transfer, and freedom from any security interest or lien of
which the buyer has no knowledge when the contract was made.
This warranty of title applies unless the merchant specifically
disclaims it. In this situation, both the implied warranty of merchantability
and the implied warranty of title apply. The implied
warranty of fitness for a particular purpose is created only when a
seller has reason to know the buyer’s particular purpose and
knows the buyer is relying on the skill and judgment of the seller
selecting the goods.