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M, a shopkeeper, sold a Television set to N, who purchased it in good faith. The set had some manufacturing defect and it did not work after a few days in spite of repairs. In this case, the television was not merchantable as it was not fit for ordinary purpose
  • a)
    the buyer has no right to reject the television.
  • b)
    the buyer has the right to reject the television and to have refund of the price.
  • c)
    both of the above.
  • d)
    none of the above [(a) & (b)]
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
M, a shopkeeper, sold a Television set to N, who purchased it in good ...
Explanation:
In this case, the buyer has the right to reject the television and claim a refund of the price paid. This is because the television set had a manufacturing defect and was not fit for its ordinary purpose. Let's discuss this in detail.

The concept of merchantability:
Merchantability refers to the quality of a product that makes it suitable for its ordinary purpose. When a buyer purchases a product, it is assumed that the product is merchantable unless specified otherwise. In other words, the product should be reasonably fit for its intended use and free from any defects that would render it unfit for its ordinary purpose.

The buyer's rights:
According to the Sale of Goods Act, if a product is not merchantable, the buyer has certain rights. In this case, since the television set had a manufacturing defect and did not work properly, it can be considered as not merchantable. As a result, the buyer has the following rights:

1. Right to reject the television: The buyer has the right to reject the television within a reasonable time after discovering the defect. This right arises because the buyer purchased the television in good faith, expecting it to be fit for its ordinary purpose. However, since it did not work properly even after repairs, the buyer has the right to reject it.

2. Right to a refund: Once the buyer rejects the television, they are entitled to a refund of the price paid. This includes not only the purchase price but also any additional expenses incurred in relation to the defective product, such as repair costs.

Conclusion:
In this case, the buyer has the right to reject the television and claim a refund of the price paid because the television was not merchantable due to the manufacturing defect. Therefore, option 'B' is the correct answer.
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M, a shopkeeper, sold a Television set to N, who purchased it in good faith. The set had some manufacturing defect and it did not work after a few days in spite of repairs. In this case, the television was not merchantable as it was not fit for ordinary purposea)the buyer has no right to reject the television.b)the buyer has the right to reject the television and to have refund of the price.c)both of the above.d)none of the above [(a) (b)]Correct answer is option 'B'. Can you explain this answer?
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M, a shopkeeper, sold a Television set to N, who purchased it in good faith. The set had some manufacturing defect and it did not work after a few days in spite of repairs. In this case, the television was not merchantable as it was not fit for ordinary purposea)the buyer has no right to reject the television.b)the buyer has the right to reject the television and to have refund of the price.c)both of the above.d)none of the above [(a) (b)]Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about M, a shopkeeper, sold a Television set to N, who purchased it in good faith. The set had some manufacturing defect and it did not work after a few days in spite of repairs. In this case, the television was not merchantable as it was not fit for ordinary purposea)the buyer has no right to reject the television.b)the buyer has the right to reject the television and to have refund of the price.c)both of the above.d)none of the above [(a) (b)]Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for M, a shopkeeper, sold a Television set to N, who purchased it in good faith. The set had some manufacturing defect and it did not work after a few days in spite of repairs. In this case, the television was not merchantable as it was not fit for ordinary purposea)the buyer has no right to reject the television.b)the buyer has the right to reject the television and to have refund of the price.c)both of the above.d)none of the above [(a) (b)]Correct answer is option 'B'. Can you explain this answer?.
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