Lee bought a new boat from R & K Marine and signed a standard purchase agreement. On the agreement, all in capital letters, it stated: "except to the extent required by state law, seller expressly disclaims all warranties, express or implied, including any implied warranty of merchantability or fitness for a particular purpose." Three years later, Lee took the boat in for repairs, when cracks and extensive deterioration were discovered in the hull. An appraiser determined that the problems were due to defects in manufacturing, and the boat was a complete loss. The manufacturer had gone out of business and was bankrupt, so Lee sued the retailer who sold him the boat, claiming breach of warranties of merchantability and fitness for a particular purpose. Defendant was granted summary judgment.
Lee appealed.

1. The appeals court affirmed that the warranty disclaimer was valid. There was no evidence that the retailer knew that the boat was junk, but suppose that could have been shown. How might that have changed the case?
2. Would there be any reason to sue the boat manufacturer?