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Priety, a manufacturer of chairs, sold 150 chairs to Shilpa, the owner of a furniture shop. This sale was made after both the parties entered

Priety, a manufacturer of chairs, sold 150 chairs to Shilpa, the owner of a furniture shop. This sale was made after both the parties entered into a contract. The term of the contract read, "Seller hereby disclaims all implied warranties." Unlike the rest of the contract, this term was written in all capital letters and placed prominently in the document. In this scenario, Priety has effectively made a disclaimer of:

  • the implied warranty of merchantability, but not the implied warranty of fitness for a particular purpose.
  • neither the implied warranty of merchantability nor the implied warranty of fitness for a particular purpose.
  • the implied warranty of merchantability and the implied warranty of fitness for a particular purpose.
  • the implied warranty of fitness for a particular purpose, but not the implied warranty of merchantability.

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