The purchasing officer of Cloud 9, knitwear manufacturer, contacted Moral Fibres, wool processor, about purchasing 10 bags of ultra-fine Merino wool. The purchasing officer told the sales manager of Moral Fibres, that they required ultra-fine Merino wool that was traceable to a particular farm that engaged in sustainable farming practices. Cloud 9 specialises in making garments from ultra-fine Merino wool that can be traced to a particular farm using a unique code. It is through this unique selling point that Cloud 9 has been able to build a brand as a sustainable fashion label. The Cloud 9 purchasing officer made it clear that having wool which was traceable underpinned their brand strategy. The Moral Fibres sales manager explained that their supplier Black Sheep Farm engages in sustainable farming practices and is known for its high quality. Cloud 9 agrees to buy 10 bags full.

Cloud 9 receives the wool and begins manufacturing a special line of 'Black Sheep by Cloud 9' jumpers. They work with the fair-trade company 'Traceable' to document their supply chain and create the unique codes that trace the wool to a particular farm. Cloud 9 are shocked to find out that the wool they purchased was shorn by Shear Gall sheep farm and pooled with wool of the same grade from surrounding farms. This wool was then sold via Black Sheep to Moral Fibres. Cloud 9 cannot prove that the wool they have used in their garments is solely from sheep at Black Sheep Farm.

Cloud 9 would like advice as to any options for it to commence proceedings against Moral Fibres. What would you advise the most appropriate basis for a claim against Moral Fibres under the Sale of Goods Act would be?

Group of answer choices

Section 19(1) - the goods were not fit for purpose.

Section 19(2) - the goods were not of merchantable quality.