Karen decided to sell her stair step exerciser, because she wasn't using it as much as she thought she would. Her friend Lydia bought it from Karen for $100. The first day that Lydia used the exerciser, it fell apart, injuring Lydia's ankle. Lydia:

a. can sue Karen for breach of the warranty of merchantability, because the exerciser is not fitfor the ordinary purpose intended.
b. cannot sue Karen for breach of the warranty of merchantability, because Karen did not expressly warrant the quality of the exerciser.
c. cannot sue Karen for the warranty of merchantability because Karen is not a merchant.
d. cannot sue Karen, because they are not in privity of contract.

The correct answer is letter "C": cannot sue Karen for the warranty of merchantability because Karen is not a merchant.

Explanation:

A warranty of merchantability is an implied unwritten and unspoken warranty stating that consumers of products are to give use and care of those goods according to the purpose of what the product was made and that the good must meet an average quality and value compared to similar products. If the product has failures, the consumer could suit the merchant for providing a good that does not meet with its inherent benefits.

Thus, as Lydia bought the stair-step exerciser from Karen, she cannot sue Karen under warranty of merchantability after it fell apart since Karen is not a merchant.

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o