When does the implied warranty of fitness for a particular purpose arise?

• A. If goods are used for any purpose.
• B. When the seller knows the buyer's particular purpose and the buyer relies on the seller's skill; goods must be fit for that purpose.
• C. If buyer expresses general need.
• D. Only in commercial sale.

Answer: (D)

The key idea is the criteria for the implied warranty of fitness for a particular purpose under the sale of goods rules. This warranty arises when the seller knows the buyer has a specific purpose for the goods and the buyer relies on the seller’s skill to select or furnish goods suitable for that purpose. If both conditions exist, the goods must be fit for that particular purpose.

This doesn’t require the sale to be commercial; it can come up in consumer transactions as well. It also isn’t triggered by a general need or by ordinary use of the goods without the seller’s specialized knowledge and the buyer’s reliance on that knowledge. So the correct understanding is that the warranty depends on the seller’s knowledge of the buyer’s particular purpose and the buyer’s reliance on the seller’s expertise, not on the sale being commercial or on a vague or general purpose.