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What is established when a retailer knows the purpose of consumer goods and the buyer relies on their judgment?

  1. There shall be an expressed warranty

  2. There is an implied warranty of fitness

  3. There is an implied warranty for 6 months

  4. All the above are correct

The correct answer is: There is an implied warranty of fitness

The correct answer focuses on the concept known as the implied warranty of fitness. This principle comes into play when a retailer has knowledge about the specific purpose for which a consumer intends to use a product. If the buyer relies on the retailer's judgment to select a product suitable for that particular purpose, the retailer is implicitly assuming that the product will meet that need. In this context, the implied warranty of fitness ensures that the goods sold are fit for the purpose intended. This type of warranty does not need to be explicitly stated; rather, it arises from the circumstances of the sale where the retailer's expertise is called upon by the buyer. The presence of this warranty serves to protect consumers, ensuring that they receive products that meet their specific expectations based on the advice given. On the other hand, an expressed warranty involves explicit guarantees made regarding a product's quality or performance, which doesn’t apply if it is solely based on the buyer's reliance on the retailer's judgment. The implied warranty for a specific duration, such as six months, is not a standard condition unless specified by law or contract, and thus doesn't align with the principles outlined in the scenario. Therefore, the correct answer encapsulates the essential legal principle that acknowledges the reliance of the buyer on the seller