Final answer:
False. The neighbor cannot sue Sam for a breach of the implied warranty of merchantability because Sam is not a merchant selling the cordless drill as part of his regular business.
Step-by-step explanation:
False. In this scenario, Sam is not a merchant selling the cordless drill as part of his regular business. He is a high school English teacher who is simply selling his personal item at a garage sale. The implied warranty of merchantability only applies to merchants who sell goods in the regular course of their business. Since Sam is not a merchant, the neighbor cannot sue him for a breach of the implied warranty of merchantability.