Final answer:
Express and implied warranties can coexist for the same goods in a single transaction, and this is true. Both types of warranties offer different assurances that protect the buyer, and service contracts can provide additional coverage without displacing these warranties.
Step-by-step explanation:
The statement expresses that express and implied warranties do not cancel each other out because it is possible for both to apply to the same goods in a single transaction. This is true; it is common for goods to be covered by multiple warranties simultaneously, providing various levels of protection or assurance to the buyer. For example, an express warranty might provide a specific promise about the item's condition for a certain period, while an implied warranty, such as merchantability, guarantees that the item is fit for sale and will work for its intended purpose.
Sellers may offer additional options such as service contracts, which are agreements where the buyer pays an extra amount for extended repair or maintenance services. These options do not negate the existence of warranties but can supplement them, adding another layer of reassurance for the buyer regarding the longevity and serviceability of their purchase.