Question

Bariven, S.A., agreed to buy 26,000 metric tons of powdered milk for $123.5 million from Absolute Trading Corp. to be delivered in shipments from China to Venezuela. After the first three shipments, China halted dairy exports due to the presence of melamine in some products. Absolute assured Bariven that its milk was safe, and when China resumed dairy exports, Absolute delivered sixteen more shipments. Tests of samples of the milk revealed that they contained dangerous levels of melamine. Did Absolute breach any implied warranties

Answer 1

Yes they did

Step-by-step explanation:

There are various rules which governs warranties of goods. In this case, the implied warranty is involved. Warranties are a duty that are imposed by the party that is selling.

Absolute had knowledge of what the milk was intended for. Bariven on the other hand relied on assurances and judgement from Absolute. Milk with high level of melamine is not okay for humans to consume. Absolute knew this.

So in conclusion, absolute assured bariven the milk had no harmful levels of melamine but this was discovered to be untrue.

Therefore there is a breach of implied warranty.