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XYZ Company asks a specialized fastener supplier for its help in choosing a fastener for a new product. The supplier recommends its proprietary part for the application. After several months of production, many field issues are reported due to loose fasteners. The supplier refuses to take responsibility, claiming that the blame lies with XYZ. In this situation, which of the following is TRUE?
Correct Answer: C
When a supplier recommends a specific part for an application, and the buying firm relies on this expertise, an implied warranty for fitness for a particular purpose is established. This means the supplier is responsible for ensuring the part is fit for the intended use. Even if the explicit requirements were not detailed, the supplier's recommendation implies a guarantee of suitability. If the fasteners fail, the supplier can be held accountable under this implied warranty. References: Uniform Commercial Code (UCC) Article 2 on Sales, warranty sections, and relevant case law on implied warranties.