Man Engines & Components, Inc. and Man Nutzfahrzeuge Aktiengesellschaft v. Doug Shows

This breach-of-warranty case poses a fundamental question: Does the implied warranty of merchantability extend to pur chasers of used goods? Our answer: It depends.

A manufacturer largely controls its own fate. When a manufacturer disclaims implied warranties, such express language necessarily applies downstream to subsequent purchasers, as Buyer # 2 cannot tenably boast a greater warranty than that given to Buyer # 1.

But some manufacturers, intentionally or inadvertently, do not expressly disclaim implied warranties. That scenario raises two questions:

1. Does resale of a used good…