IRAC Analysis 1
Question 1 IRAC
Adam steals from Business Resources, Inc., ten computer hard drives, which Adam sells
to Computer Products Corporation (CPC). Unaware that the drives are stolen, CPC reconditions
them and sells them to Direct Marketers, Inc. With the reconditioned drives, CPC gives Direct
Marketers a written statement that disclaims “any and all warranties.” Business Resources learns
that Direct Marketers has the drives and demands their return. Direct Marketers gives the
equipment to Business Resources and files a suit against CPC. Will Direct Marketers succeed in
its suit? Why or why not?
Issue
The issue, in this case, is whether CPC’s disclaimer of “any and all warranties”, when