Mr. Sameer, a retail shopkeeper, purchased 10 cartons of packaged fruit juice bottles from Fresh Foods Ltd., a reputed beverage dealer. The cartons…
CA Foundation · Business Laws · RTP · May 2026
Mr. Sameer, a retail shopkeeper, purchased 10 cartons of packaged fruit juice bottles from Fresh Foods Ltd., a reputed beverage dealer. The cartons were sealed and appeared to be in good condition, and therefore Sameer accepted them without objection. Subsequently, when the bottles were sold to customers, it was discovered that several of them were contaminated with fungus. A few customers even fell ill after consuming the juice, compelling Sameer to issue refunds and causing significant reputational damage to his business. When Sameer demanded a refund and compensation from Fresh Foods Ltd., the seller refused, contending that the goods had been sealed and were accepted by him at the time of delivery. Examine whether Sameer can succeed in his claim under the Sale of Goods Act, 1930.
Suggested Answer and Working Notes:
As per Section 16 (2) of the Sale of Goods Act,1930, when goods are bought by description from a seller who deals in goods of that description, there is an implied condition that the goods shall be of merchantable quality. In addition, in case of eatables and consumable goods, there is an implied condition as to wholesomeness, i.e., the goods must be fit for human consumption. Where such goods are harmful or dangerous to health, the buyer is entitled to reject them and also claim damages. In this case, Sameer purchased fruit juice bottles from Fresh Foods Ltd. The cartons were sealed and appeared proper from outside. However, when consumed, they were found contaminated, making them harmful for human health. Customers who consumed them became sick, and Sameer suffered both financial and reputational loss. Fresh Foods Ltd. denied liability citing that the cartons were sealed and accepted. On the basis of the above provisions and facts, the juice bottles were not of merchantable quality and also failed the implied condition of wholesomeness. It was the duty of the seller to ensure that food products supplied were fit for human consumption. Hence, Sameer is entitled to reject the goods, recover the price, and also claim damages for the loss suffered. The seller cannot escape liability merely because the cartons were sealed.
Topics: The Sale of Goods Act, 1930
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