Seller Liability for Latent Defects Rebuttable Presumption of Knowledge

A trial court found a seller liable for damages to a buyer after a sale was voided due to a defect in the item sold, which the seller claimed was unknown, and the appellate court upheld this decision, reasoning that the seller, as a professional in the trade, had an obligation to know the quality of the goods sold and that ignorance of the defect did not exempt them from liability for warranty against latent defects. The high court quashed the appellate decision, finding that while a professional seller is presumed to know the defects, this presumption is rebuttable, and the appellate court erred by not examining evidence presented by the seller attempting to show their good faith and lack of knowledge concerning the specific, unknown latent defect that caused the voiding of the sale.