Langston steals from MindGames, Inc., ten game players, which Langston sells to Nu2U Games store. Unaware that the players are stolen, Nu2U reconditions them and sells them to Online Distributors, Inc. With the reconditioned drives, Nu2U gives Online Distributors a written statement that disclaims "any and all warranties." MindGames learns that Online Distributors has the players and demands their return. Online Distributors gives the equipment to MindGames and files a suit against Nu2U. Will Online Distributors succeed in its suit? Why or why not?

Yes, Online Distributors will succeed in its suit against Nu2U.
Every contract for a sale of goods warrants that the title is good and its transfer is proper. This warranty of title arises automatically. The warranty can be excluded or modified only by a specific written statement in the contract. A general disclaimer is not effective-the disclaimer must be specific. In some cases, the circumstances may give the buyer reason to know that the transferor does not have title to the goods.
The transfer of the players from Nu2U to Online Distributors was a sale of goods. The warranty of title arose automatically. Nu2U's disclaimer was in writing, but it was not specific-it did not specifically disclaim that the title was good and its transfer proper. Also, under the circumstances described in this problem, Online Distributors had no reason to know that Nu2U did not have good title to the drives. In this situation, Nu2U warranted the title, breached that warranty in the sale to Online Distributors, and will lose the suit.