In MAN Engines & Components, Inc. v. Shows, No. 12-0490 (Tex. June 6, 2014), plaintiff sued the manufacturer of the failed engine on a yacht plaintiff had purchased used, alleging that the defendant had breached its implied warranty of merchantability.  After the jury found for the plaintiff, the trial court granted defendant judgment notwithstanding the verdict, ruling that the defendant could not be held liable on the implied warranty theory by a subsequent purchaser, and that the defendant had expressly disclaimed that implied warranty.  The court of appeals reversed on both grounds, holding that the defendant had waived the express disclaimer ground by failing to plead it as an affirmative defense and that the implied warranty may pass to the subsequent purchaser.  The Texas Supreme Court affirmed, holding that a merchant that disclaims implied warranties at the first sale cannot be held liable for a breach of those warranties by a subsequent purchaser, but where an implied warranty is not disclaimed at the first sale, the legal duty to make and sell merchantable goods does not end with the first purchaser, and may be asserted by a subsequent purchaser.