Implied Warranty of Merchantability

Implied Warranty of Merchantability

Implied Warranty of Merchantability

Under UCC Article 2, a merchant seller impliedly warrants that goods are merchantable: they pass without objection in the trade, are of fair average quality, and are fit for their ordinary purposes.

The warranty may be disclaimed by conspicuous language mentioning merchantability, or by terms such as as is where permitted.

Alternative Names:

Merchantability Warranty, Implied Warranty

Why it Matters?

Merchantability claims are frequently pleaded alongside strict liability because they can survive where defect proof is difficult, requiring only that the product not be fit for ordinary use. The defenses are largely contractual: an effective conspicuous disclaimer, lack of privity in states retaining it, and failure to give timely notice of breach. Consumer protection statutes limit disclaimers in many states for consumer goods.

Frequently Confused with

Related terms

Frequently asked questions

Can the warranty be disclaimed?

Can the warranty be disclaimed?

Yes, by conspicuous language mentioning merchantability or by terms such as as is, though consumer protection statutes restrict disclaimers for consumer goods in many states.

How does merchantability differ from fitness for a particular purpose?

How does merchantability differ from fitness for a particular purpose?

Merchantability concerns ordinary use. Fitness for a particular purpose arises when the seller knows the buyer's specific purpose and the buyer relies on the seller's expertise.