Merchantability

Merchantability in the United States

Implied Warranty of Merchantability

Definition in Plain-English Law

Implied Warranty Of Merchantability as defined by Nolo’s Encyclopedia of Everyday Law (p. 437-455): An implied warranty that a new item will work for its specified purpose.

Implied Warranty of Merchantability in Products Liability

Section 2-314 of the UCC lays down the fundamental rule that goods carry an implied warranty of merchantability if sold by a merchant-seller. What is merchantability? Section 2-314(2) of the UCC says that merchantable goods are those that conform at least to the following six characteristics:

  • Pass without objection in the trade under the contract description
  • In the case of fungible goods, are of fair average quality within the description
  • Are fit for the ordinary purposes for which such goods are used
  • Run, within the variations permitted by the agreement, of even kind, quality, and quantity within each unit and among all units involved
  • Are adequately contained, packaged, and labeled as the agreement may require
  • Conform to the promise or affirmations of fact made on the container or label, if any

For the purposes of Section 2-314(2)(c) of the UCC, selling and serving food or drink for consumption on or off the premises is a sale subject to the implied warranty of merchantability—the food must be “fit for the ordinary purposes” to which it is put. The problem is common: you bite into a cherry pit in the cherry-vanilla ice cream, or you choke on the clam shells in the chowder. Is such food fit for the ordinary purposes to which it is put? There are two schools of thought. One asks whether the food was natural as prepared. This view adopts the seller’s perspective. The other asks what the consumer’s reasonable expectation was.

The first test is sometimes said to be the “natural-foreign” test. If the substance in the soup is natural to the substance—as bones are to fish—then the food is fit for consumption. The second test, relying on reasonable expectations, tends to be the more commonly used test.

The Convention provides (Article 35) that “unless otherwise agreed, the goods sold are fit for the purposes for which goods of the same description would ordinarily be used.” (1)

Resources

Notes

  1. “Business and the Legal Environment”, by Don Mayer, Daniel M. Warner and George J. Siedel.

See Also

Implied warranty

Merchantability (Warranties)

This section introduces, discusses and describes the basics of merchantability. Then, cross references and a brief overview about Warranties is provided. Finally, the subject of Sales in relation with merchantability is examined. Note that a list of cross references, bibliography and other resources appears at the end of this entry.


Posted

in

, ,

by

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *