Also known as: implied warranty of merchantability · implied warranty of fitness · implied warranty of fitness for a particular purpose · UCC § 2-314 · UCC § 2-315
Written by attorneys · grounded in primary & secondary sources — see below
An implied promise arising by operation of law in a sale of goods by a merchant that the goods are fit for their ordinary purposes and pass without objection in the trade. A related implied promise arises when the seller has reason to know of the buyer's particular purpose and the buyer relies on the seller's skill or judgment to select suitable goods. In the sale of new residential construction the builder impliedly warrants that the home is constructed in a reasonably workmanlike manner and is suitable for human habitation.
Select any source to read its text and confirm it supports the definition.
Logan purchased a three-year-old solar-equipped home from Corey who had bought it new from East Wind. After moving in Logan discovered improper roof sealing around the panels that caused overheating and moisture damage. Logan sued East Wind for breach of the implied warranty of workmanlike construction and habitability even though Logan lacked privity with the builder.
Apex Braking Systems sent Metro Auto Parts a confirmation adding a bold disclaimer of all implied warranties after Metro's purchase order for brake pads. The disclaimer mentioned merchantability but was not conspicuous. When the pads later failed Metro sued Apex for breach of the implied warranty of merchantability.
Tenants in an apartment building leased units from First National Realty. The units contained numerous defects that made them unsafe for ordinary living. The tenants withheld rent and asserted that the landlord had breached implied warranties of fitness and merchantability arising from the lease treated as a contract.
Mr. Henningsen bought a new car from Bloomfield Motors. The steering failed shortly after purchase causing a serious accident. Henningsen sued the manufacturer and dealer claiming breach of the implied warranty of merchantability even though the purchase contract contained broad disclaimer language.
Kridel leased an apartment from Sommer under a written agreement. After Kridel abandoned the unit Sommer sued for unpaid rent. Kridel defended by asserting that the landlord had breached implied warranties of habitability that arose from treating the lease as a contract rather than a conveyance of property.
Becker rented an apartment from IRM Corp. A latent construction defect caused injury to Becker. Becker sued the landlord claiming breach of an implied warranty of habitability that attached to the rental of residential property even though the lease contained no express promise of quality.
The warranty arises automatically in a contract for the sale of goods if the seller is a merchant with respect to goods of that kind unless the warranty is properly excluded or modified. Merchantable goods must be fit for the ordinary purposes for which such goods are used and must pass without objection in the trade under the contract description.
To exclude or modify the implied warranty of merchantability the language must mention merchantability and in the case of a writing must be conspicuous. A broad disclaimer that fails to meet these requirements does not become part of the contract when it materially alters the parties' bargain in a battle of the forms between merchants.
…Marini v. Ireland , 56 N.J. 130 (1970) (implied covenant to repair); Reste Realty Corp. v. Cooper , 53 N.J. 444 (1969) (implied warranty of fitness of premises for leased purpose). In fact, in Reste Realty Corp. v. Cooper, supra , we specifically noted that the rule which we announced there did not comport with the historical notion…
…expectations of the buyer and have steadily widened the seller’s responsibility for the quality of goods and services through implied warranties of fitness and merchantability
…detailed review. Some portions of the UCC impose additional requirements on the way parties agree on terms. A disclaimer of the implied warranty of merchantability must be “conspicuous.” UCC § 2-316(2), incorporating UCC § 1-201(10). Promises to make firm offers, or to negate oral modifications, must be “separately signed.” UCC §§ 2-205, 2-209(2).…
…(1936) 7 Cal.2d 358, 360-361 [60 P.2d 855].) Also, prior to Greenman , it was held that a lessee could recover for breach of an implied warranty of fitness
Yes. The warranty arises only when the seller at the time of contracting has reason to know any particular purpose for which the goods are required and that the buyer is relying on the seller's skill or judgment to select or furnish suitable goods. The buyer must actually rely on that skill or judgment.
Courts are divided. Some jurisdictions permit subsequent purchasers to enforce the implied warranty of workmanlike construction and habitability against the original builder even without privity while others limit enforcement to those in direct privity with the builder.