Also known as:merchantability warranties · warranty of merchantability · warranties of merchantability · implied warranty of merchantability
Written by attorneys · grounded in primary & secondary sources — see below
An implied warranty that arises by operation of law in a contract for the sale of goods by a merchant seller and requires that the goods be fit for their ordinary purposes and pass without objection in the trade under the contract description.
Sources & Authorities
How it applies
Common Examples
6
Failed Disclaimer Attempt
Meridian Motors sold a fleet of delivery vans to Melanie Morris under a written contract containing a clause stating only that the vans were sold as is. The vans repeatedly failed to start in ordinary city driving conditions. Because the clause never mentioned merchantability and was not conspicuous, the implied warranty remained in force and Morris recovered for the breach.
Off-Road Design Meets On-Road Use
Mariam Mansour bought a sport utility vehicle from Momentum Capital for daily commuting on paved highways. The vehicle rolled over during a routine lane change. The court held that the vehicle failed the ordinary-purpose standard of the merchantability warranty even though it had been designed for off-road driving.
Select any source to read its text and confirm it supports the definition.
Uniform Acts
Hornbooks
Denny v. Ford Motor Co.87 N.Y.2d 248, 639 N.Y.S.2d 250, 662 N.E.2d 730, 736 (1995)
Cigarette Warnings and Warranty Claims
Miguel Mendoza purchased cigarettes manufactured by a major tobacco company and later developed lung cancer. He sued alleging breach of the implied warranty of merchantability. The court examined whether federal warning requirements displaced the state warranty claim arising from the product's ordinary use.
Cipollone v. Liggett Group, Inc.893 F.2d 541 (3d Cir.1990), affirmed in part and reversed in part, 505 U.S. 504 (1992)
Tool Vibration Exceeds Trade Standards
Monica Morgan bought industrial grinders from Magnolia Foods for use on an assembly line. The grinders produced excessive vibration that caused worker fatigue and injury during normal operation. Because the tools did not pass without objection in the trade, the merchantability warranty was breached.
Flexible Pipe Fails Ordinary Pressure
Melissa Mills installed flexible gas piping purchased from a plumbing supplier in a commercial kitchen. The piping ruptured under normal operating pressure, causing an explosion. The court applied the merchantability warranty to determine whether the product met ordinary expectations for gas-line use.
Tincher v. Omega Flex, Inc.104 A.3d 328 (Pa. 2014)
Breast Implant Material Degrades
Megan Moore received silicone breast implants manufactured by a medical device company. The implants leaked and caused systemic illness during ordinary use. The court assessed whether the product satisfied the merchantability warranty given its failure to perform safely over time.
What standard must goods meet to satisfy the implied warranty of merchantability?+
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. Abnormal wear, brake fade, or an unusually high proportion of broken kernels demonstrate failure to meet that standard.
Supporting sources
Does a seller's description of goods create an express warranty separate from merchantability?+
Yes. A precise description such as industrial-grade, rust-resistant steel sheets meeting premium corrosion standards becomes an express warranty when it forms part of the basis of the bargain. Breach occurs when delivered goods fail to match the description regardless of any implied warranty analysis.
Supporting sources
How does a seller exclude the implied warranty of merchantability?+
The exclusion language must mention merchantability and, if in writing, must be conspicuous. A clause that merely states the goods are sold as is fails to exclude the warranty because it neither names merchantability nor satisfies the conspicuousness requirement.
Supporting sources
32 N.J. 358, 161 A.2d 69 (1960)Torts
…negligence counts were dismissed by the court and the cause was submitted to the jury for determination solely on the issues of implied warranty of merchantability. Verdicts were returned against both defendants and in favor of the plaintiffs. Defendants appealed and plaintiffs cross-appealed from the dismissal of their negligence claim. The matter…
TortsNegligence · The duty question, including failure to act, unforeseeable plaintiffs, and obligations to control the conduct of third partiesUBEIntermediate