Also known as: warranties of merchantability · implied warranty of merchantability · UCC 2-314 · merchantability warranty
Written by attorneys · grounded in primary & secondary sources — see below
An implied warranty arising by operation of law in a sale of goods by a merchant that the goods are fit for the ordinary purposes for which such goods are used. The warranty attaches automatically when the seller deals in goods of that kind and is not displaced unless the parties agree otherwise under the governing disclaimer rules.
Wren Wright purchased a new laptop from Warwick Electronics. The sales receipt contained fine-print language stating only that the laptop was sold as is. When the laptop repeatedly failed to boot, Wren sued for breach of the warranty of merchantability. The court held the disclaimer ineffective because it neither mentioned merchantability nor appeared conspicuously.
Winona Walsh bought a new sedan from a dealership. Within days the steering mechanism locked during normal highway driving, causing an accident. Winona sued the dealer and manufacturer alleging breach of the warranty of merchantability. The court allowed recovery because the vehicle was unfit for ordinary driving purposes at the time of sale.
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Winter Wolfe purchased software from an online retailer. After installation the license terms inside the package purported to limit all warranties. When the program crashed during ordinary use, Winter sued. The court enforced the warranty of merchantability because the post-sale terms did not validly disclaim it under applicable rules.
Wallace Webb smoked cigarettes for decades and later developed lung cancer. He sued the manufacturer claiming the product breached the warranty of merchantability because it was unreasonably dangerous for ordinary use. The court analyzed whether the warranty claim survived federal preemption rules governing product warnings.
Wayne Walker purchased an SUV marketed for ordinary family use. The vehicle rolled over during a routine highway lane change. Wayne sued the manufacturer for breach of the warranty of merchantability. The court examined whether the design rendered the vehicle unfit for its ordinary transportation purpose.
William Williams bought a pneumatic grinder from a tool supplier. During ordinary workshop use the tool vibrated excessively and caused injury. William sued alleging breach of the warranty of merchantability. The court considered whether the tool met ordinary safety expectations for tools of that kind.
A disclaimer must mention the word merchantability. If the disclaimer is in writing it must also be conspicuous. General language such as as is may suffice only when the circumstances make clear that all implied warranties are excluded.
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The warranty arises automatically when a merchant sells goods of the kind in which the merchant deals. It is implied by law and does not require any express statement by the seller.
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Goods breach the warranty when they are not fit for the ordinary purposes for which such goods are used. The test focuses on whether the goods would pass without objection in the trade under ordinary conditions.
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The warranty can apply to used goods when the seller is a merchant with respect to goods of that kind. Courts examine whether the used item meets ordinary expectations for goods of similar age and condition.
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Merchantability requires goods to be fit for ordinary purposes. Fitness for a particular purpose requires the seller to know the buyer's specific purpose and the buyer's reliance on the seller's skill or judgment to select suitable goods.
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…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…