What is the definition of merchantability?
: of commercially acceptable quality : characterized by fitness for normal use, good quality, and accord with any statements or promises made on the packaging or label merchantable goods — see also implied warranty and warranty of merchantability at warranty sense 2a.
What is an example of a warranty of merchantability?
In every sale between a merchant and a consumer, there exists an implied warranty of merchantability. This means that the goods bought will be fit for their ordinary use. For example, if you buy a golf club from a golf shop, there is an implied warranty in the sale that the golf club will perform as it was designed to.
What does warranties of merchantability mean?
A warranty of merchantability is a type of warranty that asserts that the goods are reasonably fit for its ordinary and intended purpose for which they are sold. An implied warranty of merchantability is defined in U.C.C. § 2-314.
What is a warranty of merchantability and fitness for a particular purpose?
The two key types of implied warranties are merchantability and fitness. Merchantability says that a product will meet reasonable expectations of the buyer, while fitness means the product meets the buyer’s intended use.
What is a warranty of fitness?
A warranty of fitness is a type of warranty that asserts that the goods are suitable for the special purpose of the buyer, and such warranty will not be satisfied by mere fitness for general purposes.
What does the term merchantability mean quizlet?
merchantability. warranty by a merchant seller that the goods are reasonably fit for the ordinary purpose for which they are manufactured or sold, pass without objection in the trade under the contract description and are of fair average quality.
What is fitness warranty?
What is the difference between a warranty of merchantability and an implied warranty of fitness?
What are the warranties of merchantability and fitness?
How can implied warranties of merchantability and fitness for a particular purpose be disclaimed?
To disclaim the warranty of merchantability in the relevant agreement, the written contract must contain a conspicuous disclaimer that either: (1) expressly identifies “merchantability” or (2) includes an expression stating that the goods are sold “as is” or “with all faults.”
What is fitness for a particular purpose?
The warranty of fitness for a particular purpose is implied when a buyer relies upon the seller to select the goods to fit a specific request. For example, this warranty is violated when a buyer asks a mechanic to provide snow tires and receives tires that are unsafe to use in snow.
What is meant by fitness for purpose and merchantability?
Fitness for purpose and merchantability. In day-to-day business contracts, warranties related to fitness for a particular purpose and ascertaining the merchantability of the products are very common. Also the opposite, that such warranties are specifically disclaimed, is common practice.
What is the meaning of merchantability?
Noun. 1. merchantability – the state of being fit for market; ready to be bought or sold. state – the way something is with respect to its main attributes; “the current state of knowledge”; “his state of health”; “in a weak financial state”.
What is an example of merchantable quality?
For example, soap is merchantable if it cleans. In general, a seller or manufacturer is required by law to make products of merchantable quality. In the event that the items do not meet with the proper standards, a suit can be brought against the seller or manufacturer by anyone who is injured as a result.
Should merchantability be limited to goods used for ordinary use?
The policy behind limiting the implied warranty of merchantability to the goods’ ordinary use is also straightforward: a seller may not have sufficient expertise or control over a product to ensure that it will perform properly when used for nonstandard purposes.