What does the implied warranty of merchantability mean?
An implied warranty of merchantability is a type of warranty defined in U.C.C. § 2-314. U.C.C. § 2-314(1) states that, unless otherwise excluded or modified, a warranty that the goods are merchantable is implied in a contract for sale if the seller is a merchant of these sorts of goods.
What is the difference between a warranty of merchantability and an implied warranty of fitness?
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 an example of implied 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 is an example of implied warranty of fitness?
For example, if a farmer goes to a farm supply store, and tells the salesman he needs a plow for the rocky soil of his farm, and the salesman directs him to a particular plow, there may be an implied warranty that the plow in question is fit for use in rocky soil.
What is the meaning of merchantability?
Legal Definition of merchantable : 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.
Is merchantability a word?
adj. Suitable for buying and selling; marketable. mer′chant·a·bil′i·ty n.
What is warranty of fitness for a particular purpose?
The implied warranty of fitness for a particular purpose refers to a warranty that is implied when the buyer informs the seller that he is purchasing a product for a specific purpose or when the seller has otherwise been made aware that the buyer has a specific reason for buying the product.
Is the implied warranty of merchantability waivable?
However, this implied warranty of merchantability can be waived when the buyer has examined the goods, sample, or model as fully as desired or when the buyer refused to examine the goods, there is no implied warranty of merchantability with regard to defects that should have been revealed by examination.
Who does implied warranty of merchantability apply to?
An implied warranty of merchantability is defined in U.C.C. § 2-314. U.C.C. § 2-314(1) states that unless excluded or modified, a warranty that goods shall be merchantable is implied in a contract for sale if the seller is a merchant with respect to goods of that kind.
What is fitness warranty?
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 is merchantability mean?
: 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 implied warranty of merchantability?
An implied warranty of merchantability is an unwritten and unspoken guarantee to the buyer that goods purchased conform to ordinary standards of care and that they are of the same average grade, quality, and value as similar goods sold under similar circumstances.
What is an implied warranty of fitness for a particular purpose?
An implied warranty of fitness for a particular purpose or implied warranty of fitness refers to a warranty implied by law that if a seller knows or has reason to know of a particular purpose for which some item is being purchased by the buyer, the seller is guaranteeing that the item is fit for that particular purpose.
What are the different types of implied warranties?
Implied warranties come in two general types: merchantability and fitness. An implied warranty of merchantability is an unwritten and unspoken guarantee to the buyer that goods purchased conform to ordinary standards of care and that they are of the same average grade, quality, and value as similar goods sold under similar circumstances.
What is the difference between merchantability and fitness?
Unlike the implied warranty of merchantability, the implied warranty of fitness does not contain a requirement that the seller be a merchant with respect to the goods sold. It merely requires that the seller possess knowledge and expertise on which the buyer may rely.