Definition
Warranty of Merchantability
A Warranty of Merchantability is an implicit warranty that guarantees that the goods being sold are reasonably fit for the general purposes for which they are sold. This type of warranty is assumed to exist in sales contracts for goods unless explicitly disclaimed by the seller. It ensures that products will perform as expected given their ordinary use.
Examples
Appliance Sale: When a consumer purchases a refrigerator, the warranty of merchantability implicitly promises that the refrigerator will keep food cold.
Automobile Purchase: If buying a car, this warranty ensures the car is safe to drive and functions according to common expectations of an automobile.
Clothing Purchase: For clothing, this warranty implies that the clothes will not fall apart under normal use and care.
Frequently Asked Questions
What is the difference between a Warranty of Merchantability and an express warranty?
An express warranty is explicitly stated, verbally or in writing, and outlines specific promises about the product. A warranty of merchantability is implied and not specifically listed in the sales contract but understood by law to be present in the sale of goods.
Can the Warranty of Merchantability be disclaimed?
Yes, sellers can disclaim this warranty, but they must do so conspicuously – typically with clear written disclaimers.
What are the buyer’s rights if a product breaches the Warranty of Merchantability?
The buyer can seek remedies such as repair, replacement, or refund if the goods fail to meet the obligations set out by the warranty of merchantability.
Does the Warranty of Merchantability apply to used goods?
It can apply, but the scope may be limited depending on the nature of the sale and the condition of the goods.
How long does the Warranty of Merchantability last?
The duration varies by jurisdiction but typically lasts for a reasonable amount of time considering the expected lifespan of the product.
Related Terms
- Express Warranty: A clearly articulated warranty stipulated by the seller, either verbally or in writing.
- Implied Warranty: A warranty not explicitly stated but assumed to exist under the law.
- Warranty of Fitness for a Particular Purpose: A warranty that applies when the buyer relies on the seller’s expertise to select goods for a specific use.
- Merchant: A person or business that regularly deals in the goods being sold and is knowledgeable about those goods.
Online References
- Investopedia: Warranty of Merchantability Explained
- Legal Information Institute: Uniform Commercial Code (UCC) - Warranty of Merchantability
- Federal Trade Commission (FTC): Consumer Rights and Warranties
Suggested Books for Further Studies
- “Warranties and Disclaimers: A New Perspective” by Wolfgang Weitzel
- “Understanding Warranty Law” by Keston Newell
- “Business Law: Text and Cases” by Kenneth W. Clarkson, Roger LeRoy Miller, and Frank B. Cross
Fundamentals of Warranty of Merchantability: Business Law Basics Quiz
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