Article 2 — Sales · Section 2-104
This section of the UCC defines key terms and roles related to the parties involved in a sales transaction.
Source: U.C.C. § 2-104
In this Article, "merchant" means a person who deals in goods of the kind or otherwise by his occupation holds himself out as having knowledge or skill peculiar to the practices or goods involved in the transaction or to whom such knowledge or skill may be attributed by his employment of an agent or broker or other intermediary who by occupation holds himself out as having such knowledge or skill.
UCC § 2-104 defines a 'merchant' in the context of sales transactions as an individual or entity that is involved in the buying and selling of goods or has specialized knowledge related to these goods. This definition is crucial for distinguishing how merchants and non-merchants may be treated differently under the law.
A person or entity that deals in goods of the kind involved in a sales transaction, or has special knowledge or skill related to those goods.
All things that are movable at the time of identification to the contract for sale.
Example 1
A company that regularly sells electronics is considered a merchant because it deals in goods of that kind.
Example 2
An individual selling homemade crafts at a market may not be deemed a merchant unless they hold themselves out as having specialized knowledge or skill regarding those goods.