Article 2 — Sales · Section 2-314
UCC § 2-314 addresses the implied warranty of merchantability in sales agreements, outlining the criteria under which goods are considered merchantable.
Source: U.C.C. § 2-314
Unless excluded or modified (Section 2-316), a warranty that the goods shall be merchantable is implied in a contract for their sale if the seller is a merchant with respect to goods of that kind.
UCC § 2-314 requires that, in sales by merchants, there is an automatic assurance that the goods sold are fit for the ordinary purposes for which such goods are used. This means that if a consumer buys a product from a seller who typically sells those kinds of products, they can expect it to be of acceptable quality.
A person or entity that regularly deals in goods of the kind sold or otherwise holds themselves out as having special knowledge or skill regarding such goods.
The property of goods that they are fit for the ordinary purpose for which such goods are used.
Example 1
A consumer purchases a blender from a well-known home appliance store. The blender breaks down after a week of normal use, and under UCC § 2-314, the consumer may have a claim based on the implied warranty of merchantability.
Example 2
A buyer purchases a batch of apples from a grocery store labeled as 'fresh'. If the apples are rotten upon purchase, the buyer can argue that the apples were not merchantable as they did not meet the standard expected for fresh goods.