MBE Rules · Contracts
Implied Warranty of Merchantability
UCC §2-314
The rule
Every sale by a merchant in goods of that kind carries an implied warranty that the goods are fit for their ordinary purpose and pass without objection in the trade.
In plain English
The Implied Warranty of Merchantability ensures that goods sold by a merchant are suitable for their usual purpose and meet the standard expectations of quality. This means that when you buy something from a merchant, it should work as you would normally expect it to.
Worked example
A customer buys a toaster from a well-known appliance store. After using it for a week, the toaster fails to heat up, rendering it unusable. The customer can successfully claim a breach of the Implied Warranty of Merchantability because the toaster did not perform its ordinary function of toasting bread.
Memory hook
Merchantability means the goods should work as expected!
The trap
Exams often include scenarios where goods are slightly defective but still usable, leading students to mistakenly believe there is no breach of warranty. It's important to focus on whether the goods are fit for their ordinary purpose.
How examiners test it
Questions typically present a fact pattern involving a sale of goods and ask whether the goods meet the standards of merchantability, often highlighting defects or issues that affect ordinary use.
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