Also known as: implied warranties of merchantability and fitness · UCC 2-314 · UCC 2-315 · implied warranty of merchantability · implied warranty of fitness
Written by attorneys · grounded in primary & secondary sources — see below
2 senses
An implied warranty arising by operation of law in a contract for the sale of goods when the seller is a merchant with respect to goods of that kind that the goods are fit for the ordinary purposes for which such goods are used.
A related implied warranty arises when the seller at the time of contracting has reason to know any particular purpose for which the goods are required and that the buyer is relying on the seller's skill or judgment to select or furnish suitable goods.
Each sense below has its own examples, sources, and questions.
An implied warranty arising by operation of law in a contract for the sale of goods when the seller is a merchant with respect to goods of that kind that the goods are fit for the ordinary purposes for which such goods are used.
Select any source to read its text and confirm it supports the definition.
Logan purchased a home three years after East Wind completed construction and sold it to the first owner. The solar panel roof penetrations leaked and caused unsafe overheating. Logan sued East Wind for breach of the implied warranty of merchantability. The court dismissed the claim because the home was no longer new at the time of the second sale and Logan lacked privity with the builder.
Apex mailed an acknowledgment confirming Metro's order for brake pads and added a conspicuous clause stating there are no warranties extending beyond the description on the face of the document. Metro later discovered defective pads. The court held the disclaimer ineffective because it failed to mention merchantability and was not conspicuous as required to exclude the implied warranty.
A buyer sued Ford after a Bronco II rolled over during an unintended but foreseeable use. The jury found the vehicle not defective for negligence and strict liability purposes but found a breach of the implied warranty of merchantability. The court upheld the verdict because the warranty claim addresses fitness for foreseeable uses even when the product is not defective under tort standards.
The warranty arises automatically in a contract for the sale of goods if the seller is a merchant with respect to goods of that kind. Merchantable goods must be fit for the ordinary purposes for which such goods are used and must pass without objection in the trade.
Supporting sources
To exclude or modify the implied warranty of merchantability the language must mention merchantability and in the case of a writing must be conspicuous. A general statement that there are no warranties extending beyond the description on the face of the document is insufficient unless it meets these requirements.
Supporting sources
A related implied warranty arises when the seller at the time of contracting has reason to know any particular purpose for which the goods are required and that the buyer is relying on the seller's skill or judgment to select or furnish suitable goods.
Select any source to read its text and confirm it supports the definition.
The fitness warranty requires that the seller have reason to know the buyer's particular purpose and that the buyer is relying on the seller's skill or judgment. Merchantability requires only that goods be fit for ordinary purposes and does not depend on the buyer's specific reliance or the seller's knowledge of a special use.
Supporting sources
…negligence counts were dismissed by the court and the cause was submitted to the jury for determination solely on the issues of implied warranty of merchantability. Verdicts were returned against both defendants and in favor of the plaintiffs. Defendants appealed and plaintiffs cross-appealed from the dismissal of their negligence claim. The matter…
…detailed review. Some portions of the UCC impose additional requirements on the way parties agree on terms. A disclaimer of the implied warranty of merchantability must be “conspicuous.” UCC § 2-316(2), incorporating UCC § 1-201(10). Promises to make firm offers, or to negate oral modifications, must be “separately signed.” UCC §§ 2-205, 2-209(2).…
…and manufactured so as to be reasonably safe for its intended and foreseeable uses may nonetheless be held liable for breach of implied warranty of merchantability
…holding no cause of action for alcohol addiction claim based on products liability, misrepresentations, negligence, breach of implied warranties of merchantability and fitness
…N.J.L. 21 (E. & A. 1939), the Court held that under the Uniform Sale of Goods Law, R.S. 46:30-21(1), which provided for an implied warranty of fitness
Workers used pneumatic tools purchased from Chicago Pneumatic in ordinary industrial applications. The tools caused injury due to defects that made them unfit for those routine tasks. The court held that the implied warranty of merchantability required the tools to be fit for ordinary purposes even if the buyer had not specified a particular purpose.
A smoker sued Liggett alleging that cigarettes failed to meet the implied warranty of merchantability because they caused cancer. The court addressed whether federal cigarette labeling laws preempted the state warranty claim. The analysis turned on whether the warranty claim imposed requirements beyond the federal standard.
A buyer purchased flexible gas piping from Omega Flex for use in a residential heating system. The piping ruptured under ordinary pressure. The court evaluated whether the implied warranty of merchantability was breached because the goods were unfit for their ordinary purpose of safely conveying gas in home installations.
A broad disclaimer of all implied warranties is treated as a material alteration. It does not become part of the contract unless the buyer expressly agrees to it. The buyer may still pursue a claim for breach of the implied warranty of merchantability.
Supporting sources