Also known as:UCC § 2-314 · U.C.C. 2-314 · UCC 2-314 · § 2-314 · implied warranty of merchantability
Written by attorneys · grounded in primary & secondary sources — see below
A statutory rule providing that, to exclude or modify the implied warranty of merchantability or any part of it, the language must mention merchantability and, if in a writing, must be conspicuous.
Sources & Authorities
How it applies
Common Examples
6
Failed Disclaimer Attempt
Uri Underwood purchased industrial sensors from Ultra Precision. The seller's acknowledgment form contained a disclaimer of all implied warranties printed in ordinary type on the back page. When the sensors failed during routine factory use, Uri Underwood sued for breach of the implied warranty of merchantability. The court held that the disclaimer did not exclude the warranty because it neither mentioned merchantability nor appeared conspicuously.
Vehicle Design and Merchantability
Ulf Ulfsson bought a sport utility vehicle from United Bank as part of a fleet purchase. The vehicle rolled over during an ordinary highway lane change that other similar vehicles handled without incident. Ulf Ulfsson sued the manufacturer alleging breach of the implied warranty of merchantability. The court permitted the jury to find that the vehicle failed to meet ordinary expectations for safe highway use even though it passed a separate risk-utility test.
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Uniform Acts
Study Supplements
Denny v. Ford Motor Co.87 N.Y.2d 248, 639 N.Y.S.2d 250, 662 N.E.2d 730, 736 (1995)
Tool Performance Under Normal Use
Ursula Upton purchased pneumatic tools from Upland Industries for use in an automotive repair shop. The tools vibrated excessively and caused hand injuries during standard daily operations that comparable tools performed without issue. Ursula Upton sued alleging breach of the implied warranty of merchantability. The court evaluated whether the tools met the ordinary-purpose standard under the warranty.
Potter v. Chicago Pneumatic Tool Co.694 A.2d 1319, 1332, 1334-1335 (Conn. 1997)
Flexible Pipe Failure in Field
Uriah Urban installed flexible gas piping purchased from Umbra Technologies in a commercial building. The piping ruptured during normal pressure cycles that the product was marketed to withstand. Uriah Urban sued for breach of the implied warranty of merchantability. The court examined whether the goods satisfied merchantability standards at the time of sale.
Tincher v. Omega Flex, Inc.104 A.3d 328 (Pa. 2014)
Implant Durability Expectations
Ursula Ung received silicone breast implants manufactured by a predecessor of Baxter Healthcare Corp. The implants ruptured during ordinary physical activity years after implantation. Ursula Ung sued alleging breach of the implied warranty of merchantability. The court assessed whether the implants met the fitness standard for their intended medical use.
Uma Upadhyay purchased a new automobile from Bloomfield Motors. The steering mechanism failed during routine driving, causing an accident. Uma Upadhyay sued both the dealer and the manufacturer for breach of the implied warranty of merchantability. The court considered whether standardized disclaimer language in the purchase order effectively excluded the warranty.
What must a seller do to exclude the implied warranty of merchantability under the UCC?+
The language must mention merchantability and, if in writing, must be conspicuous. A general statement that no warranties extend beyond the face of the document is insufficient to exclude the warranty of merchantability.
Supporting sources
Does a product that passes a risk-utility test automatically satisfy the implied warranty of merchantability?+
No. A jury may find that goods breach the implied warranty of merchantability even if they are not defective under a risk-utility analysis for strict products liability.
Supporting sources
When does a broad disclaimer of implied warranties in a confirmation form become part of a contract between merchants?+
It does not become part of the contract if the disclaimer materially alters the buyer's offer. Courts treat a blanket disclaimer of the warranty of merchantability as a material alteration that requires express assent.
Supporting sources
What evidence shows that goods failed to pass without objection in the trade under the contract description?+
Repeated malfunctions during ordinary use that would prompt objections from buyers in the trade establish that the goods did not meet the merchantability standard, even if the goods performed in controlled testing.
Supporting sources
32 N.J. 358, 161 A.2d 69 (1960)Torts
…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…