warranty of merchantability

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A warranty of merchantability is a type of warranty that asserts that the goods are reasonably fit for its ordinary and intended purpose for which they are sold.

An implied warranty of merchantability is defined in U.C.C. § 2-314. U.C.C. § 2-314(1) states that unless excluded or modified, a warranty that goods shall be merchantable is implied in a contract for sale if the seller is a merchant with respect to goods of that kind. However, this implied warranty of merchantability can be waived when the buyer has examined the goods, sample, or model as fully as desired or when the buyer refused to examine the goods, there is no implied warranty of merchantability with regard to defects that should have been revealed by examination.

In Webster v. Blue Ship Tea Room, 347 Mass. 421, 198 N.E.2d 309 (1964), for instance, the court found that the plaintiff waived the implied warranty of merchantability because the plaintiff ordered fish chowder, the plaintiff knew what is usually included in fish chowder, and it is natural to expect a fish bone in the chowder. 

[Last updated in September of 2021 by the Wex Definitions Team]