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What does the warranty of merchantability guarantee?
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.
What type of warranties are the following warranty of merchantability and warrant of fitness?
There are two types of implied warranties. An implied warranty of merchantability exists that guarantees the car is safe to drive. An implied warranty of fitness also exists that guarantees the car will function for its intended purpose if you made your intentions for the car known to the seller.
What is an implied warranty of merchantability under the UCC?
An implied warranty of merchantability is a type of warranty defined in U.C.C. § 2-314. U.C.C. § 2-314(1) states that, unless otherwise excluded or modified, a warranty that the goods are merchantable is implied in a contract for sale if the seller is a merchant of these sorts of goods.
What is merchantability under UCC?
Can implied warranty of merchantability be waived?
The Uniform Commercial Code (UCC) permits sellers of goods to disclaim the implied warranty of merchantability. The UCC requires the disclaimer to be in conspicuous type. The disclaimer must expressly include the term “merchantability,” as well.
What UCC section covers the implied warranty of merchantability?
UCC § 2-314
According to UCC § 2-314, 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. An implied warranty of merchantability may be excluded or modified by words or conduct subject to the provisions of UCC § 2-316.
What does no merchantability mean?
An item is deemed merchantable if it is reasonably fit for the ordinary purposes for which such products are manufactured and sold. For example, soap is merchantable if it cleans. In general, a seller or manufacturer is required by law to make products of merchantable quality.
Can you exclude warranty of merchantability?
To disclaim the warranty of merchantability in the relevant agreement, the written contract must contain a conspicuous disclaimer that either: (1) expressly identifies “merchantability” or (2) includes an expression stating that the goods are sold “as is” or “with all faults.”