Legal Definitions - implied warranty of merchantability

An implied warranty of merchantability is a type of warranty that is automatically included in a contract for the sale of goods, unless it is specifically excluded or modified. This warranty is defined in U.C.C. § 2-314 and applies when the seller is a merchant of the goods being sold.

What does this mean? Essentially, it means that when you buy something from a seller who is in the business of selling that type of item, you can assume that the item is fit for its intended purpose. For example, if you buy a new laptop from an electronics store, you can assume that it will work properly for its intended use as a computer.

However, this warranty only applies if the buyer has not examined the goods and if the defects were not obvious. For example, if you buy a used car and notice that it has a dent in the door, you cannot later claim that the car was not fit for its intended purpose because of the dent.

One example of a case involving the implied warranty of merchantability is Webster v. Blue Ship Tea Room. In this case, the plaintiff ate fish chowder at a restaurant and found a piece of bone in it, which caused injury. The court found that the plaintiff had waived the implied warranty of merchantability because they had voluntarily ordered the fish chowder and were familiar with the dish, so it was reasonable to expect that there might be bones in it.