Which statement describes merchantability?

Which statement describes merchantability?

• A. Goods are fit for the ordinary purpose for which such goods are used
• B. Goods must be perfect in every aspect
• C. Requires a written warranty
• D. Applies only to consumer goods

Answer: (A)

Merchantability means the goods are fit for the ordinary purpose for which such goods are used. Under the UCC, when a seller is a merchant in the kind of goods sold, there is an automatic implied warranty that the goods are of fair quality and conform to their description or label, so they are reasonably fit for their ordinary uses. This does not require the goods to be perfect in every aspect, nor does it require a written warranty to exist. The concept applies to goods in commerce generally, including both consumer and business purchases. Disclaimers like “as is” or “with all faults” can negate merchantability if they are clearly and properly stated.

Merchantability means the goods are fit for the ordinary purpose for which such goods are used. Under the UCC, when a seller is a merchant in the kind of goods sold, there is an automatic implied warranty that the goods are of fair quality and conform to their description or label, so they are reasonably fit for their ordinary uses. This does not require the goods to be perfect in every aspect, nor does it require a written warranty to exist. The concept applies to goods in commerce generally, including both consumer and business purchases. Disclaimers like “as is” or “with all faults” can negate merchantability if they are clearly and properly stated.