Legal Definitions - merchant

A merchant is an individual or business that regularly buys and sells specific types of goods for profit. The law considers merchants to have specialized knowledge or expertise related to the goods they deal in, either because they explicitly claim such expertise or simply because they regularly engage in selling those particular items. Due to this presumed expertise, merchants are held to a higher legal standard than a casual seller who does not regularly deal in such goods. It's important to note that this legal concept applies exclusively to the sale of physical goods, not to the provision of services.

• Example 1: Imagine a local electronics store that specializes in high-definition televisions and sound systems. This store regularly purchases these items from manufacturers and sells them to consumers for a profit. The store's sales staff are trained to explain technical specifications and recommend suitable products. Because the store regularly deals in electronics and presents itself as knowledgeable about them, it is considered a merchant. This means the store is legally expected to sell televisions that are fit for their ordinary purpose and meet certain quality standards, even if not explicitly stated.

• Example 2: Consider a small-batch coffee roaster who buys green coffee beans from various farms, roasts them, and then sells the roasted beans directly to customers through their website and at local markets. This roaster is consistently buying and selling coffee beans as part of their business. Even if they don't claim to be a coffee "expert" in a formal academic sense, their regular business of dealing in coffee beans makes them a merchant of those goods. Consequently, the law holds them to a standard where the coffee beans they sell are expected to be of merchantable quality and fit for brewing.

• Example 3: An individual who operates an online vintage clothing boutique, regularly sourcing unique garments from various suppliers and reselling them to customers worldwide. This person's business involves the consistent buying and selling of used clothing for financial gain. Even though they are not manufacturing the clothes, their regular engagement in the trade of vintage apparel qualifies them as a merchant of those goods. As a merchant, they are legally obligated to accurately describe the condition of the clothing and ensure it is reasonably fit for wear, given its vintage nature.