Simple English definitions for legal terms
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Merchantable: When something is merchantable, it means that it can be sold in a store or market. It doesn't have to be the best quality, but it should be good enough to be used for its normal purpose. If something is sold with a warranty of merchantability, it means that the seller promises that the item is fit to be sold and used as intended. There are certain standards that goods must meet to be considered merchantable, such as being of fair quality and properly labeled.
Definition: “Merchantable” means that goods are of reasonable quality within expected variations and are fit for sale in the usual course of trade, at the usual selling price. Merchantable goods need not be outstanding or superior quality, they need only be fit for the ordinary purpose for which they are used.
For example, if you buy a new phone, it should be merchantable, meaning it should work properly and be fit for sale at the usual selling price. However, if you buy a used phone that is sold "as is" or "with all faults," it may not be merchantable.
There exists an implied warranty of merchantability for all items sold, unless there is some sort of disclaimer with language stipulating the item is being sold “as is” or “with all faults.” This is not to be confused with the similar but distinct implied warranty of fitness, which exists to ensure that an item requested for a particular purpose by a buyer and supplied by the seller is usable for that purpose.
Under UCC Section 2-314, for goods to be merchantable, they must be at least such as:
Overall, merchantable goods are those that are fit for sale and meet certain quality standards. This ensures that consumers are getting what they paid for and that the goods are suitable for their intended use.