Legal Question in Business Law in California

Re: Merchantablity

The California version of the Uniform Commercial Code defines 'merchantability' as follows. See Commercial Code section 2314(2):

(2) Goods to be merchantable must be at least such as:

(a) Pass without objection in the tradeunder the contract description; and

(b) In the case of fungible goods, are of fair average quality within the description; and

(c) Are fit for the ordinary purposes for which such goods are used; and

(d) Run, within the variations permitted by the agreement [i.e., the contract of sale], of even kind, quality and quantity within each unit and among all units involved; and

(e) Are adequately contained, packaged and labeled as the agreement may require; and

(f) Conform to the promises or affirmations of fact made on the container or label if any.

The official comment to this Code section says it 'does not purport to exhaust the definition of merchantable' and leaves open the possibility that there may be, in certain situations, additional attributes of merchantability.

Re: Merchantablity

"Merchantability" in a warranty context means that the product conforms to the prevailing industry (and consumer) expectations for appearance, construction and use.