Explain the implied warranty of merchantability

What will be an ideal response?

The implied warranty of merchantability is a warranty or guarantee that the goods are reasonably fit for ordinary use. This warranty arises out of every sale, unless it is expressly and clearly excluded. According to the Uniform Commercial Code (UCC), to meet the standard of merchantability, the goods must:
a. pass without objection in the trade under the contract description;
b. be of fair or average quality within the description;
c. be fit for the ordinary purpose for which the goods are used;
d. run, with variations permitted by agreement, of even kind, quality, and quantity within each unit and among all units involved;
e. be adequately contained, packaged, and labeled as the agreement may require; and
f. conform to any affirmations or promises made on the label or container.

If the product does not conform to those standards and, as a result of this nonconformity, the purchaser or his or her property is injured, the purchaser may recover for breach of the implied warranty of merchantability.

Business

You might also like to view...

Define triggering operation. Provide an example and include the components

What will be an ideal response?

Business

The recognition of depreciation is not intended to make the assets reflect their market value on the balance sheet

a. True b. False Indicate whether the statement is true or false

Business