Understanding the Implied Warranty of Merchantability Under NY UCC
When selling goods in New York, merchants automatically provide certain assurances to buyers, even if they don't explicitly state them. One of these is the implied warranty of merchantability under UCC §2-314.
What is the Implied Warranty of Merchantability?
Definition:
An unwritten and unspoken guarantee that the goods sold are fit for the ordinary purposes for which such goods are used.
Automatic Inclusion:
This warranty is automatically included in a sale of goods by a merchant unless it is properly disclaimed.
Key Requirements:
Fair Average Quality:
Goods must be of a quality comparable to that generally acceptable in the trade.
Suitable for Ordinary Use:
Goods should function as expected for their intended purpose.
Properly Packaged and Labeled:
Packaging and labeling must meet industry standards.
Why It Matters for Merchants:
Legal Obligations:
Failure to meet this warranty can lead to breach of contract claims.
Customer Satisfaction:
Providing goods that meet expectations enhances reputation and customer loyalty.
Risk Mitigation:
Understanding this warranty helps in quality control and reducing potential liabilities.
Disclaiming the Warranty:
Written Disclaimer:
To exclude this warranty, the disclaimer must be in writing and conspicuous.
Specific Language:
Phrases like "as is" or "with all faults" can be used.
Key Takeaways:
Always ensure the goods you sell are of merchantable quality.
If you wish to disclaim the warranty, do so clearly and in compliance with legal requirements.
Maintaining high-quality standards protects both your customers and your business.
Disclaimer:
This article is for informational purposes only and does not constitute legal advice. Although I am an attorney, I am not your attorney, and reading this article does not create an attorney-client relationship. For advice pertaining to your specific situation, please consult a qualified attorney licensed in your area.
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