UCC § 2-314
Implied Warranty: Merchantability; Usage of Trade
(1) Unless excluded or modified (Section 2-316), a warranty that the goods shall be merchantable is implied in a contract for their sale if the seller is a merchant with respect to goods of that kind. Under this section the serving for value of food or drink to be consumed either on the premises or elsewhere is a sale. (2) Goods to be merchantable must be at least such as (a) pass without objection in the trade under 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, 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. (3) Unless excluded or modified (Section 2-316) other implied warranties may arise from course of dealing or usage of trade.
Professor's notes
Implied by law in every sale of goods by a merchant who deals in goods of that kind. No words required. Six tests for merchantability under § 2-314(2): (a) pass without objection in the trade; (b) fair average quality; (c) fit for ordinary purposes; (d) run of even kind, quality, and quantity; (e) adequately contained, packaged, labeled; (f) conform to label promises. Subsection (c), ordinary purposes, is the workhorse.
Common misunderstanding: students think merchantability requires a defect that causes harm. It does not. Goods that are merely below average in the trade fail (a) and (b). The standard is what a buyer in the trade would accept without complaint.
Only merchants in goods of that kind are liable under § 2-314. A casual seller is not. The warranty is the UCC's central consumer-protection provision and can be disclaimed only under § 2-316 (conspicuous, mentioning "merchantability," or "as is").
Text
UCC § 2-314. Implied Warranty: Merchantability; Usage of Trade.
(1) Unless excluded or modified (Section 2-316), a warranty that the goods shall be merchantable is implied in a contract for their sale if the seller is a merchant with respect to goods of that kind. Under this section the serving for value of food or drink to be consumed either on the premises or elsewhere is a sale.
(2) Goods to be merchantable must be at least such as
(a) pass without objection in the trade under 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, 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.
(3) Unless excluded or modified (Section 2-316) other implied warranties may arise from course of dealing or usage of trade.
Source: UCC Article 2 (post-2022 amendments), as in the LawJ statutory corpus.