Which statement describes the implied warranty of merchantability?

Which statement describes the implied warranty of merchantability?

• A. Any seller of goods, but only if the seller is a merchant.
• B. Only to sale of services.
• C. Only to bailments.
• D. To real property transactions.

Answer: (A)

The key idea is that the implied warranty of merchantability only arises in sales of goods by someone who is a merchant in those goods. When a merchant who deals in the kind of goods being sold transfers title, the goods are impliedly warranted to be fit for their ordinary purpose. This means the statement that best describes it is that the warranty attaches to sales by a merchant of goods, and not to services, bailments, or real property transactions. Services, non-merchant transactions, bailments, and real estate deals aren’t covered by this particular warranty.

The key idea is that the implied warranty of merchantability only arises in sales of goods by someone who is a merchant in those goods. When a merchant who deals in the kind of goods being sold transfers title, the goods are impliedly warranted to be fit for their ordinary purpose. This means the statement that best describes it is that the warranty attaches to sales by a merchant of goods, and not to services, bailments, or real property transactions. Services, non-merchant transactions, bailments, and real estate deals aren’t covered by this particular warranty.