The concept of warranty of merchantability is one that confuses many business professionals. What Is it exactly, and what does it mean? In this blog post, we’re going to clear up any confusion and provide a basic overview of what warranty of merchantability means.
What Is Warranty of Merchantability?
In simplest terms, the warranty of merchantability is a guarantee given by the seller that the goods that are purchased will serve their intended purpose and will be of acceptable quality. This means that the goods will be fit for its normal and intended purpose and will meet industry standards.
In the United States, the warranty of merchantability is often implied by law. This means that even when not explicitly stated, it is considered to be a part of the purchase agreement. It is commonly found in cases where the product is sold by a merchant, or someone that regularly deals in such items.
What Does Warranty of Merchantability Mean for Business Professionals?
For business professionals, this warranty is essential for knowing that any goods purchased will serve their intended purpose and will meet industry standards. This is especially true for large purchases, where a product that is of subpar quality can lead to a significant loss of capital.
It is also important when selling goods, as it is necessary to ensure that goods are up to the industry standard and fit for their intended purpose. Otherwise, legal action can be taken if goods are found to be of unacceptable quality. As such, it is important for business professionals to understand what is included in the concept of warranty of merchantability.
Conclusion
In summary, the warranty of merchantability is an important concept that all business professionals should understand. It means that goods will serve their intended purpose and will meet industry standards. This is important for both buyers and sellers, as it ensures that goods are up to standard and any legal action can be taken if they are not.