Contracts and Sales Multistate Bar Practice Exam

What is the primary characteristic of the implied warranty of merchantability?

1. Goods must be unique and specially made

2. Goods must be of average acceptable quality

3. Goods must be sold at a premium price

4. Goods must include a written warranty

The correct answer is: Goods must be of average acceptable quality

The primary characteristic of the implied warranty of merchantability is that goods must be of average acceptable quality. This warranty ensures that the goods sold meet a certain standard that is generally expected in the marketplace. It signifies that the goods are fit for the ordinary purposes for which such goods are used, adequately packaged, and free from defects that would make them unreasonably dangerous or unusable. In this context, the warranty operates under the assumption that the seller is a merchant with knowledge and expertise concerning the goods being sold. Therefore, goods must perform as expected in accordance with consumer expectations for quality and fitness. It does not require that goods are unique or specially made, nor does it depend on them being sold at a premium price or including a written warranty; instead, the emphasis is on meeting standard quality and performance levels that consumers rightly anticipate.