Opinion ID: 1111913
Heading Depth: 2
Heading Rank: 2

Heading: Implied Warranty of Merchantability Theory

Text: Miss. Code Ann. § 75-2-314 (1972) provides in part: (1) 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 ..... (c) are fit for the ordinary purposes for which such goods are used. No question is raised regarding the seller's status as a merchant with respect to the sale of a truck. The only question is the applicability of implied warranties to the sale of used motored vehicles. Numerous jurisdictions have held that an implied warranty of merchantability may arise in the sale of used goods. See e.g., Dickerson v. Mountain View Equipment Co., 109 Idaho 711, 710 P.2d 621 (Ct.App. 1985) (used tractor); Brazeal v. Craig, 683 S.W.2d 329 (Mo. Ct. App. 1984) (rebuilt transmission); Dale v. King Lincoln-Mercury, Inc., 234 Kan. 840, 676 P.2d 744 (1984) (used automobile); Jackson v. H. Frank Olds, Inc., 65 Ill. App.3d 571, 22 Ill.Dec. 230, 382 N.E.2d 550 (1978) (used automobile); Chamberlain v. Bob Matick Chevrolet, Inc., 4 Conn.Cir. 685, 239 A.2d 42 (1967) (used automobile). Contra: Southerland v. Northeast Datsun, Inc., 659 S.W.2d 889 (Tex. Ct. App. 1983). In Mississippi, Bryan Construction Co., Inc. v. Thad Ryan Cadillac, Inc., 300 So.2d 444 (Miss. 1974) dealt with a used motor vehicle, but the applicability of the UCC implied warranty of merchantability to used vehicles was not challenged. The UCC clearly furnishes the answer in § 75-2-105 defining goods as: Goods means all things (including specially manufactured goods) which are movable at the time of identification to the contract for sale other than the money in which the price is to be paid, investment securities (Chapter 8) and things in action. Goods also includes the unborn young of animals and growing crops and other identified things attached to realty as described in the section on goods to be severed from realty (Section 2-107) [§ 75-2-107]. This Court concludes the UCC does not distinguish between new and used goods and that the implied warranty of merchantability applies to the sale of a used motor vehicle by a merchant with respect to goods of that kind. The implied warranty of merchantability is not intended to guarantee that the goods be the best or of the highest quality  the standard is measured by the generally acceptable quality under the description used in the contract. Dickerson, 710 P.2d at 624. If a product conforms to the quality of other similar products in the market, it will normally be merchantable. White & Summers, Uniform Commercial Code § 9-7 (2d ed. 1980). See also, Uniform Commercial Code § 2-314, Official Comment 3 (A contract for the sale of second-hand goods, however, involves only such obligation as is appropriate to such goods for that is their contract description.) Merchantability is different for new and used goods of the same type. Used goods are reasonably expected to require more maintenance and repair and their quality should not be measured on the same scale as that of new goods. Used goods should be compared to similar used goods. If they conform to the quality of other similar used goods, they will normally be merchantable. Another point of interest is that the implied warranty of merchantability may not be waived or disclaimed in Mississippi. Miss. Code Ann. § 11-7-18 (1972); Miss. Code Ann. § 75-2-719(4) (1972). See also, Editor's note to Miss. Code Ann. § 75-2-314 (1972) proclaiming the Mississippi Legislature's intent to prohibit the exclusion or modification of the implied warranty of merchantability.