The warranty of merchantability is implied, unless expressly disclaimed by name, or the sale is identified with the phrase "as is" or "with all faults".
Theoretically, this saves a buyer from having to "pay twice" for a product, if it is confiscated by the rightful owner, but only if the seller can be found and makes restitution.
The Sale of Goods Acts in each state also implies the warranty and is not limited to consumer contracts.
In international sales law, merchantability forms part of the ordinary purpose of the goods.
In some cases, courts have ruled that the warranty also covers cracked walls, peeling paint, and leaks.
In some jurisdictions, an implied warranty in a sales contract can be expressly disclaimed by the use of specific language such as the words "as is" or "with all faults".
In the United States, a disclaimer must be conspicuous in the contract, such as in a different kind of print or font that makes it stand out.
[1] On the other hand, express warranty, or any affirmation of fact or promise to the buyer or description of the good, oral or written, can be negated or limited only if such disclaimers are reasonable.
UCC § 2-316(1) [6] Some jurisdictions, however, limit the ability of sellers or manufacturers to disclaim the implied warranty of merchantability or fitness, such as Massachusetts.
For example, if a defective product causes a personal injury, a contractual provision limiting recovery in such a case will be deemed prima facie unconscionable.