CA's Flavor of Implied Warranty Leaves a Sour Taste

The warranty of merchantability, implied in almost every consumer purchase, rarely presents a litigation opportunity, even for the most-savvy advocates. For decades, courts have consistently interpreted the term 'merchantability' to connote a minimal, baseline assurance of product fitness and functionality. Essentially, if a product adequately performs its ordinary purpose, it satisfies the implied warranty. A recent decision from an appellate court in California, however, offers footing for plaintiff attorneys to argue for an expanded definition of 'merchantability.' Such a development, which the Uniform Commercial Code neither compels nor suggests, marks a departure from settled law and presents a significant risk of higher warranty costs for manufacturers and higher prices for consumers.