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N.C. Gen. Stat. § 25-2-314

Implied warranty: Merchantability; usage of trade

Known as the Uniform Commercial Code

The act spans §§ 25–25 (616 sections).

Applied in 20 court decisions — leading case 106 N.C. App. 142 - Gregory v. Atrium Door and Window Co. (1992)

Most recently applied in Kerry Bodenhamer Farms, LLC v. Nature's Pearl Corp. (August 2018)

1965, c. 700, s. 1; 2025-25, s. 112.

How often courts cite this section

1982199020002010201820
citing decisions per year

Court decisions citing this, by year. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.

(a) Unless excluded or modified (G.S. 25-2-316), 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.

(b) Goods to be merchantable must be at least such as

(1) pass without objection in the trade under the contract description; and

(2) in the case of fungible goods, are of fair average quality within the description; and

(3) are fit for the ordinary purposes for which such goods are used; and

(4) run, within the variations permitted by the agreement, of even kind, quality and quantity within each unit and among all units involved; and

(5) are adequately contained, packaged, and labeled as the agreement may require; and

(6) conform to the promises or affirmations of fact made on the container or label if any.

(c) Unless excluded or modified (G.S. 25-2-316) other implied warranties may arise from course of dealing or usage of trade.

Official source: North Carolina General Assembly. Reproduced from public-domain North Carolina statutes; confirm against the official source for the current text. Not legal advice.