Merchant

In one sentence

A person or business that regularly buys and sells goods of a particular kind.

Plain English

A merchant is someone in the business of selling goods—like a store owner, wholesaler, or manufacturer. The UCC treats merchants differently from ordinary buyers and sellers because merchants are expected to know the rules of commerce. For example, merchants have stricter obligations about warranties and must follow certain procedures when exchanging written confirmations of sales.

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Example

A car dealership is a merchant because it regularly sells vehicles, but a person selling their personal used car on a classified website is not a merchant.

Used in a sentence

“A merchant who sells defective goods may be liable under the implied warranty of merchantability.”

Related terms

Article 2

The section of the UCC that governs the sale of goods between merchants and non-merchants.

Goods

Tangible, movable items that can be bought, sold, or leased under the UCC.

Battle of the Forms

A situation where two parties exchange different written contract terms and disagree about which terms control.

Implied Warranty of Merchantability

An automatic guarantee that goods sold by a merchant are fit for their ordinary purpose.

Disclaimer of Warranties

A statement that removes or limits the automatic guarantees a seller would otherwise provide.

Offer

A proposal to enter into a binding agreement on specific terms.

Acceptance

Agreeing to the exact terms of an offer, creating a binding contract.

Consideration

Something of value exchanged by each party to make a contract binding.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.