To what extent must the term 'merchantability' appear in a disclaimer of an implied warranty of merchantability?

• A. The word 'merchantability' must appear
• B. It must be conspicuous
• C. No disclaimer allowed
• D. Disclaimers can disclaim an Express Warranty

Answer: (A)

The essential point is that to waive the implied warranty of merchantability, the disclaimer must actually use the term merchantability. Under the applicable rules, the writing must mention the word “merchantability” (or the closely related term “merchantable”) for the waiver to be effective. This explicit reference is the core requirement, separate from any duty that the disclaimer be conspicuous. So even if a disclaimer is clearly presented, if it doesn’t include the word “merchantability,” it typically won’t successfully disclaim the implied warranty. The additional notion that a disclaimer must be conspicuous is a separate rule that reinforces the waiver, but the need to include the word itself is what makes the disclaimer meet the required extent.