Oceanic Vessels, Inc., and Pacific Harbor Company enter into a contract for a sale of a boat. Oceanic is a merchant who deals in goods of the kind sold. The goods are defective. Under the UCC, the implied warranty of merchantability is breached

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Under the UCC, the implied warranty of merchantability applies to merchants who deal in goods of the kind sold. It requires that the goods must be fit for their ordinary purpose, and be of at least average quality and design. This warranty is breached regardless of whether the merchant knew about or could have discovered the defect.