Beware if You are being a Cheap Charlie: Used Goods and Merchantable Quality

Abstract

Abstract—As specified by S.15 (2) of the Sale of Goods Ordinance No 11 of 1896 (SGO of 1896), where goods are bought by description from a seller who deals in goods of that description, there is an implied condition that the goods shall be of merchantable quality and when the sale is by sample, S. 16 (2) (c) specifies that there is an implied condition that the goods shall be free from any defect rendering them unmerchantable, which would not be apparent on reasonable examination of the sample. It is quite clear that this condition of ‘merchantable quality’, would award protection to a buyer who purchases goods in the usual way from a shop. However, the question to be addressed in this context is whether a buyer who purchases used goods (second hand goods) is entitled to the same level of protection under the SGO of 1896 as received by a buyer of a brand new product. Utilizing the black letter approach, this doctrinal research aims to find out the solution for the above problem. Further, the comparative analysis method is used to examine the distinctions between the statutory provisions in the SGO of 1896 regarding ‘merchantable quality’ and the analogous provisions of the relevant statutes in the United Kingdom with the objective of making recommendations to develop the existing law in Sri Lanka.