Define: Defective Merchandise

How is Defective Merchandise defined in a legal contract?

• Defective Merchandise means any merchandise that is not in a sellable condition due to various defects like being worn, scratched, broken, faded, mismatched, or not of first quality. However, merchandise on display is not considered defective just because it's on display. Seen in 8 SEC filings
• Defective Merchandise means merchandise that is not new, finished, first-quality or saleable items. This includes items that are used, damaged, defective, scratched, soiled, ripped, torn, stained, faded, discolored, dented or shopworn. Seen in 6 SEC filings
• Defective Merchandise means any merchandise item that has defects like being dented, worn, scratched, broken, faded, or mismatched, making it not of first quality. Merchandise on display does not automatically become defective. Seen in 4 SEC filings
• Defective Merchandise means any item of merchandise identified mutually by the agent and merchant as defective or not sellable in the ordinary course because of defects like denting, wear, scratching, breakage, fading, tearing, or mismatching. Merchandise on display is not assumed to be defective. Seen in 3 SEC filings
• Defective Merchandise means any inventory that is damaged, defective and not sellable as new. Seen in 3 SEC filings
• Defective Merchandise means any item of merchandise considered defective or unsellable in its ordinary course due to defects like denting, wearing, scratching, breaking, mismatching or being affected by similar defects, making it not first quality. This could include items like non-running watches, watches without boxes or instructions, and earrings without backs. Seen in 3 SEC filings

Note: The Genie AI Legal Assistant pulled this data out of the SEC EDGAR Database of 500,000 records from the past 22 years of filings. We regularly update this page as new filings and definitions come in.

Search EDGAR for 'Definitions of defective merchandise' yourself to verify these results. We are always keen to point people to source documents.

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Which definition should you use?

🤔 Our AI Legal Assistant has combined and improved the above descriptions to create market-standard 'Genie definitions' below, with guidance on which documents and which industry to use for each.

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Genie Definition 1

• Defective Merchandise means any product unsellable due to defects like damage, wear, or mismatching attributes.

Relevant Contract Types

• Sales Contract
• Supply Contract
• Purchase Agreement
• Retail Agreement

Relevant Circumstances

• When a product purchased does not meet the expected quality standards.
• When there is disagreement on the condition of a product after purchase.
• When a product must be returned due to defects.

Relevant Sectors

• Retail
• Manufacturing
• Ecommerce

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Genie Definition 2

• Defective Merchandise means any sellable item affected by non-standard conditions, excluding display merchandise.

Relevant Contract Types

• Wholesale Contract
• Consignment Agreement
• Vendor Agreement

Relevant Circumstances

• When the condition of a product affects its sales potential.
• When an item is not in its standard condition, but still sellable.

Relevant Sectors

• Retail
• Wholesale
• Fashion and Apparel

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