Dictionary:

merchantable

  (mûr'chənt-ə-bəl)

Suitable for buying and selling; marketable.

1. Salable.

2. Reasonably fit for the purpose for which an article is manufactured and sold.

3. Having at least average quality, compared to similar products.

Salable; of quality and type ordinarily acceptable among vendors and buyers.

An item is deemed merchantable if it is reasonably fit for the ordinary purposes for which such products are manufactured and sold. For example, soap is merchantable if it cleans. In general, a seller or manufacturer is required by law to make products of merchantable quality. In the event that the items do not meet with the proper standards, a suit can be brought against the seller or manufacturer by anyone who is injured as a result.

; sales.

See: product liability.

The adjective has one meaning:

Meaning #1: fit to be offered for sale
  Synonyms: marketable, sellable, vendable, vendible