Necessity of Defect – To impose liability for breach of the implied warranty of merchantability, it is ordinarily necessary to show that there was a defect in the product, that this defect made the product not fit for its normal use, and that this caused the plaintiff’s harm.  A product may be defective because there is (1) a manufacturing defect, (2) a design defect, (3) inadequate instruction on how to use the product, or (4) inadequate warning against dangers involved in using the product. 

The UCC expressly preserved the pre-Code law governing fraud.  The making of a false statement of a past or existing fact, with knowledge of its falsity or with reckless indifference as to its truth, with the intent to cause another to rely thereon, and such person does rely thereon and is harmed thereby.