Code of Alabama

Ala. Code § 7-2-104 (2026)

Definitions: “Merchant”; “Between Merchants”; “Financing Agency.”

✓ official Alabama Legislature (ALISON) text, current July 2026
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(1) “Merchant” means a person who deals in goods of the kind or otherwise by his occupation holds himself out as having knowledge or skill peculiar to the practices or goods involved in the transaction or to whom such knowledge or skill may be attributed by his employment of an agent or broker or other intermediary who by his occupation holds himself out as having such knowledge or skill.

(2) “Financing agency” means a bank, finance company or other person who in the ordinary course of business makes advances against goods or documents of title or who by arrangement with either the seller or the buyer intervenes in ordinary course to make or collect payment due or claimed under the contract for sale, as by purchasing or paying the seller’s draft or making advances against it or by merely taking it for collection whether or not documents of title accompany or are associated with the draft. “Financing agency” includes also a bank or other person who similarly intervenes between persons who are in the position of seller and buyer in respect to the goods (Section 7-2-707).

(3) “Between merchants” means in any transaction with respect to which both parties are chargeable with the knowledge or skill of merchants.

(Acts 1965, No. 549, p. 811; Act 2004-315, p. 464, §2.)

Notes of Decisions
Cited in 6 cases (2 in the last 5 years), 1984–2023 · leading case: Spain v. Brown & Williamson Tobacco Corp., 872 So. 2d 101 (Ala. 2003).
Spain v. Brown & Williamson Tobacco Corp., 872 So. 2d 101 (Ala. 2003). “§ 7-2-104, Ala. Code 1975. See Ex parte General Motors Corp.”
Alabama Powersport Auction, LLC v. Wiese, 143 So. 3d 713 (Ala. 2013). · cites it 2× “, which is identical to § 7-2-104, Ala.Code 1975, and which states, in pertinent part: “(1) ‘Merchant’ means a person who deals in goods of the kind or otherwise by the person’s occupation holds oneself out as having knowledge or skill peculiar to the practices or goods involved…”
Skelton v. Druid City Hosp. Bd., 459 So. 2d 818 (Ala. 1984). “" § 7-2-104(1), Code 1975. We cannot ignore the fact that hospitals, whether profitable or not, are businesses.”
Ballard v. Gen. Motors LLC (M.D. Ala. 2021). · cites it 3× “, vehicles, including the Chevrolet Blazer), § 7-2-103(1)(d), and that it “deals in goods of the kind,” Ala. Code § 7-2-104 (1). Section 7-2-314’s requirement that the “seller” be a “merchant with respect to goods of that kind” is satisfied.”
SSAB Alabama, Inc. v. Kem-Bonds, Inc. (S.D. Ala. 2017). · cites it 2× “See Ala. Code § 7-2-104 (1) (“‘Merchant’ means a person who deals in goods of the kind or otherwise by his occupation holds himself out as having knowledge or skill peculiar to the practices or goods involved in the transaction ….”
Parker v. Exterior Restorations, Inc. (S.D. Ala. 2023). “Sto is therefore capable of issuing an implied warranty of merchantability.”
— Ala. Code § 7-2-104(1) — 3 cases
Skelton v. Druid City Hosp. Bd., 459 So. 2d 818 (Ala. 1984). “" § 7-2-104(1), Code 1975. We cannot ignore the fact that hospitals, whether profitable or not, are businesses.”
Alabama Powersport Auction, LLC v. Wiese, 143 So. 3d 713 (Ala. 2013). “, which is identical to § 7-2-104, Ala.Code 1975, and which states, in pertinent part: “(1) ‘Merchant’ means a person who deals in goods of the kind or otherwise by the person’s occupation holds oneself out as having knowledge or skill peculiar to the practices or goods involved…”
Parker v. Exterior Restorations, Inc. (S.D. Ala. 2023). “Sto is therefore capable of issuing an implied warranty of merchantability.”
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