merchant. One whose business is buying and selling goods for profit; esp. a person or entity that holds itself out as having expertise peculiar to the goods in which it deals and is therefore held by the law to a higher standard of expertise than that of a nonmerchant. • Because the term relates solely to goods, a supplier of services is not considered a merchant. [Cases: Sales 15.1. C.J.S. Sales § 10.]

“The definition of ‘merchant’ in [UCC] Section 2-104(1) identifies two separate but often interrelated criteria: Does the seller ‘deal in goods’ of that kind, or does the seller ‘otherwise by his occupation’ hold himself out as having special knowledge with respect to the goods? It should be emphasized that the drafters have placed these two criteria in the alternative by use of the word ‘or.’ Thus, the definition clearly catches all those who regularly sell inventory even though they may have no expertise regarding the particular product. This would include distributors, wholesalers, and retail dealers. Dealers who sell prepackaged goods containing a defect over which they have no control might be surprised to learn that they have given an implied warranty of merchantability with respect to the goods, but such is the law.” Barkley Clark & Christopher Smith, The Law of Product Warranties§ 5.02[1], at 5-25 (1984).

[Blacks Law 8th]