Kill Local Merchant is a quest obtained from lords who are visiting a town. You can get the quest by talking to the lords, who will say "I owe a considerable amount of money to a merchant in this city" and you will have to take him out. Accepting the quest will teleport you to the streets of the city and the merchant will soon charge at you. Killing the merchant will teleport you to the castle where you can end the quest. You will earn favor, experience, and denars for the quest. The Local Merchant is a poorly equipped peasant which means even a beginning player can easily take him out.