I think that is only true of the Equalizer sword.
Note that the race of an item effects where it will show UP in the game. Dwarf items will show up at dwarf merchants, human ones at human merchants. THis is why you find a large % of the undead items in the game each play through... because there aren't many of them, but a fair number of undead merchants.
Also note that the KBAP info thread has information in it as to what effects the morale of most items.
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