57A-2-314. Implied warranty--Merchantability--Usage of trade.
(1)Unless excluded or modified (§57A-2-316), a warranty that the goods shall be merchantable is implied in a contract for their sale if the seller is a merchant with respect to goods of that kind. Under this section the serving for value of food or drink to be consumed either on the premises or elsewhere is a sale.
(2)Goods to be merchantable must be at least such as
(a)Pass without objection in the trade under the contract description; and
(b)In the case of fungible goods, are of fair average quality within the description; and
(c)Are fit for the ordinary purposes for which such goods are used; and
(d)Run, within the variations permitted by the agreement, of even kind, quality and quantity within each unit and among all units involved; and
(e)Are adequately contained, packaged, and labeled as the agreement may require; and
(f)Conform to the promises or affirmations of fact made on the container or label if any.
(3)Unless excluded or modified (§57A-2-316) other implied warranties may arise from course of dealing or usage of trade.
Source: SL 1966, ch 150, §2-314; SDCL, §§57-4-30 to 57-4-32.