Implied warranty of merchantability

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  • (1) Except in a finance lease, a warranty that the goods will be merchantable is implied in a lease contract if the lessor is a merchant with respect to goods of that kind.

  • (2) Goods to be merchantable must be at least such as

    • (a) pass without objection in the trade under the description in the lease agreement;

    • (b) in the case of fungible goods, are of fair average quality within the description;

    • (c) are fit for the ordinary purposes for which goods of that type are used;

    • (d) run, within the variation permitted by the lease agreement, of even kind, quality, and quantity within each unit and among all units involved;

    • (e) are adequately contained, packaged, and labeled as the lease agreement may require; and

    • (f) conform to any promises or affirmations of fact made on the container or label.

  • (3) Other implied warranties may arise from course of dealing or usage of trade.


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