Section 4-2-314 - Implied warranty - merchantability - usage of trade(1) Unless excluded or modified (section 4-2-316 ), 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 (section 4-2-316 ), other implied warranties may arise from course of dealing or usage of trade.L. 65: p. 1310, § 1. C.R.S. 1963: § 155-2-314.