Section 34.1-2-314 - Implied warranty; merchantability; usage of trade(a) Unless excluded or modified (section 34.1-2-316), 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.(b) Goods to be merchantable must be at least such as:(i) Pass without objection in the trade under the contract description; and(ii) In the case of fungible goods, are of fair average quality within the description; and(iii) Are fit for the ordinary purposes for which such goods are used; and(iv) Run, within the variations permitted by the agreement, of even kind, quality and quantity within each unit and among all units involved; and(v) Are adequately contained, packaged, and labeled as the agreement may require; and(vi) Conform to the promises or affirmations of fact made on the container or label if any.(c) Unless excluded or modified (section 34.1-2-316) other implied warranties may arise from course of dealing or usage of trade.