Section 34.1-2.A-212 - Implied warranty of merchantability(a) 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. (b) Goods to be merchantable must be at least such as: (i) Pass without objection in the trade under the description in the lease agreement; (ii) In the case of fungible goods, are of fair average quality within the description; (iii) Are fit for the ordinary purposes for which goods of that type are used; (iv) Run, within the variation permitted by the lease agreement, of even kind, quality and quantity within each unit and among all units involved; (v) Are adequately contained, packaged and labeled as the lease agreement may require; and (vi) Conform to any promises or affirmations of fact made on the container or label. (c) Other implied warranties may arise from course of dealing or usage of trade.