Effective: November 6, 1992 Latest Legislation: House Bill 693 - 119th General Assembly (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) To be merchantable, goods shall at least satisfy the following: (1) Pass without objection in the trade under the description in the lease agreement; (2) In the case of fungible goods, be of fair average quality within the description; (3) Be fit for the ordinary purposes for which goods of that type are used; (4) Run, within the variation permitted by the lease agreement, of even kind, quality, and quantity within each unit and among all units involved; (5) Be adequately contained, packaged, and labeled as the lease agreement may require; (6) 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.
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