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Effective Jul 15, 1991Amended by Stats. 1991, Ch. 111, Sec. 16. Effective July 15, 1991.
- (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:
- (1) Pass without objection in the trade under the description in the lease agreement;
- (2) In the case of fungible goods, are of fair average quality within the description;
- (3) Are 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) Are adequately contained, packaged, and labeled as the lease agreement may require; and
- (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.