<?xml version='1.0' encoding='utf-8'?>
<section article="gcl" article_name="Commercial Law" number="2A-212" title_number="2A" title_name="Leases" subtitle_number="2" subtitle_name="Formation and Construction of Lease Contract">
  <level label="1">
    <text>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.</text>
  </level>
  <level label="2">
    <text>Goods to be merchantable must be at least such as</text>
    <level label="a">
      <text>Pass without objection in the trade under the description in the lease agreement;</text>
    </level>
    <level label="b">
      <text>In the case of fungible goods, are of fair average quality within the description;</text>
    </level>
    <level label="c">
      <text>Are fit for the ordinary purpose for which goods of that type are used;</text>
    </level>
    <level label="d">
      <text>Run, within the variation permitted by the lease agreement, of even kind, quality, and quantity within each unit and among all units involved;</text>
    </level>
    <level label="e">
      <text>Are adequately contained, packaged, and labeled as the lease agreement may require; and</text>
    </level>
    <level label="f">
      <text>Conform to any promises or affirmations of fact made on the container or label.</text>
    </level>
  </level>
  <level label="3">
    <text>Other implied warranties may arise from course of dealing or usage of trade.</text>
  </level>
</section>
