North Dakota Code 41-02.1-21 – (2A-212) Implied warranty of merchantability
1. 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.
Terms Used In North Dakota Code 41-02.1-21
- Contract: A legal written agreement that becomes binding when signed.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
2. Goods to be merchantable must:
a. Pass without objection in the trade under the description in the lease agreement; b. In the case of fungible goods, be of fair average quality within the description; c. Be fit for the ordinary purposes for which goods of that type are used; d. Run, within the variation permitted by the lease agreement, of even kind, quality, and quantity within each unit and among all units involved; e. Be adequately contained, packaged, and labeled as the lease agreement may require; and
f. Conform to any promises or affirmations of fact made on the container or label.
3. Other implied warranties may arise from course of dealing or usage of trade.