Michigan Laws 440.2862 – Implied warranty of merchantability; other implied warranties
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(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.
(2) Goods to be merchantable must be at least all of the following:
Terms Used In Michigan Laws 440.2862
- Contract: A legal written agreement that becomes binding when signed.
- Fungible goods: means either of the following:
(i) Goods of which any unit, by nature or usage of trade, is the equivalent of any other like unit. See Michigan Laws 440.1201Goods: means all things that are movable at the time of identification to the lease contract, or are fixtures under section 2A309, but the term does not include money, documents, instruments, accounts, chattel paper, general intangibles, or minerals or the like, including oil and gas, before extraction. See Michigan Laws 440.2803 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 Lease: means a transfer of the right to possession and use of goods for a term in return for consideration, but a sale, including a sale on approval or a sale or return, or retention or creation of a security interest is not a lease. See Michigan Laws 440.2803 Lease agreement: means the bargain, with respect to the lease, of the lessor and the lessee in fact as found in their language or by implication from other circumstances including course of dealing or usage of trade or course of performance as provided in this article. See Michigan Laws 440.2803 Lessor: means a person who transfers the right to possession and use of goods under a lease. See Michigan Laws 440.2803
(a) Pass without objection in the trade under the description in the lease agreement.
(b) In the case of fungible goods, are of fair average quality within the description.
(c) Are 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) Are adequately contained, packaged, and labeled as the lease agreement may require.
(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.