30-2-314. Implied warranty — merchantability — usage of trade. (1) Unless excluded or modified (30-2-316), a warranty that the goods shall be merchantable is implied in a contract for their sale if the seller is a merchant with respect to goods of that kind. Under this section the serving for value of food or drink to be consumed either on the premises or elsewhere is a sale.

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Terms Used In Montana Code 30-2-314

  • Contract: A legal written agreement that becomes binding when signed.
  • Seller: means a person who sells or contracts to sell goods. See Montana Code 30-2-103
  • Usage: means a reasonable and lawful public custom concerning transactions of the same nature as those which are to be affected thereby, existing at the place where the obligation is to be performed, and either known to the parties or so well established, general, and uniform that the parties must be presumed to have acted with reference thereto. See Montana Code 1-1-206

(2)Goods to be merchantable must be at least such as:

(a)pass without objection in the trade under the contract description; and

(b)in the case of fungible goods, are of fair average quality within the description; and

(c)are fit for the ordinary purposes for which such goods are used; and

(d)run, within the variations permitted by the agreement, of even kind, quality and quantity within each unit and among all units involved; and

(e)are adequately contained, packaged, and labeled as the agreement may require; and

(f)conform to the promises or affirmations of fact made on the container or label if any.

(3)Unless excluded or modified (30-2-316) other implied warranties may arise from course of dealing or usage of trade.