Montana Code 30-2A-212. Implied warranty of merchantability
30-2A-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 Montana Code 30-2A-212
- Contract: A legal written agreement that becomes binding when signed.
- Goods: means all things that are movable at the time of identification to the lease contract, or are fixtures (30-2A-309), 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 Montana Code 30-2A-103
- 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 Montana Code 30-2A-103
- 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 chapter. See Montana Code 30-2A-103
- Lessor: means a person who transfers the right to possession and use of goods under a lease. See Montana Code 30-2A-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 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; 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.