N.Y. Uniform Commercial Code 2-A-212 – Implied Warranty of Merchantability
Section 2-A-212. Implied Warranty of Merchantability.
Terms Used In N.Y. Uniform Commercial Code 2-A-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
(Section 2-A-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 N.Y. Uniform Commercial Code 2-A-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 N.Y. Uniform Commercial Code 2-A-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 Article. See N.Y. Uniform Commercial Code 2-A-103 - Lessor: means a person who transfers the right to possession
and use of goods under a lease. See N.Y. Uniform Commercial Code 2-A-103
(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 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.