(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.

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Terms Used In Rhode Island General Laws 6A-2.1-212

  • 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 (§?6A-2. See Rhode Island General Laws 6A-2.1-103
  • 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 Rhode Island General Laws 6A-2.1-103
  • 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 Rhode Island General Laws 6A-2.1-103
  • Lessor: means a person who transfers the right to possession and use of goods under a lease. See Rhode Island General Laws 6A-2.1-103

(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.

History of Section.
P.L. 1991, ch. 305, § 1.