(a) 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 Hawaii Revised Statutes 490:2A-212
Contract: A legal written agreement that becomes binding when signed.
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
(b) Goods to be merchantable must be at least such as:
(1) Pass without objection in the trade under the description in the lease agreement;(2) In the case of fungible goods, are of fair average quality within the description;(3) Are fit for the ordinary purposes for which goods of that type are used;(4) Run, within the variation permitted by the lease agreement, of even kind, quality, and quantity within each unit and among all units involved;(5) Are adequately contained, packaged, and labeled as the lease agreement may require; and(6) Conform to any promises or affirmations of fact made on the container or label.(c) Other implied warranties may arise from course of dealing or usage of trade.
