(1) Unless excluded or modified (Section 2-316 [55-2-316 N.M. Stat. Ann.]), 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.

(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 (Section 2-316 [55-2-316 N.M. Stat. Ann.]) other implied warranties may arise from course of dealing or usage of trade.