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: 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: 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 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.

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