(1) Unless excluded or modified as provided in ORS § 72.3160, 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.

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Terms Used In Oregon Statutes 72.3140

  • Contract: A legal written agreement that becomes binding when signed.
  • Seller: means a person who sells or contracts to sell goods. See Oregon Statutes 72.1030

(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 as provided in ORS § 72.3160 other implied warranties may arise from course of dealing or usage of trade. [1961 c.726 § 72.3140]