WILLIAM DONALD SCHAEFER, Governor                           S.B. 147

2A-212. IMPLIED WARRANTY OF MERCHANTABILITY

(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 PURPOSE 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.

2A-213. IMPLIED WARRANTY OF FITNESS FOR PARTICULAR PURPOSE

EXCEPT IN A FINANCE LEASE, IF THE LESSOR AT THE TIME THE LEASE
CONTRACT IS MADE HAS REASON TO KNOW OF ANY PARTICULAR PURPOSE FOR
WHICH THE GOODS ARE REQUIRED AND THAT THE LESSEE IS RELYING ON THE
LESSOR'S SKILL OR JUDGMENT TO SELECT OR FURNISH SUITABLE GOODS, THERE IS
IN THE LEASE CONTRACT AN IMPLIED WARRANTY THAT THE GOODS WILL BE FIT
FOR THAT PURPOSE.

2A-214. EXCLUSION OR MODIFICATION OF WARRANTIES

(1)      WORDS OR CONDUCT RELEVANT TO THE CREATION OF AN EXPRESS
WARRANTY AND WORDS OR CONDUCT TENDING TO NEGATE OR LIMIT A
WARRANTY MUST BE CONSTRUED WHEREVER REASONABLE AS CONSISTENT WITH
EACH OTHER; BUT, SUBJECT TO THE PROVISIONS OF § 2A-202 ON PAROL OR
EXTRINSIC EVIDENCE, NEGATION OR LIMITATION IS INOPERATIVE TO THE EXTENT
THAT THE CONSTRUCTION IS UNREASONABLE.

(2)      SUBJECT TO SUBSECTION (3), TO EXCLUDE OR MODIFY THE IMPLIED
WARRANTY OF MERCHANTABILITY OR ANY PART OF IT, THE LANGUAGE MUST
MENTION "MERCHANTABILITY", BE BY A WRITING, AND BE CONSPICUOUS. SUBJECT
TO SUBSECTION (3), TO EXCLUDE OR MODIFY ANY IMPLIED WARRANTY OF FITNESS,
THE EXCLUSION MUST BE BY A WRITING AND BE CONSPICUOUS. LANGUAGE TO

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