Section 55-2A-212 - Implied warranty of merchantability. - New Mexico Statutes

55-2A-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 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.