84-2a-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.
History: L. 1991, ch. 295, ยง 21; February 1, 1992.
KANSAS COMMENT, 1996
This section extends the implied warranty of merchantability to leases. It is based on section 84-2-314, with changes only to make the provision applicable to leases. See 1996 Kansas Comments to 84-2-314 for further discussion. Subsection (1) makes clear, however, that this warranty does not arise in a finance lease. In a finance lease, the main role of the lessor is to finance the transaction. The lessee looks to the manufacturer or supplier for any warranties. See 1996 Kansas Comment 1 to 84-2a-209. This is in accord with prior case law. See AgriStor Leasing v. Meuli, 634 F. Supp. 1208 (D. Kan. 1986) (finance lessor not "merchant" and so makes no implied warranty of merchantability).
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