30-2-314. Implied warranty -- merchantability -- usage of trade. (1) Unless excluded or modified (30-2-316), 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.
     (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 (30-2-316) other implied warranties may arise from course of dealing or usage of trade.

     History: En. Sec. 2-314, Ch. 264, L. 1963; R.C.M. 1947, 87A-2-314.