<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 57A-2A-212 - Implied warranty of merchantability. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073302Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2073302SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073302CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073302Normal-000000 { margin-top: 0; margin-bottom: 0; margin-left: 4.50in; text-indent: -4.00in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; } span.s2073302DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073302Normal-000001 { margin-top: 0; margin-bottom: 0; margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; } p.s2073302Normal-000002 { margin-top: 0; margin-bottom: 0; margin-left: 1.14in; text-indent: -0.44in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; } span.s2073302000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073302SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073302SCL-000004 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style></head><body><div><p dir="ltr" class="s2073302Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-2A-212"><span class="s2073302SENU">57A-2A-212</span></a><span xml:space="preserve" class="s2073302SENU">. </span><span class="s2073302CL">Implied warranty of merchantability.</span></p><p dir="ltr" class="s2073302Normal-000000"><span class="s2073302DefaultParagraphFont">(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.</span></p><p dir="ltr" class="s2073302Normal-000001"><span class="s2073302DefaultParagraphFont">(2)    Goods to be merchantable must be at least such as</span></p><p dir="ltr" class="s2073302Normal-000002"><span class="s2073302DefaultParagraphFont">(a)    Pass without objection in the trade under the description in the lease agreement;</span></p><p dir="ltr" class="s2073302Normal-000002"><span class="s2073302DefaultParagraphFont">(b)    In the case of fungible goods, are of fair average quality within the description;</span></p><p dir="ltr" class="s2073302Normal-000002"><span class="s2073302DefaultParagraphFont">(c)    Are fit for the ordinary purposes for which goods of that type are used;</span></p><p dir="ltr" class="s2073302Normal-000002"><span class="s2073302DefaultParagraphFont">(d)    Run, within the variation permitted by the lease agreement, of even kind, quality and quantity within each unit and among all units involved;</span></p><p dir="ltr" class="s2073302Normal-000002"><span class="s2073302DefaultParagraphFont">(e)    Are adequately contained, packaged and labeled as the lease agreement may require; and</span></p><p dir="ltr" class="s2073302Normal-000002"><span class="s2073302DefaultParagraphFont">(f)    Conform to any promises or affirmations of fact made on the container or label.</span></p><p dir="ltr" class="s2073302Normal-000001"><span class="s2073302DefaultParagraphFont">(3)    Other implied warranties may arise from course of dealing or usage of trade.</span></p><p dir="ltr" class="s2073302Normal"><span xml:space="preserve" class="s2073302000003"> </span></p><p dir="ltr" class="s2073302Normal"><span class="s2073302SCL">Source:</span><span xml:space="preserve" class="s2073302SCL-000004"> SL 1989, ch 419, § 1.</span></p></div></body></html>