Laws vary from state to state but state statutes often provide for the creation of an implied warranty of merchantability by a lessor of goods in a lease transaction—such as for office equipment, computers, telephone systems, heavy machinery, home furniture, motor vehicles, or electronics.

For goods to be merchantable and comply with the implied warranty of merchantability they generally must:

• pass without objection in the trade under the description in the lease agreement;

• in the case of fungible goods, are of fair average quality within the description;

• be fit for the ordinary purposes for which goods of that type are used;

• run, within the variation permitted by the lease agreement, of even kind, quality, and quantity within each unit and among all units involved;

• be adequately contained, packaged, and labeled as the lease agreement may require; and

• conform to any promises or affirmations of fact made on the container or label.

Other implied warranties may be provided by statute or arise from the lessor and lessee’s course of dealing or usage of trade (standard practices and methods in the industry).

In Nevada, as in many other states, the law provides for an implied warranty of merchantability in lease transactions for goods, which is applicable to various items such as office equipment, computers, and vehicles. Under Nevada law, for goods to be considered merchantable, they must meet certain criteria. They should conform to the lease's description and be of fair average quality if they are fungible. The goods must be suitable for the ordinary purposes for which such goods are used, be consistent in quality and quantity within and across units as allowed by the lease, and be properly contained, packaged, and labeled as required by the lease agreement. Additionally, they must match any claims made on their labels or packaging. Nevada may also recognize other implied warranties that arise from the customary practices in the industry or the previous interactions between the lessor and lessee. It's important for both lessors and lessees to understand these requirements to ensure compliance with the state's regulations on the leasing of goods.