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 Washington State, the implied warranty of merchantability for leased goods is a legal concept that ensures leased goods meet certain minimum standards. This warranty is not explicitly detailed in Washington's statutes for lease transactions, but it is a principle that is generally recognized in commercial transactions under the Uniform Commercial Code (UCC), which Washington has adopted. According to the UCC, for goods to be considered merchantable, they must conform to the standards you've listed, such as passing without objection in the trade, being fit for the ordinary purposes for which such goods are used, and conforming to the agreed terms of the lease. If the leased goods fail to meet these criteria, the lessor may be in breach of the implied warranty of merchantability. Additionally, other implied warranties may arise from the course of dealing between the lessor and lessee or the general usage of trade in the relevant industry. It's important for both lessors and lessees to understand these warranties as they can affect their rights and obligations under a lease agreement.