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 Uniform Commercial Code (UCC) is adopted, which includes provisions for the implied warranty of merchantability in lease transactions. This warranty applies to leased goods such as office equipment, computers, and vehicles, ensuring that they are fit for their ordinary purposes, match their descriptions, and meet certain quality standards. The goods must be of consistent quality within each unit and across all units, be properly packaged and labeled, and conform to any claims made on their packaging or labels. Additionally, other implied warranties may arise from the customary practices of the industry or the history of dealings between the lessor and lessee. It's important to note that while these warranties are implied by law, they can be modified or disclaimed under certain conditions as outlined in the UCC and relevant Washington statutes.