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 Pennsylvania, the concept of an implied warranty of merchantability in lease transactions is recognized. This warranty implies that leased goods, such as office equipment, computers, and vehicles, must meet certain standards to be considered merchantable. These goods must be suitable for the purposes for which such goods are ordinarily used, match the description in the lease agreement, and be of consistent quality and quantity as specified. They should also be properly packaged and labeled as required by the agreement, and conform to any claims made on their packaging or labels. Additionally, other implied warranties may arise from the specific dealings between the lessor and lessee or from the customary practices within the relevant industry. It's important to note that while these general principles apply, specific applications can vary, and an attorney can provide detailed advice based on the particular circumstances of a lease transaction.