(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.\n(2) Goods to be merchantable must at least:\n(a) Pass without objection in the trade under the description in the lease agreement;\n(b) In the case of fungible goods, be of fair average quality within the description;\n(c) Be fit for the ordinary purposes for which goods of that type are used;\n(d) Run, within the variation permitted by the lease agreement, of even kind, quality and quantity within each unit and among all units involved;\n(e) Be adequately contained, packaged and labeled as the lease agreement may require; and\n(f) Conform to any promises or affirmations of fact made on the container or label.\n(3) Other implied warranties may arise from course of dealing or usage of trade. [1989 c.676 §21]
Oregon Legal Code