57A-2A-212. Implied warranty of merchantability.(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.(2)Goods to be merchantable must be at least such as(a)Pass without objection in the trade under the description in the lease agreement;(b)In the case of fungible goods, are of fair average quality within the description;(c)Are fit for the ordinary purposes for which goods of that type are used;(d)Run, within the variation permitted by the lease agreement, of even kind, quality and quantity within each unit and among all units involved;(e)Are adequately contained, packaged and labeled as the lease agreement may require; and(f)Conform to any promises or affirmations of fact made on the container or label.(3)Other implied warranties may arise from course of dealing or usage of trade. Source: SL 1989, ch 419, §1.
South Dakota Legal Code