14-2-314. IMPLIED WARRANTY: MERCHANTABILITY; USAGE OF TRADE.

1. Unless excluded or modified (Section 316), a warranty that the goods shall be merchantable is implied in a contract for their sale if the seller is a merchant with respect to goods of that kind. Under this section the serving for value of food or drink to be consumed either on the premises or elsewhere is a sale.
2. Goods to be merchantable must be at least such as:
   1. Pass without objection in the trade under the contract description; and
   2. In the case of fungible goods, are of fair average quality within the description; and
   3. Are fit for the ordinary purposes for which such goods are used; and
   4. Run, within the variations permitted by the agreement, of even kind, quality and quantity within each unit and among all units involved; and
   5. Are adequately contained, packages, and labeled as the agreement may require; and
   6. Conform to the promises or affirmations of fact made on the container or label if any.
3. Unless excluded or modified (Section 316) other implied warranties may arise from the course of dealing or usage of trade.
4. Notwithstanding this section or section 315 of this Chapter there is no implied warranty on the sale of cattle, hogs, sheep, horses, mules, goats, poultry or rabbits that such cattle, hogs, sheep, horses, mules, goats, poultry or rabbits are free from disease.
5. Notwithstanding this section or section 315 of this Chapter there are not implied warranties which arise on the sale of human blood, blood plasma, or other human tissue or organs from a blood bank, clinic, hospital or other reservoir of such blood, tissue or organs.