(1)  Unless excluded or modified (Section 2--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
       (a) pass without  objection  in  the  trade  under  the  contract
           description; and
       (b) in  the  case  of fungible goods, are of fair average quality
           within the description; and
       (c) are fit for the ordinary purposes for which  such  goods  are
           used; and
       (d) run,  within  the  variations  permitted by the agreement, of
           even kind, quality and quantity within each  unit  and  among
           all units involved; and
       (e) are  adequately  contained,  packaged,  and  labeled  as  the
           agreement may require; and
       (f) conform to the promises or affirmations of fact made  on  the
           container or label if any.
  (3)  Unless  excluded  or  modified  (Section  2--316)  other  implied
warranties may arise from course of dealing or usage of trade.
Structure New York Laws
Part 3 - General Obligation and Construction of Contract
2-301 - General Obligations of Parties.
2-302 - Unconscionable Contract or Clause.
2-303 - Allocation or Division of Risks.
2-304 - Price Payable in Money, Goods, Realty, or Otherwise.
2-306 - Output, Requirements and Exclusive Dealings.
2-307 - Delivery in Single Lot or Several Lots.
2-308 - Absence of Specified Place for Delivery.
2-309 - Absence of Specific Time Provisions; Notice of Termination.
2-310 - Open Time for Payment or Running of Credit; Authority to Ship Under Reservation.
2-311 - Options and Cooperation Respecting Performance.
2-312 - Warranty of Title and Against Infringement; Buyer's Obligation Against Infringement.
2-313 - Express Warranties by Affirmation, Promise, Description, Sample.
2-314 - Implied Warranty: Merchantability; Usage of Trade.
2-315 - Implied Warranty: Fitness for Particular Purpose.
2-316 - Exclusion or Modification of Warranties.
2-317 - Cumulation and Conflict of Warranties Express or Implied.
2-318 - Third Party Beneficiaries of Warranties Express or Implied.
2-319 - F. O. B. and F. A. S. Terms.
2-320 - C. I. F. and C. & F. Terms.
2-323 - Form of Bill of Lading Required in Overseas Shipment; "Overseas".
2-324 - "No Arrival, No Sale" Term.
2-325 - "Letter of Credit" Term; "Confirmed Credit".
2-326 - Sale on Approval and Sale or Return; Rights of Creditors.
2-327 - Special Incidents of Sale on Approval and Sale or Return.