(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.
Structure New York Laws
Part 2 - Formation and Construction of Lease Contract
2-A-202 - Final Written Expression: Parol or Extrinsic Evidence.
2-A-204 - Formation in General.
2-A-206 - Offer and Acceptance in Formation of Lease Contract.
2-A-208 - Modification, Rescission and Waiver.
2-A-209 - Lessee Under Finance Lease as Beneficiary of Supply Contract.
2-A-212 - Implied Warranty of Merchantability.
2-A-213 - Implied Warranty of Fitness for Particular Purpose.
2-A-214 - Exclusion or Modification of Warranties.
2-A-215 - Cumulation and Conflict of Warranties Express or Implied.
2-A-216 - Third-Party Beneficiaries of Express or Implied Warranties.
2-A-218 - Insurance and Proceeds.