Section 36-2-314 - Implied warranty; merchantability; usage of trade(1) Unless excluded or modified (Section 36-2-316 ), 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.(3) Unless excluded or modified (Section 36-2-316 ) other implied warranties may arise from course of dealing or usage of trade.1966 (54) 2716; 1962 Code Section 10.2-314.