Trucks & Trailers, Inc. (T&T), and United Delivery Service enter into a contract for a lease of trucks. T&T is a merchant who deals in goods of the kind leased. Under the UCC, an implied warranty of merchantability arises
a. automatically in lease contracts.
b. only if the lessee asks for it.
c. only if the lessor does not expressly disclaim it.
d. only in conjunction with sales contracts, not lease contracts.

A. automatically in lease contracts.

Explanation:

Trucks & Trailers, Inc. (T&T), and United Delivery Service enter into a contract for a lease of trucks and T&T is a merchant who deals in goods of the kind leased. Under the UCC, an implied warranty of merchantability arises automatically in lease contracts.

The implied warranties under the Uniform Commercial Codes are the "the warranty of merchantability and are commercially acceptable by the consumer of the goods that are to be sold and the warranty that the goods are fit to satisfy a particular purpose.

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