Which of the Following Is Needed in Order for the Implied

Which of the following is needed in order for the implied warranty of merchantability to be applied?

A) Both parties must be merchants and a sale, not a lease, must be involved.
B) Both parties must be merchants, and either a sale or lease must be involved.
C) The seller must be a merchant and a sale, not a lease, must be involved.
D) The seller must be a merchant, and either a sale or lease must be involved.
E) The seller must be a merchant, goods valued at over $500 must be involved, and either a sale or lease must be involved.