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This entry was published on 2014-09-22
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Exclusion or Modification of Warranties
Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 2, PART 3
Section 2--316. Exclusion or Modification of Warranties.

(1) Words or conduct relevant to the creation of an express warranty
and words or conduct tending to negate or limit warranty shall be
construed wherever reasonable as consistent with each other; but subject
to the provisions of this Article on parol or extrinsic evidence
(Section 2--202) negation or limitation is inoperative to the extent
that such construction is unreasonable.

(2) Subject to subsection (3), to exclude or modify the implied
warranty of merchantability or any part of it the language must mention
merchantability and in case of a writing must be conspicuous, and to
exclude or modify any implied warranty of fitness the exclusion must be
by a writing and conspicuous. Language to exclude all implied warranties
of fitness is sufficient if it states, for example, that "There are no
warranties which extend beyond the description on the face hereof. "

(3) Notwithstanding subsection (2)

(a) unless the circumstances indicate otherwise, all implied

warranties are excluded by expressions like "as is", "with

all faults" or other language which in common understanding

calls the buyer's attention to the exclusion of warranties

and makes plain that there is no implied warranty; and

(b) when the buyer before entering into the contract has examined

the goods or the sample or model as fully as he desired or

has refused to examine the goods there is no implied warranty

with regard to defects which an examination ought in the

circumstances to have revealed to him; and

(c) an implied warranty can also be excluded or modified by

course of dealing or course of performance or usage of trade.

(4) Remedies for breach of warranty can be limited in accordance with
the provisions of this Article on liquidation or limitation of damages
and on contractual modification of remedy (Sections 2--718 and 2--719).