Can you disclaim warranty of merchantability




















Examples of this type of warranties include:. Any statement describing a product or influencing a buyer's decision to complete the transaction can be considered a form of warranty, even if the creation of the warranty is not intentional. A seller can easily disclaim express warranties by including statements in brochures, samples, and models stating that no warranty exists. In addition, salesmen should be cautious not to make verbal promises without a disclaimer.

In a sales contract , an express warranty can be disclaimed by a statement that excludes an express warranty.

An implied warranty, on the other hand, is a form of warranty that is implied by law. Basically, there are two kinds of implied warranty. In most places, implied warranties can be disclaimed. However, there are federal and state laws that impose restrictions on disclaimers on consumer goods. In order to disclaim implied warranties, sellers must inform buyers in writing that they will not be liable if their products are defective or fail to perform according to the buyers' expectations.

These presumptions are made because of the facts and circumstances surrounding the sale transaction for the particular product. The assurances are known as warranties, regardless of whether a seller makes them orally or in written form. Types of implied warranties include:.

Because there is no uniform federal product liability law , individual state laws dictate how a product manufacturer can disclaim implied warranties. The rules for how manufacturers can make such disclaimers are highly technical and specific, so as to protect the consumer as much as possible.

For example, such a claim must use specific, bold, conspicuous text. If a product maker disclaims the implied warranty known as the warranty of fitness for a particular purpose, then it must be done in an express manner by its verbatim name, for instance.

If a manufacturer disclaims every form of implied warranty , a consumer cannot obtain any recovery for warranty breaches. The practical impact of a disclaimer of the implied warranty of fitness for particular purpose means that the risk of unfitness of the product at issue is passed back to the consumer from the seller.

That said, consumers can still challenge the adequacy of disclaimers, so it is prudent to seek the consult of an attorney before making any such detrimental or final determinations.

The appellate court agreed with the trial court's finding that Ride Auto's fraudulent misrepresentations rendered the warranty disclaimer ineffective because Sorchaga would not have bought the truck or agreed to the warranty disclaimer if she knew the truck had severe engine problems. Not only did the appellate court agree with the trial court's finding on Sorchaga's breach of implied warranty claim, but it also upheld the trial court's award of attorneys' fees.

The lesson here is that a disclaimer of implied warranties can be a strong defense, but only when it is not rendered ineffective by the dealer's conduct. Unfortunately, Ride Auto had to learn this lesson the hard way. Toggle navigation. Home Insights Articles. Andricos As a compliance attorney, I often advise clients about the need to limit their advertising claims and contractual promises. Sorchaga v.

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