Also known as: UCC 2-316 · U.C.C. § 2-316 · UCC § 2-316 · exclusion of warranties
Written by attorneys · grounded in primary & secondary sources — see below
A statutory rule permitting sellers to exclude all implied warranties in sales of goods by using expressions such as as is or with all faults. The language must call the buyer's attention to the exclusion and make plain that no implied warranty exists unless the circumstances indicate otherwise.
Apex Manufacturing sold a used industrial press to Lopez Machining through a purchase order stamped WITH ALL FAULTS in large bold type. Lopez later discovered the press malfunctioned repeatedly. The as is language excluded the implied warranties of merchantability and fitness so Lopez could not recover on those claims.
Pine Lines sold five used trailers to Continental Cargo under a purchase agreement containing the bold capitalized phrase TRAILERS SOLD WITH ALL FAULTS above the signature line. An earlier spec sheet had described the trailers as ideal for long-haul use. The final written disclaimer excluded the implied warranty of merchantability despite the prior description.
Select any source to read its text and confirm it supports the definition.
Pixel Refurbs sold refurbished laptops to BrightLine Studio through an online checkout that required acceptance of bold all-caps terms stating LAPTOPS SOLD AS IS WITH ALL FAULTS WITHOUT ANY WARRANTIES. Several laptops overheated and crashed after delivery. The as is clause excluded the implied warranty of merchantability even though the product page had described the laptops as perfect for professional use.
Yes. Expressions such as as is or with all faults exclude all implied warranties when they call the buyer's attention to the exclusion and make plain that no implied warranty exists. The language need not mention merchantability by name.
The clause prevents exclusion when pre-contract communications or other facts show the parties did not intend a total disclaimer. An affirmative description of the goods as production capable or job-site ready can supply such circumstances.
No separate conspicuousness requirement applies when the seller uses the statutory as is formulation. The phrase itself is recognized as calling the buyer's attention to the exclusion in common understanding.
Buyer examination or refusal to examine eliminates implied warranties only for defects the examination ought to have revealed. An as is clause operates independently to exclude all implied warranties unless circumstances indicate otherwise.