Written by attorneys · grounded in primary & secondary sources — see below
A contractual phrase used in the sale of goods to indicate that the buyer accepts the property in its existing condition. The phrase excludes all implied warranties when it calls the buyer's attention to the exclusion and makes plain that no warranty is given.
Sources & Authorities
How it applies
Common Examples
6
Used Car Purchase With Disclaimer
Willow West bought a used sedan from Westbrook Dynamics. The sales contract stated the vehicle was sold with all faults. After delivery Willow discovered the transmission was defective. She sued for breach of the implied warranty of merchantability. The court dismissed the claim because the phrase excluded all implied warranties.
Farm Equipment Sale As Is
Walker Valley Produce purchased a used harvester from Woodridge Manufacturing. The invoice contained the phrase with all faults in bold print. Two weeks later the harvester's engine failed. Walker Valley sued claiming an implied warranty of fitness. The court held the language barred the claim.
Office Furniture Liquidation
Whitestone Bank bought surplus desks and chairs from a bankrupt supplier. The bill of sale recited the goods were transferred with all faults. Upon inspection the bank found several chairs unstable. It sought damages for breach of warranty. The court ruled the disclaimer was effective.
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Industrial Machinery Transfer
Wendy Wu acquired a used conveyor system from Westbrook Dynamics under a contract stating the equipment was sold with all faults. The system later jammed and damaged inventory. Wendy claimed breach of the implied warranty of merchantability. The court enforced the disclaimer and dismissed the suit.
Restaurant Equipment Deal
Warren Wu bought a commercial oven from Woodridge Manufacturing. The purchase order included the words with all faults. The oven failed to maintain temperature. Warren sued alleging breach of warranty. The court found the language excluded implied warranties.
Warehouse Forklift Purchase
Whitney White purchased a used forklift from Walker Valley Produce. The agreement stated the forklift was sold with all faults. The forklift's brakes later failed causing minor damage. Whitney asserted an implied warranty claim. The court held the phrase barred recovery.
Common questions
Frequently Asked
4
Does the phrase with all faults exclude the implied warranty of merchantability?+
Yes. Under UCC § 2-316(3)(a) the phrase with all faults excludes all implied warranties when it calls the buyer's attention to the exclusion and makes plain that no warranty is given.
Supporting sources
Must the phrase with all faults appear in writing to be effective?+
No. The UCC permits the phrase in any form that in common understanding calls the buyer's attention to the exclusion. A writing is not required unless the circumstances indicate otherwise.
Supporting sources
Can a seller use with all faults to disclaim the implied warranty of fitness for a particular purpose?+
Yes. The same language that excludes the warranty of merchantability also excludes the warranty of fitness when it makes plain that no implied warranty exists.
Supporting sources
What happens if circumstances indicate the buyer did not understand the disclaimer?+
The disclaimer may fail. The UCC states that the phrase excludes warranties unless the circumstances indicate otherwise.
Supporting sources
431 U.S. 494, 503 (1977)Property
…a family be organized along ties of blood or formal adoptions, or be a similarly structured group sponsored by the State, as is the group home, should not be consequential in meeting the test of the zoning ordinance. So long as the group home bears the generic character of a family unit as a relatively permanent…