41-02.1-23. (2A-214) Exclusion or modification of warranties.
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/nd/title-41/chapter-41-02-1-leases/41-02-1-23·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
1. Words or conduct relevant to the creation of an express warranty and words or
conduct tending to negate or limit a warranty must be construed wherever reasonable
as consistent with each other but, subject to the provisions of section 41-02.1-11 on
parol or extrinsic evidence, negation or limitation is inoperative to the extent that the
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", be by a writing, and be
conspicuous. Subject to subsection 3, to exclude or modify any implied warranty of
fitness the exclusion must be by a writing and be conspicuous. Language to exclude
all implied warranties of fitness is sufficient if it is in writing, is conspicuous and states,
for example, "There is no warranty that the goods will be fit for a particular purpose".
3. Notwithstanding subsection 2, but subject to subsection 4:
a. Unless the circumstances indicate otherwise, all implied warranties are excluded
by expressions like "as is", or "with all faults", or by other language that in
common understanding calls the lessee's attention to the exclusion of warranties
and makes plain that there is no implied warranty, if in writing and conspicuous;
b. If the lessee before entering into the lease contract has examined the goods or
the sample or model as fully as desired or has refused to examine the goods,
there is no implied warranty with regard to defects that an examination ought in
the circumstances to have revealed; and
c. An implied warranty may also be excluded or modified by course of dealing,
course of performance, or usage of trade.
4. To exclude or modify a warranty against interference or against infringement (section
41-02.1-20) or any part of it, the language must be specific, be by a writing, and be
conspicuous, unless the circumstances, including course of performance, course of
dealing, or usage of trade, give the lessee reason to know that the goods are being
leased subject to a claim or interest of any person.