§ 36-2-316. Exclusion or modification of warranties.

264 words·~1 min read·/sc/title-36-commercial-code/chapter-2/commercial-code-sales/36-2-316·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)If the agreement creates an express warranty words disclaiming it are inoperative.

(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 the implied warranty of merchantability or of fitness for a particular purpose must be specific, and if the inclusion of such language creates an ambiguity in the contract as a whole it shall be resolved against the seller.

(3)Notwithstanding subsection

(a)unless the circumstances indicate otherwise, all implied warranties are excluded by specific 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, between merchants, by usage of trade.

(4)Remedies for breach of warranty can be limited in accordance with the provisions of this chapter on liquidation or limitation of damages and on contractual modification of remedy (SECTIONS 36-2-718 and 36-2-719).