§ 4-2-316 — Exclusion or modification of warranties

(1) Words or conduct
relevant to the creation of an express warranty and words or conduct tending to
negate or limit warranty shall be construed wherever reasonable as consistent with
each other; but subject to the provisions of this article on parol or extrinsic evidence
(section 4-2-202), negation or limitation is inoperative to the extent that such
construction is unreasonable.

(2) Subject to subsection (3) of this section, 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 all implied warranties of fitness is sufficient if it
states, for example, that There are no warranties which extend beyond the
description on the face hereof.

(3) Notwithstanding subsection (2) of this section:

(a) Unless the circumstances indicate otherwise, all implied warranties are
excluded by expressions like as is, with all faults, or other 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 usage of trade.

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

Legislative History

Source: L. 65: p. 1311, � 1. C.R.S. 1963: � 155-2-316.