§ 26-1-2-316 — 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 IC 26-1-2-202 on parol
or extrinsic evidence, negation or limitation is inoperative to the extent
that such 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 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):
(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; and
(d) with respect to the sale of cattle, hogs, or sheep, there is no
implied warranty that the cattle, hogs, or sheep are free from
disease, if the seller shows that all state and federal regulations
concerning animal health have been complied with; and
(e) with respect to a sale of audio or visual entertainment
products, as defined by IC 26-2-6-1, made as a result of a
solicitation through a mail order catalog, it is sufficient to exclude
all implied warranties in connection with the sale of any product
in the catalog, if the contract is in writing and the language in the
contract conspicuously states that:
(i) the product is sold "as is" or "with all faults"; and
(ii) the entire risk as to the quality and performance of the
product is with the buyer.
(4) Remedies for breach of warranty can be limited in accordance
with the provisions of IC 26-1-2-718 and IC 26-1-2-719 on liquidation
or limitation of damages and on contractual modification of remedy.
Formerly: Acts 1963, c.317, s.2-316. As amended by Acts 1980,
P.L.167, SEC.1; P.L.254-1983, SEC.1.