§ 2-316 — Exclusion or Modification of Warranties

Section 2--316. Exclusion or Modification of Warranties.\n (1) Words or conduct relevant to the creation of an express warranty\nand words or conduct tending to negate or limit warranty shall be\nconstrued wherever reasonable as consistent with each other; but subject\nto the provisions of this Article on parol or extrinsic evidence\n(Section 2--202) negation or limitation is inoperative to the extent\nthat such construction is unreasonable.\n (2) Subject to subsection (3), to exclude or modify the implied\nwarranty of merchantability or any part of it the language must mention\nmerchantability and in case of a writing must be conspicuous, and to\nexclude or modify any implied warranty of fitness the exclusion must be\nby a writing and conspicuous. Language to exclude all implied warranties\nof fitness is sufficient if it states, for example, that "There are no\nwarranties which extend beyond the description on the face hereof. "\n (3) Notwithstanding subsection (2)\n (a) unless the circumstances indicate otherwise, all implied\n warranties are excluded by expressions like "as is", "with\n all faults" or other language which in common understanding\n calls the buyer's attention to the exclusion of warranties\n and makes plain that there is no implied warranty; and\n (b) when the buyer before entering into the contract has examined\n the goods or the sample or model as fully as he desired or\n has refused to examine the goods there is no implied warranty\n with regard to defects which an examination ought in the\n circumstances to have revealed to him; and\n (c) an implied warranty can also be excluded or modified by\n course of dealing or course of performance or usage of trade.\n (4) Remedies for breach of warranty can be limited in accordance with\nthe provisions of this Article on liquidation or limitation of damages\nand on contractual modification of remedy (Sections 2--718 and 2--719).\n