Wednesday, March 28, 2007

Conspicuous under the UCC

Under the UCC, to disclaim the implied warranty of merchantability, the disclaimer must be conspicuous--it must stand out from the surrounding test so the reader would notice it. ALL-CAPS is typical:

* * *
Seller warrants that the goods sold are new and free from substantive defects in workmanship and materials.

SELLER'S LIABILITY UNDER THIS WARRANTY IS LIMITED TO REPLACEMENT OF GOODS OR REPAIR OF DEFECTS OR REFUND OF THE PURCHASE PRICE AT SELLER'S SOLE OPTION. NO OTHER WARRANTY, EXPRESS OR IMPLIED, INCLUDING THE WARRANTY OF MERCHANTABILITY, IS MADE BY SELLER, AND NONE MAY BE IMPUTED OR PRESUMED.

Buyer must pay all sales taxes, tariffs, and other governmental charges. This Contract is governed by the Texas law.

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But I like this:

* * *
Seller warrants that the goods sold are new and free from substantive defects in workmanship and materials.
_________________________________

Seller's liability under this warranty is limited to replacement of goods or repair of defects or refund of the purchase price at seller's sole option. No other warranty, express or implied, including the warranty of merchantability, is made by seller, and none may be imputed or presumed.
_________________________________

Buyer must pay all sales taxes, tariffs, and other governmental charges. This Contract is governed by the Texas law.
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