Cengage Advantage Books: Business Law 9th Edition by Arnold Goldman ,William Sigismond

Exercise 7

Maritime entered into a contract to purchase a helicopter from Fairchild. Among the relevant provisions typed into the agreement in normal size, in lowercase print on a regular printed form was a clause stating that the sale was to be made "as is" and that the seller gave no express or implied warranties except the warranty of title. Maritime had problems with the helicopter and sued Fairchild for an implied warranty, claiming that the helicopter was not merchantable. Fairchild defended, saying that the clause in the contract, which stated that no warranties were given with the sale of the helicopter, acted as a disclaimer of the implied warranty of merchantability. Is Fairchild correct? (Fairchild Industries v. Maritime Air Services, Ltd., 333 A.2d 313)