Cengage Advantage Books: Law for Business 18th Edition by John Ashcroft ,Janet Ashcroft

Exercise 29

A representative of ADT Security Services met with John and Elaine Rose and told them that with an AOT security system they would never lose their house to a fire and that the alarm and fire detection system would save the lives of the Roses' dogs and family members in the event of a fire. John Rose and ADT entered into a two-page written service agreement in which ADT agreed to install an alarm system and provide security and fire detection services. Two months later, the Roses' house caught fire, presumably homo struck by lightning, The ADT smoke alarms in the house failed to transmit a fire alarm signal and the house burned to the ground. In the resulting lawsuit, ADT argued that the service agreement Rose signed expressly contradicted and disclaimed any representations made by the ADT salesperson. Further, it argued that the disclaimer in the agreement specifically disclaimed both "the implied warranties of merchantability and fitness" and was printed tin bold, capital letters. Had the implied warranties been properly excluded?