Lazur Corp.entered into a contract with Baker Suppliers,Inc.to purchase a used word processor from Baker.Lazur was engaged in the business of selling new and used word processors to the general public.The contract required Baker to ship the goods to Lazur by common carrier pursuant to the following provision in the contract: "FOB - Baker Suppliers,Inc.loading dock." Baker also represented in the contract that the word processor had been used for only 10 hours by its previous owner.The contract included the provision that the word processor was being sold "as is" and this provision was in larger and different type style than the remainder of the contract.With regard to the contract between Lazur and Baker:
A)an implied warranty of merchantability does not arise unless both Lazur and Baker are merchants.
B)the "as is" provision effectively disclaims the implied warranty of title.
C)no express warranties are created by the contract.
D)the "as is" provision disclaims implied warranties because it is conspicuous.

Question

Quizplus · Accepted Answer

According to UCC section 2-316(3) (a),sellers may disclaim either implied warranty by using such terms as "with all faults," "as is," and "as they stand." Some courts have held that these terms must be conspicuous to be effective as disclaimers.