Priety, a manufacturer of chairs, sold 150 chairs to Shilpa, the owner of a furniture shop. This sale was made after both the parties entered into a contract. The term of the contract read, "Seller hereby disclaims all implied warranties." Unlike the rest of the contract, this term was written in all capital letters and placed prominently in the document. In this scenario, Priety has effectively made a disclaimer of:

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A general disclaimer such as, "ALL IMPLIED WARRANTIES ARE HEREBY DISCLAIMED," if sufficiently conspicuous, would disclaim the warranty of fitness for a particular purpose. It would not, however, exclude the warranty of merchantability because the word merchantability was not used. In the given scenario, an effective disclaimer of the implied warranty of fitness for a particular purpose was made by Priety, but not an implied warranty of merchantability.

Priety, a Manufacturer of Chairs, Sold 150 Chairs to Shilpa