Which of the following statements are true regarding warranty disclaimers?

Which of the following statements are true regarding warranty disclaimers?

• A. The disclaimer must be conspicuous
• B. The word merchantability must appear in the disclaimer
• C. Both the word merchantability and conspicuousness are required
• D. Neither requirement applies

Answer: (C)

When a seller tries to exclude an implied warranty under the UCC, the disclaimer has to meet formal requirements to be enforceable. Specifically, to exclude the implied warranty of merchantability, the disclaimer must be in writing, be conspicuous, and mention the word “merchantability.” Conspicuousness means the warning is clearly noticeable, not hidden in fine print. Mentioning merchantability ensures the disclaimer targets that exact warranty rather than something broader. These two requirements work together: the conspicuous placement guarantees the buyer sees the disclaimer, and naming the word “merchantability” makes clear which warranty is being disclaimed. If either element is missing, the disclaimer may fail to exclude the merchantability warranty.

When a seller tries to exclude an implied warranty under the UCC, the disclaimer has to meet formal requirements to be enforceable. Specifically, to exclude the implied warranty of merchantability, the disclaimer must be in writing, be conspicuous, and mention the word “merchantability.” Conspicuousness means the warning is clearly noticeable, not hidden in fine print. Mentioning merchantability ensures the disclaimer targets that exact warranty rather than something broader.

These two requirements work together: the conspicuous placement guarantees the buyer sees the disclaimer, and naming the word “merchantability” makes clear which warranty is being disclaimed. If either element is missing, the disclaimer may fail to exclude the merchantability warranty.