§ 25-2-316. Exclusion or modification of warranties. - North Carolina Statutes

§25‑2‑316.  Exclusion or modification of warranties.

(1)        Words or conductrelevant to the creation of an express warranty and words or conduct tending tonegate or limit warranty shall be construed wherever reasonable as consistentwith each other; but subject to the provisions of this article on parol orextrinsic evidence (G.S. 25‑2‑202) negation or limitation isinoperative to the extent that such construction is unreasonable.

(2)        Subject tosubsection (3), to exclude or modify the implied warranty of merchantability orany part of it the language must mention merchantability and in case of awriting must be conspicuous, and to exclude or modify any implied warranty offitness the exclusion must be by a writing and conspicuous. Language to excludeall implied warranties of fitness is sufficient if it states, for example, that"There are no warranties which extend beyond the description on the facehereof."

(3)        Notwithstandingsubsection (2)

(a)        unless thecircumstances indicate otherwise, all implied warranties are excluded byexpressions like "as is," "with all faults" or otherlanguage which in common understanding calls the buyer's attention to theexclusion of warranties and makes plain that there is no implied warranty; and

(b)        when the buyerbefore entering into the contract has examined the goods or the sample or modelas fully as he desired or has refused to examine the goods there is no impliedwarranty with regard to defects which an examination ought in the circumstancesto have revealed to him; and

(c)        an implied warrantycan also be excluded or modified by course of dealing or course of performanceor usage of trade.

(4)        Remedies for breachof warranty can be limited in accordance with the provisions of this article onliquidation or limitation of damages and on contractual modification of remedy(G.S. 25‑2‑718 and 25‑2‑719). (1965,c. 700, s. 1.)