§ 25-2A-214. Exclusion or modification of warranties. - North Carolina Statutes

§ 25‑2A‑214. Exclusion or modification of warranties.

(1)        Words or conductrelevant to the creation of an express warranty and words or conduct tending tonegate or limit a warranty must be construed wherever reasonable as consistentwith each other; but, subject to the provisions of G.S. 25‑2A‑202on parol or extrinsic evidence, negation or limitation is inoperative to theextent that the construction is unreasonable.

(2)        Subject tosubsection (3) of this section, to exclude or modify the implied warranty ofmerchantability, or any part of it, the language must mention"merchantability", by a writing, and be conspicuous.  Subject tosubsection (3) of this section, to exclude or modify any implied warranty offitness, the exclusion must be by a writing and be conspicuous.  Language toexclude all implied warranties of fitness is sufficient if it is in writing, isconspicuous, and states, for example, "There is no warranty that the goodswill be fit for a particular purpose."

(3)        Notwithstandingsubsection (2) of this section, but subject to subsection (4) of this section:

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

(b)        if the lesseebefore entering into the lease contract has examined the goods or the sample ormodel as fully as desired or has refused to examine the goods, there is noimplied warranty with regard to defects that an examination ought in thecircumstances to have revealed; and

(c)        an implied warrantymay also be excluded or modified by course of dealing, course of performance,or usage of trade.

(4)        To exclude ormodify a warranty against interference or against infringement (G.S. 25‑2A‑211)or any part of it, the language must be specific, be by a writing, and beconspicuous, unless the circumstances, including course of performance, courseof dealing, or usage of trade, give the lessee reason to know that the goodsare being leased subject to a claim or interest of any person. (1993,c. 463, s. 1.)