Section 2-A-214. Exclusion or Modification of Warranties.

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Terms Used In N.Y. Uniform Commercial Code 2-A-214

  • Contract: A legal written agreement that becomes binding when signed.
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Goods: means all things that are movable at the time of

    identification to the lease contract, or are fixtures

    (Section 2-A-309), but the term does not include money,

    documents, instruments, accounts, chattel paper, general

    intangibles, or minerals or the like, including oil and gas,

    before extraction. See N.Y. Uniform Commercial Code 2-A-103
  • Lessee: means a person who acquires the right to possession

    and use of goods under a lease. See N.Y. Uniform Commercial Code 2-A-103

(1) Words or conduct relevant to the creation of an express warranty and words or conduct tending to negate or limit a warranty must be construed wherever reasonable as consistent with each other; but, subject to the provisions of Section 2-A-202 on parol or extrinsic evidence, negation or limitation is inoperative to the extent that the construction is unreasonable.

(2) Subject to subsection (3), to exclude or modify the implied warranty of merchantability or any part of it the language must mention "merchantability", be by a writing, and be conspicuous. Subject to subsection (3), to exclude or modify any implied warranty of fitness the exclusion must be by a writing and be conspicuous. Language to exclude all implied warranties of fitness is sufficient if it is in writing, is conspicuous and states, for example, "there is no warranty that the goods will be fit for a particular purpose".

(3) Notwithstanding subsection (2), but subject to subsection (4),

(a) unless the circumstances indicate otherwise, all implied

warranties are excluded by expressions like "as is," or "with

all faults," or by other language that in common

understanding calls the lessee's attention to the exclusion

of warranties and makes plain that there is no implied

warranty, if in writing and conspicuous;

(b) if the lessee before entering into the lease contract has

examined the goods or the sample or model as fully as desired

or has refused to examine the goods, there is no implied

warranty with regard to defects that an examination ought in

the circumstances to have revealed; and

(c) an implied warranty may also be excluded or modified by

course of dealing, course of performance, or usage of trade.

(4) To exclude or modify a warranty against interference or against infringement (Section 2-A-211) or any part of it, the language must be specific, be by a writing, and be conspicuous, unless the circumstances, including course of performance, course of dealing, or usage of trade, give the lessee reason to know that the goods are being leased subject to a claim or interest of any person.