True or False: A merchant must provide a disclaimer that a product is sold "AS IS" to avoid misunderstandings regarding warranties.

When a product is sold "AS IS," this statement indicates that the seller is not providing any warranties or guarantees regarding the condition or functionality of the item being sold. This type of disclaimer is essential for preventing misunderstandings between the buyer and the seller about what the buyer can expect from the product. Without this clear communication, a buyer might assume that the product comes with certain warranties or assurances, which could lead to disputes if issues arise post-purchase.

Many jurisdictions require sellers to make it clear when a product is sold "AS IS" to protect both parties effectively. This practice helps ensure that buyers are fully aware of the risks associated with purchasing a product in its current condition, without added assurances from the seller. By providing this disclaimer, the merchant minimizes liability related to any defects or issues that may not be evident at the time of sale, thus clarifying the terms of the transaction for all parties involved.