What is a necessary condition for a seller to disclaim an Implied Warranty of Merchantability?

Prepare for the Residential Builder's Salesperson Exam. Use our materials with flashcards and multiple choice questions, each with hints and explanations. Get exam-ready today!

A necessary condition for a seller to disclaim an Implied Warranty of Merchantability is that it must be disclosed clearly and conspicuously. In legal terms, the Implied Warranty of Merchantability ensures that goods sold are of average acceptable quality and suitable for their intended purpose. To disclaim this warranty, the seller must provide a clear and visible statement that communicates the disclaimer to the buyer. This requirement helps protect consumers by ensuring they are aware of the limitations on their rights before finalizing a purchase, thus preventing misunderstandings that could arise from vague or hidden disclaimers.

The clarity and conspicuousness of the disclaimer are crucial because if a buyer is not aware of the disclaimer, it undermines the purpose of the warranty itself and might lead to disputes. By requiring a clear disclosure, the law aims to maintain fairness in transactions, giving the buyer the opportunity to make informed decisions.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy