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HomeCommercial CodeDiv. 2Ch. 3§ 2316 Warranty Creation And Limits

§ 2316 Warranty Creation And Limits

Commercial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 2316 Warranty Creation And Limits

This law explains how promises about a product's quality (warranties) are treated, especially how they can be limited or excluded.

Key Takeaways

  • •Express warranties can only be limited if the language is reasonable and clear.
  • •To exclude implied warranties, the seller must use clear, conspicuous language like "as is" or "with all faults".
  • •If the buyer fully examines the product or refuses to examine it, no implied warranty covers defects that should have been discovered.

Example

You buy a used car that the seller calls "as is" and you don't inspect it before buying.

Because the seller used the phrase "as is" and you looked at the car, the law says the implied warranty of fitness for a particular purpose is excluded, so you can't later claim the car had hidden defects the seller should have fixed.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 2316 Warranty Creation And Limits

(1) Words or conduct relevant to the creation of an express warranty and words or conduct tending to negate or limit warranty shall be construed wherever reasonable as consistent with each other; but subject to the provisions of this division on parol or extrinsic evidence (Section 2202) negation or limitation is inoperative to the extent that such construction is unreasonable. (2) Subject to subdivision (3), to exclude or modify the implied warranty of merchantability or any part of it the language must mention merchantability and in case of a writing must be conspicuous, and to exclude or modify any implied warranty of fitness the exclusion must be by a writing and conspicuous. Language to exclude all implied warranties of fitness is sufficient if it states, for example, that “There are no warranties which extend beyond the description on the face hereof.” (3) Notwithstanding subdivision (2) (a) Unless the circumstances indicate otherwise, all implied warranties are excluded by expressions like “as is,” “with all faults” or other language which in common understanding calls the buyer’s attention to the exclusion of warranties and makes plain that there is no implied warranty; and (b) When the buyer before entering into the contract has examined the goods or the sample or model as fully as he desired or has refused to examine the goods there is no implied warranty with regard to defects which an examination ought in the circumstances to have revealed to him; and (c) An implied warranty can also be excluded or modified by course of dealing or course of performance or usage of trade. (4) Remedies for breach of warranty can be limited in accordance with the provisions of this division on liquidation or limitation of damages and on contractual modification of remedy (Sections 2718 and 2719). (Enacted by Stats. 1963, Ch. 819.)

Last verified: January 10, 2026

Key Terms

performancecontractbreachdamagesremedywarrantymerchantabilityexamination

Related Statutes

  • § 11305 Bank Liability For Payment Order Breach
  • § 7302 Through Bill Liability
  • § 10508 Lessor Default Remedies
  • § 10523 Lessee Default Remedies
  • § 1304 Good Faith Contract Obligation

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Commercial Code. Section 2316.
View Official Source