ExpertHard1 markMultiple Choice
CPA · Question 64 · Area II: Business Law
Under the Sales Article of the UCC, the warranty of title:
Under the Sales Article of the UCC, the warranty of title:
Answer options:
A.
Can be disclaimed by a general disclaimer like 'as is'.
B.
Must be in writing to be effective.
C.
Can be disclaimed only by specific language or circumstances.
D.
Cannot be disclaimed.
How to approach this question
Recall that Warranty of Title is special. 'As Is' kills merchantability, but NOT title. You must say 'I don't warrant title'.
Full Answer
C.Can be disclaimed only by specific language or circumstances.✓ Correct
C
The warranty of title is implied in every contract for the sale of goods. Unlike other implied warranties, it cannot be disclaimed by general language such as 'as is' or 'with all faults'. It can only be disclaimed by specific language or by circumstances that give the buyer reason to know the seller does not claim title (e.g., a sheriff's auction).
Common mistakes
Thinking 'As Is' disclaims the warranty of title.
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