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    PracticeCPA®CPA REG Practice Exam 2Question 64
    Hard1 markMultiple Choice
    Area II: Business LawREGBusiness LawContracts

    CPA · Question 64 · Area II: Business Law

    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
    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.
    Question 63All questionsQuestion 65

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