What Does 'Sold As Is' Mean in California Law?
The California Commercial Code governs goods sold in California. The code discusses the implied and express warranties that accompany the sale of goods. One way to disclaim a warranty is to state that the good is sold "as is."
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Express Warranties
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An express warranty is a promise or an affirmation of fact that concerns an item sold that "becomes part of the basis of the bargain," according to the California Commercial Code. The warranty can take the form of a statement or a model. When a seller states that goods are sold "as is," he declares that he is not creating any express warranties about how the goods will perform or their quality.
Implied Warranty of Merchantability
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Section 2314 of the code describes an implied warranty of merchantability. Since the warranty is implied, it does not have to be explicitly stated to exist. This warranty protects the consumer by requiring the good to be "merchantable" and usable for its "ordinary purposes." A seller can make this warranty ineffective by writing the words "as is" in the sales document where it specifically discusses the warranty of merchantability.
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Implied Warranty for Fitness
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In some situations where goods are sold, the seller knows of the buyer's specific need for an item and the buyer relies on the seller to provide the good. An implied warranty for fitness for a particular purpose exists in these instances per section 2315 of the California Commercial Code. Section 2316 of the code allows this warranty to be disclaimed using the "as is" statement.
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