A retailer had made the sale of a room heater through an oral sales contract. Th

Question

A retailer had made the sale of a room heater through an oral sales contract. The room heater was later delivered to the consumer. A disclaimer of warranties was not made during the purchase but was later sent accompanying the product when it was delivered to the consumer. Which of the following statements in this case is true?

Even though the oral sales contract did not disclaim warranties, the disclaimer of warranties accompanying the goods is effective because it is in writing.

When the contract as made does not disclaim warranties, a disclaimer of warranties accompanying goods delivered later is not effective because it is a unilateral attempt to modify the contract.

This disclaimer of warranties is a binding part of the oral contract as the disclaimer was called to the attention of the buyer after the delivery was made.

This is a case of exclusion and surrender of warranties, where warranties can be excluded or modified by the agreement of parties. Since the disclaimer of warranties was made during delivery and not days after delivery, the exclusion is valid as long as it is in writing.

Explanation / Answer

For an oral contract, disclaimer must be brought to the attention of the customer and disclaimer of warranties accompanying goods delivered later is not effective because it is a unilateral or one sided attempt to modify the contract. Hence the correct option is c. When the contract as made does not disclaim warranties, a disclaimer of warranties accompanying goods delivered later is not effective because it is a unilateral attempt to modify the contract.

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