Disclaimers in contracts are generally included when one party wants to sell a product or service without any guarantee of its quality (merchantability) or suitability for the buyer’s intended use. Guarantees of a product’s quality or suitability are also known as warranties, and may be implied in the parties’ agreement without being written or spoken—usually by virtue of a state’s statutes adopting the Uniform Commercial Code’s provisions governing the sale of goods (Article 2)—or by court opinions (also known as common law or case law). Some states have laws (statutes) that prohibit the disclaimer of warranties; make disclaimers ineffective; and penalize parties who attempt to disclaim such warranties. Disclaimers in contracts also serve as an explicit warning to the parties of the risks in a sale or transaction and help avoid a subsequent claim that a party was unaware of such risks or was deceived regarding the presence of such risks.
In Washington State, disclaimers in contracts are subject to both the Uniform Commercial Code (UCC) as adopted by the state and specific Washington statutes. Under the UCC, which Washington has adopted, sellers can disclaim implied warranties of merchantability and fitness for a particular purpose, but such disclaimers must be conspicuous and in writing. For example, to disclaim the warranty of merchantability, the language must mention 'merchantability' and, in the case of a written disclaimer, it must be conspicuous. Disclaimers of the warranty of fitness for a particular purpose must also be in writing and conspicuous. Washington law also requires that any disclaimer of express warranties be presented in a clear and unambiguous manner. However, there are limitations on disclaiming warranties for consumer goods under the Washington State Lemon Law and the Magnuson-Moss Warranty Act, a federal law that governs consumer product warranties. These laws may restrict the ability to disclaim warranties and provide remedies for consumers in cases of defective products. It is important for parties in Washington to carefully draft disclaimers to ensure they comply with applicable laws and fully inform the parties of the risks involved in the transaction.