Cengage Advantage Books: Fundamentals of Business Law Today 10th Edition by Roger LeRoy Miller

Exercise 3

Implied Warranties. Tandy purchased a washing machine from Marshall Appliances. The sales contract included a provision explicitly disclaiming all express and implied warranties, including the implied warranty of merchantability. The disclaimer was printed in the same size and color as the rest of the contract. The machine turned out to be a "lemon" and never functioned properly. Tandy sought a refund of the purchase price, claiming that Marshall had breached the implied warranty of merchantability. Can Tandy recover her payment, notwithstanding the warranty disclaimer in the contract? Explain. (See Warranties.)