Colorado Code
Part 3 - General Obligation and Construction of Contract
§ 4-2-316. Exclusion or Modification of Warranties

Source: L. 65: p. 1311, § 1. C.R.S. 1963: § 155-2-316.
Prior Uniform Statutory Provision: None. See sections 15 and 71, Uniform Sales Act.
Purposes:

In order to bring the transaction within the scope of "refused to examine" in paragraph (b), it is not sufficient that the goods are available for inspection. There must in addition be a demand by the seller that the buyer examine the goods fully. The seller by the demand puts the buyer on notice that he is assuming the risk of defects which the examination ought to reveal. The language "refused to examine" in this paragraph is intended to make clear the necessity for such demand.
Application of the doctrine of "caveat emptor" in all cases where the buyer examines the goods regardless of statements made by the seller is, however, rejected by this Article. Thus, if the offer of examination is accompanied by words as to their merchantability or specific attributes and the buyer indicates clearly that he is relying on those words rather than on his examination, they give rise to an "express" warranty. In such cases the question is one of fact as to whether a warranty of merchantability has been expressly incorporated in the agreement. Disclaimer of such an express warranty is governed by subsection (1) of the present section.
The particular buyer's skill and the normal method of examining goods in the circumstances determine what defects are excluded by the examination. A failure to notice defects which are obvious cannot excuse the buyer. However, an examination under circumstances which do not permit chemical or other testing of the goods would not exclude defects which could be ascertained only by such testing. Nor can latent defects be excluded by a simple examination. A professional buyer examining a product in his field will be held to have assumed the risk as to all defects which a professional in the field ought to observe, while a nonprofessional buyer will be held to have assumed the risk only for such defects as a layman might be expected to observe.
Cross References:
Point 2: Sections 4-2-202, 4-2-718 and 4-2-719.
Point 7: Sections 4-1-205 and 4-2-208.
Definitional Cross References:
"Agreement". Section 4-1-201.
"Buyer". Section 4-2-103.
"Contract". Section 4-1-201.
"Course of dealing". Section 4-1-205.
"Goods". Section 4-2-105.
"Remedy". Section 4-1-201.
"Seller". Section 4-2-103.
"Usage of trade". Section 4-1-205.