Michigan Compiled Laws
174-1962-2A-2 - Part 2 Formation and Construction of Lease Contract (440.2851...440.2871)
Section 440.2864 - Limiting, Negating, Excluding, or Modifying Warranties; Construction of Words or Conduct.

Sec. 2A214.
(1) Words or conduct relevant to the creation of an express warranty and words or conduct tending to negate or limit a warranty must be construed wherever reasonable as consistent with each other, but, subject to the provisions of section 2A202 on parol or extrinsic evidence, negation or limitation is inoperative to the extent that the construction is unreasonable.
(2) Subject to subsection (3), to exclude or modify the implied warranty of merchantability or any part of it, the language must mention "merchantability", be by a writing, and be conspicuous. Subject to subsection (3), to exclude or modify any implied warranty of fitness, the exclusion must be by a writing and be conspicuous. Language to exclude all implied warranties of fitness is sufficient if it is in writing, is conspicuous, and states, for example, "There is no warranty that the goods will be fit for a particular purpose".
(3) Notwithstanding subsection (2), but subject to subsection (4), all of the following apply:
(a) Unless the circumstances indicate otherwise, all implied warranties are excluded by expressions like "as is", or "with all faults", or by other language that in common understanding calls the lessee's attention to the exclusion of warranties and makes plain that there is no implied warranty, if in writing and conspicuous.
(b) If the lessee before entering into the lease contract has examined the goods or the sample or model as fully as desired or has refused to examine the goods, there is no implied warranty with regard to defects that an examination ought in the circumstances to have revealed.
(c) An implied warranty may also be excluded or modified by course of dealing, course of performance, or usage of trade.
(4) To exclude or modify a warranty against interference or against infringement (section 2A211) or any part of it, the language must be specific, be by a writing, and be conspicuous, unless the circumstances, including course of performance, course of dealing, or usage of trade, give the lessee reason to know that the goods are being leased subject to a claim or interest of any person.
History: Add. 1992, Act 101, Eff. Sept. 30, 1992

Structure Michigan Compiled Laws

Michigan Compiled Laws

Chapter 440 - Uniform Commercial Code

Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102)

Article 2A - Leases (440.2801...440.2982)

174-1962-2A-2 - Part 2 Formation and Construction of Lease Contract (440.2851...440.2871)

Section 440.2851 - Lease Contract; Enforcement by Action or Defense; Conditions; Sufficiency of Description or Writing; Determination of Term.

Section 440.2852 - Final Written Expression; Parol or Extrinsic Evidence.

Section 440.2853 - Effect of Seal Affixed to Writing.

Section 440.2854 - Lease Contract; Sufficiency to Show Agreement; Conduct; Open Terms.

Section 440.2855 - Firm Offer; Assurances to Hold Offer Open.

Section 440.2856 - Offer to Make Lease Contract; Manner of Acceptance; Lapse.

Section 440.2857 - Repealed. 2012, Act 86, Eff. July 1, 2013.

Section 440.2858 - Lease Agreement; Modification or Rescission; Waiver; Retraction.

Section 440.2859 - Supply Contract; Extension of Benefits of Supplier Promises and of Warranties to Lessee; Limitations; Effect of Modification or Rescission; Retention of Rights.

Section 440.2860 - Express Warranties; Creation.

Section 440.2861 - Warranty Against Claim or Interest in Goods; Claim by Way of Infringement; Specifications Furnished by Lessee.

Section 440.2862 - Implied Warranty of Merchantability; Other Implied Warranties.

Section 440.2863 - Implied Warranty of Fitness for a Particular Purpose.

Section 440.2864 - Limiting, Negating, Excluding, or Modifying Warranties; Construction of Words or Conduct.

Section 440.2865 - Inconsistent Warranties; Intent; Rules of Construction.

Section 440.2866 - Warranty; Extension to Persons in Family, Household, or to Guest; Exclusion, Modification, or Limitation.

Section 440.2867 - Lease Contract; Identification of Goods; Absence of Explicit Agreement.

Section 440.2868 - Lease Contract; Insurable Interest in Goods.

Section 440.2869 - Risk of Loss; Passage to Lessee.

Section 440.2870 - Risk of Loss; Repudiation; Default.

Section 440.2871 - Casualty to Identified Goods Before Delivery or Risk of Loss Passes.