Texas Business & Commerce Code - Section 2.316. Exclusion Or Modification Of Warranties

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§ 2.316. EXCLUSION OR MODIFICATION OF WARRANTIES.  (a) 
Words or conduct relevant to the creation of an express warranty and 
words or conduct tending to negate or limit warranty shall be 
construed wherever reasonable as consistent with each other;  but 
subject to the provisions of this chapter on parol or extrinsic 
evidence (Section 2.202) negation or limitation is inoperative to 
the extent that such construction is unreasonable.
	(b)  Subject to Subsection (c), to exclude or modify the 
implied warranty of merchantability or any part of it the language 
must mention merchantability and in case of a writing must be 
conspicuous, and to exclude or modify any implied warranty of 
fitness the exclusion must be by a writing and conspicuous.  
Language to exclude all implied warranties of fitness is sufficient 
if it states, for example, that "There are no warranties which 
extend beyond the description on the face hereof."
	(c)  Notwithstanding Subsection (b)                                            
		(1)  unless the circumstances indicate otherwise, all 
implied warranties are excluded by expressions like "as is", "with 
all faults" or other language which in common understanding calls 
the buyer's attention to the exclusion of warranties and makes 
plain that there is no implied warranty;  and
		(2)  when the buyer before entering into the contract 
has examined the goods or the sample or model as fully as he desired 
or has refused to examine the goods there is no implied warranty 
with regard to defects which an examination ought in the 
circumstances to have revealed to him;  and
		(3)  an implied warranty can also be excluded or 
modified by course of dealing or course of performance or usage of 
trade.
	(d)  Remedies for breach of warranty can be limited in 
accordance with the provisions of this chapter on liquidation or 
limitation of damages and on contractual modification of remedy 
(Sections 2.718 and 2.719).
	(e)  The implied warranties of merchantability and fitness 
shall not be applicable to the furnishing of human blood, blood 
plasma, or other human tissue or organs from a blood bank or 
reservoir of such other tissues or organs.  Such blood, blood plasma 
or tissue or organs shall not for the purpose of this Title be 
considered commodities subject to sale or barter, but shall be 
considered as medical services.
	(f)  The implied warranties of merchantability and fitness 
do not apply to the sale or barter of livestock or its unborn young.

Acts 1967, 60th Leg., p. 2343, ch. 785, § 1, eff. Sept. 1, 1967.  
Amended by Acts 1979, 66th Leg., p. 190, ch. 99, § 1, eff. May 2, 
1979.

Last modified: August 10, 2007