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Commercial Law Regulations

Beware: Inspecting Goods May Waive Implied Warranty Protections

When purchasing goods though an invoice, contract or otherwise, it is important to understand that a mere inspection of goods prior to purchase could waive implied warranty protections. A seller may effectively modify, or entirely exclude, implied warranties under the Uniform Commercial Code (UCC) by requiring a buyer to inspect, test or examine goods prior to purchase.

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Businesses large and small, particularly those involved with the purchase of complex machinery and equipment, should be aware of the risks associated with inspecting products and components prior to purchase. The development of adequate inspection processes and procedures is essential given the potential to waive implied warranty protections by inspecting or testing equipment.

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