Can a business disclaim implied warranties in California?

What the Law Says

California law allows businesses to disclaim implied warranties—but only under narrow, strictly defined conditions. The rules come from the Uniform Commercial Code (UCC), adopted in California as Division 2 of the Commercial Code.

Implied warranties—like the warranty of merchantability and fitness for a particular purpose—arise automatically under law unless properly disclaimed. In California, these are governed by Commercial Code § 2316.

To disclaim the implied warranty of merchantability, the disclaimer must mention 'merchantability' and be conspicuous—meaning it must be written so that a reasonable person would notice it (e.g., boldface, capital letters, or contrasting type).

A disclaimer of the implied warranty of fitness for a particular purpose must be in writing and also be conspicuous. Unlike some other states, California does not allow oral disclaimers of implied warranties in consumer sales.

Importantly, implied warranties cannot be disclaimed in consumer transactions involving goods sold for personal, family, or household use if the seller is a merchant who regularly deals in such goods—unless the disclaimer complies fully with § 2316 and is conspicuous.

Statutory Text

Subject to subsection (3), 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.

— Cal. Com. Code § 2316(2) — Exclusion or modification of warranties

Statutory Text

Where the seller is a merchant regularly dealing in goods of the kind, the implied warranty of merchantability is excluded or modified only if the language is conspicuous.

— Cal. Com. Code § 2316(3)(a) — Exclusion or modification of warranties

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