Under Article 2A, how are warranties described as being treated when conspicuous language waives them?

Under Article 2A, how are warranties described as being treated when conspicuous language waives them?

• A. Warranties may be waived with conspicuous language
• B. Warranties are always retained by the lessee
• C. Warranties are never waived
• D. Warranties automatically transfer to the lender

Answer: (A)

Warranties under Article 2A can be waived if the waiver language is conspicuous in the lease agreement. Conspicuous means clearly noticeable and easy to understand, typically in writing and set apart from boilerplate text. When such a clearly stated clause exists, implied warranties—such as merchantability or fitness for a particular purpose—may be disclaimed. If there’s no conspicuous waiver, those warranties may apply. The notion that warranties are always retained, never waived, or automatically transfer to the lender does not align with how conspicuous waiver language functions in Article 2A.

Warranties under Article 2A can be waived if the waiver language is conspicuous in the lease agreement. Conspicuous means clearly noticeable and easy to understand, typically in writing and set apart from boilerplate text. When such a clearly stated clause exists, implied warranties—such as merchantability or fitness for a particular purpose—may be disclaimed. If there’s no conspicuous waiver, those warranties may apply. The notion that warranties are always retained, never waived, or automatically transfer to the lender does not align with how conspicuous waiver language functions in Article 2A.