The Seattle seller of a used aircraft discovered that its use of an “as is” clause in its general disclaimer of warranties did not suffice to exonerate it from the consequences of delivering an unairworthy aircraft, even after the buyer’s conditional acceptance of the aircraft. In Cozumel Leasing, LLC v. International Jets, Inc., the U.S. District Court for the Western District of Washington considered a situation in which the seller’s warranty disclaimer was held to run afoul of the special protection provided in Washington State to noncommercial buyers, by which warranty disclaimers are recognized only if they are explicitly negotiated and set forth with particularity the qualities and characteristics that are not being warranted. Since the seller’s standard “as is” clause failed to meet this standard, the court rejected the seller’s motion to dismiss the claims for breach and misrepresentation brought by the aggrieved buyer.
This post was drafted by Gardiner Davis, a partner in the Kansas City office of Spencer Fane. For more information, visit spencerfane.com.