Disclaimers in contracts are generally included when one party wants to sell a product or service without any guarantee of its quality (merchantability) or suitability for the buyer’s intended use. Guarantees of a product’s quality or suitability are also known as warranties, and may be implied in the parties’ agreement without being written or spoken—usually by virtue of a state’s statutes adopting the Uniform Commercial Code’s provisions governing the sale of goods (Article 2)—or by court opinions (also known as common law or case law). Some states have laws (statutes) that prohibit the disclaimer of warranties; make disclaimers ineffective; and penalize parties who attempt to disclaim such warranties. Disclaimers in contracts also serve as an explicit warning to the parties of the risks in a sale or transaction and help avoid a subsequent claim that a party was unaware of such risks or was deceived regarding the presence of such risks.
In Alaska, as in many states, the regulation of disclaimers in contracts is influenced by the Uniform Commercial Code (UCC), which Alaska has adopted. Under the UCC, particularly Article 2 which governs the sale of goods, sellers can disclaim implied warranties of merchantability or fitness for a particular purpose through specific language in a contract. However, such disclaimers must be conspicuous, typically in writing, and presented in a way that would catch the attention of a reasonable person. If a disclaimer of warranty is not clear and conspicuous, it may not be enforceable. Additionally, Alaska statutes may provide certain consumer protections that limit the ability to disclaim warranties in consumer transactions. It is important for parties in Alaska to understand that while disclaimers can mitigate risk, they must be crafted in compliance with applicable laws to be effective. An attorney can provide specific guidance on creating valid disclaimers and understanding the interplay between state statutes and the UCC.