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 Georgia, as in many states, the regulation of disclaimers in contracts is influenced by the Uniform Commercial Code (UCC), which Georgia has adopted. Under the UCC, particularly Article 2 which deals with the sale of goods, warranties can be either express or implied. Express warranties are affirmations of fact or promises explicitly made by the seller, while implied warranties arise by operation of law, such as the warranty of merchantability or the warranty of fitness for a particular purpose. Georgia law allows for the disclaimer or modification of warranties, but such disclaimers must be conspicuous and specific. For example, the warranty of merchantability can be disclaimed with language like 'as is' or 'with all faults,' if it is conspicuous. However, disclaimers are subject to certain limitations; for instance, they cannot be unjust or in violation of public policy. Additionally, under the Magnuson-Moss Warranty Act, a federal law, if a product comes with a written warranty and is sold to a consumer, certain standards regarding the disclaimer of warranties must be met. Disclaimers serve to inform the buyer of the risks and limit the seller's liability, but they must be crafted in accordance with both state and federal laws to be effective.