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 North Carolina, disclaimers in contracts are subject to both the Uniform Commercial Code (UCC) as adopted by the state and relevant case law. Under North Carolina General Statutes (N.C.G.S.), particularly Article 25 - 2-316, certain warranties can be disclaimed or modified. A disclaimer of the warranty of merchantability must be conspicuous and mention 'merchantability' to be valid. Similarly, disclaiming the warranty of fitness for a particular purpose requires a written and conspicuous disclaimer. However, North Carolina law does not allow for the exclusion or limitation of warranties in certain consumer goods transactions, as per the North Carolina Consumer Protection Act. This means that in some cases, regardless of the contract language, warranties may not be disclaimed. It's important for parties entering into a contract to understand the specific requirements for a valid disclaimer and the limitations imposed by state law. An attorney can provide guidance on drafting effective disclaimers and navigating the complexities of warranty law in North Carolina.