Bill Text: CA SB868 | 2011-2012 | Regular Session | Introduced

---

Bill Title: Lease contracts: warranties.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2012-01-31 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB868 Detail]

Download: California-2011-SB868-Introduced.html

---

BILL NUMBER: SB 868	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Walters

                        FEBRUARY 18, 2011

   An act to amend Section 10214 of the Commercial Code, relating to
contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 868, as introduced, Walters. Lease contracts: warranties.
   Existing law governs the rights and remedies of parties to lease
contracts, including specifying the creation, limitation, and
negation of various types of warranties on leased goods. Existing law
specifies the requirements to negate an implied warranty of
merchantability and an implied warranty of fitness.
   This bill would make nonsubstantive changes to those provisions.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 10214 of the Commercial Code is amended to
read:
   10214.  (a) Words or conduct relevant to the creation of an
express warranty and words or conduct tending to negate or limit a
warranty  must   shall  be construed
wherever reasonable as consistent with each other; but, subject to
the provisions of Section 10202 on parol or extrinsic evidence,
negation or limitation is inoperative to the extent that the
construction is unreasonable.
   (b) Subject to subdivision (c), to exclude or modify the implied
warranty of merchantability or any part of it the language 
must   shall  mention "merchantability," be by a
writing, and be conspicuous. Subject to subdivision (c), to exclude
or modify any implied warranty of fitness  ,  the exclusion
 must   shall  be by a writing and be
conspicuous. Language to exclude all implied warranties of fitness is
sufficient if it is in writing, is conspicuous and states, for
example, "There is no warranty that the goods will be fit for a
particular purpose."
   (c) Notwithstanding subdivision (b), but subject to subdivision
(d),
   (1) Unless the circumstances indicate otherwise, all implied
warranties are excluded by expressions like "as is," or "with all
faults," or by other language that in common understanding calls the
lessee's attention to the exclusion of warranties and makes plain
that there is no implied warranty, if in writing and conspicuous;
   (2) If the lessee before entering into the lease contract has
examined the goods or the sample or model as fully as desired or has
refused to examine the goods, there is no implied warranty with
regard to defects that an examination ought in the circumstances to
have revealed; and
   (3) An implied warranty may also be excluded or modified by course
of dealing, course of performance, or usage of trade.
   (d) To exclude or modify a warranty against interference or
against infringement (Section 10211) or any part of it, the language
must be specific, be by a writing, and be conspicuous, unless the
circumstances, including course of performance, course of dealing, or
usage of trade, give the lessee reason to know that the goods are
being leased subject to a claim or interest of any person.