Legal Definitions - as-is warranty

An "as-is warranty" is a common legal term, though it's more accurately described as the absence of a warranty. When an item is sold "as-is," it means the seller is offering it in its current condition, with all its existing faults or defects, and without making any guarantees or promises about its quality, performance, or durability. The buyer accepts the item exactly "as it is" at the time of sale, assuming all risks for any problems that may arise after the purchase. This generally means the buyer has no legal recourse against the seller for issues discovered later, unless the seller actively concealed known defects or committed fraud.

• Example 1: Used Car from a Private Seller

  Scenario: David decides to sell his old sedan, which has over 150,000 miles on it, through a private listing. In the advertisement and on the bill of sale, he explicitly states, "Vehicle sold as-is, no warranty expressed or implied." A week after purchasing the car, the new owner, Emily, discovers that the air conditioning system is completely non-functional and requires an expensive repair.

  Explanation: Because David sold the car "as-is," Emily accepted the risk of any mechanical or functional problems, including the faulty air conditioning. David made no guarantees about the car's condition beyond what was visible or testable at the time of sale. Unless Emily can prove that David knew about the broken AC and intentionally hid this significant defect, she is responsible for the repair costs, as the "as-is" clause absolves David of responsibility for issues discovered after the sale.

• Example 2: Foreclosed Real Estate Property

  Scenario: A bank is selling a foreclosed house that has been vacant for several years and requires extensive repairs. The real estate listing and the purchase agreement clearly state that the property is being sold "as-is," and potential buyers are encouraged to conduct thorough inspections. A buyer, Sarah, purchases the house, and after closing, discovers a significant leak in the roof that was not apparent during her initial inspection due to dry weather.

  Explanation: The "as-is" clause in the real estate contract means Sarah agreed to purchase the property with all its existing defects, whether immediately visible or not, at the time of sale. While sellers typically have a duty to disclose known material defects, the "as-is" clause shifts a greater burden of discovery and repair onto the buyer for issues not fraudulently concealed. Sarah accepted the property in its current state, including the hidden roof leak, unless the bank actively hid knowledge of the leak.

• Example 3: Discounted Retail Item

  Scenario: A furniture store has a floor model sofa that has a small tear on the back cushion from being handled by customers. To clear inventory, they offer it at a significant discount, clearly marking it "Sold As-Is – Final Sale" on the tag and sales receipt. A customer, Michael, buys the sofa, and a month later, the frame develops a noticeable creak when sat upon.

  Explanation: By purchasing the sofa "as-is" and acknowledging it was a final sale, Michael accepted the risk of potential defects beyond just the visible tear, including structural issues like a creaking frame. The store explicitly disclaimed any warranty, meaning they are not obligated to repair or replace the sofa for the creaking frame, as Michael agreed to take it in its existing condition, accepting all inherent risks for the discounted price.