Also known as:with all faults · all faults · as is
Written by attorneys · grounded in primary & secondary sources — see below
An expression in a contract for the sale or lease of goods that disclaims implied warranties. The phrase alerts the buyer or lessee that the goods are accepted in their existing condition with no warranty of quality or fitness.
Sources & Authorities
How it applies
Common Examples
6
Used Machinery Sale
Ava Adebayo sold used machinery to Apollo Energy under a contract stating the equipment was transferred with all faults. Apollo later discovered defects and sued for breach of the implied warranty of merchantability. The court dismissed the claim because the phrase had disclaimed all implied warranties.
Office Equipment Lease
Abigail Alvarez leased office equipment to Andre Antoine under a lease providing the goods were supplied with all faults. When the copiers failed to function, Andre could not recover on an implied warranty of fitness theory. The disclaimer language had excluded that warranty.
Fleet Vehicle Purchase
Aisha Ahmed sold used fleet vehicles to Artemis Logistics under a contract stating the vehicles were sold with all faults. Artemis discovered extensive rust and sought rescission. Recovery was barred because the phrase had eliminated implied warranties of merchantability.
Select any source to read its text and confirm it supports the definition.
Statutes
Federal Rules
Uniform Acts
Model Codes
Restatements
Dictionaries
Factory Equipment Transfer
Amber Alonzo sold factory equipment to Ashford Manufacturing under an agreement that transferred the assets with all faults. Ashford later claimed breach of the implied warranty of fitness for a particular purpose. The court held the disclaimer effective under UCC § 2-316(3)(a).
Restaurant Appliance Sale
Albert Allen sold used restaurant appliances to Apex Dynamics under a contract providing the items were sold with all faults. Apex later alleged the appliances were unfit. The claim failed because the language had excluded all implied warranties.
Computer Hardware Deal
An actor purchased computer hardware under a contract stating the goods were accepted with all faults. When the hardware proved incompatible with existing systems, the buyer sued on an implied warranty theory. The court enforced the disclaimer and dismissed the action.
Common questions
Frequently Asked
3
Does the phrase 'with all faults' exclude both implied warranties of merchantability and fitness for a particular purpose?+
Yes. The expression calls the buyer's attention to the exclusion of warranties and makes plain that no implied warranty exists unless circumstances indicate otherwise.
Supporting sources
Must the disclaimer language be conspicuous to be effective under the UCC?+
The statute requires only that the language in common understanding call attention to the exclusion. Conspicuousness is required for lease transactions but is not expressly mandated for sales of goods.
Supporting sources
Can a buyer still recover for express warranties when goods are sold with all faults?+
Yes. The phrase disclaims only implied warranties. Any express warranty created by the seller's affirmations or descriptions remains enforceable.
Supporting sources
384 U.S. 436 (1966)Evidence
…him to exercise them. Moreover, it is consistent with our legal system that we give at least as much protection to these rights as is given in the jurisdictions described. We deal in our country with rights grounded in a specific requirement of the Fifth Amendment of the Constitution, whereas other jurisdictions arrived…