“A valid ‘as is’ agreement prevents a buyer from holding a seller liable if the thing sold turns out to be worth less than the price paid.” —Vanmeter, Judge 

Facts: Evan Roberts purchased a used vehicle from Lanigan Auto Sales. The sales contract contained a clause stating that the vehicle was “sold as is.” Subsequently, Roberts obtained a report that stated that the vehicle had previously been involved in an accident and suffered damage to the undercarriage of the vehicle. Roberts sued Lanigan for damages, alleging that Lanigan breached express and implied warranties by not disclosing the vehicle’s prior damage and accident history. Lanigan maintained it had never represented the quality of the vehicle and filed a motion to dismiss Roberts’ action. The trial court dismissed Roberts’ action on the basis that the sales contract contained the express term that the vehicle was “sold as is.” Roberts appealed. 

Issue: Did the “sold as is” language of the sales contract bar Roberts’ action? 

Language of the Court: A valid “as is” agreement prevents a buyer from holding a seller liable if the thing sold turns out to be worth less than the price paid. Thus, by agreeing to purchase something “as is,” a buyer agrees to make his or her own appraisal of the bargain and to accept the risk that he or she may be wrong, and the seller gives no assurances, express or implied, concerning the value or condition of the thing sold. 

Decision: The court of appeals affirmed the trial court’s decision that the “sold as is” language in the sales contract prevented Roberts from recovering damages from Lanigan Auto Sales. 

Ethics Questions: Why do sellers include “sold as is” clauses in sales contracts? Did Roberts act ethically in trying to avoid the “sold as is” clause of the sales contract?