“As is”?

Originally published by David Coale.

CExchange sold several thousand used headphones and speakers to Top Wireless. Top Wireless complained about the quality of the goods; CE Exchange defended by reference to an “as is” clause in their contract documents. The Fifth Court found that the clause did not preclude Top Wireless’s claims and affirmed a jury verdict in its favor, noting:

• The jury’s finding on a contract-formation question “amounts to a determination that the ‘as is’ clause was not an operative part of the subject agreement”; and
• Alternatively, other jury findings established the fraudulent-inducement exception to the enforceability of such a clause, citing Prudential Ins. v. Jefferson Assocs., 896 S.W.2d 156 (Tex. 1995).

CExchange, LLC v. Top Wireless Wholesaler, No. 05-17-01318-CV (Aug. 23, 2019) (mem. op.).

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