Dorman v. International Harvester Co.
Court of Appeal of California
120 Cal. Rptr. 516 (1975)
William Dorman (plaintiff) bought a tractor from International Harvester (IHC) (defendant) under a sales contract that disclaimed the implied warranties of merchantability and fitness for a particular purpose in print only slightly larger than the surrounding text, in the same color, without bold formatting or a heading, positioned just above the signature line; only the phrase "merchantability and fitness for a particular purpose shall apply" was italicized, which, read in isolation, misleadingly suggested those warranties did apply. After the tractor repeatedly broke down, Dorman sued for breach of the implied warranties, and the trial court entered judgment notwithstanding the verdict for IHC.
Whether, to be valid, a disclaimer provision must be conspicuous, meaning stated in clear and distinct language and prominently set forth in large, bold print positioned to compel notice.