Office Supply Co., Inc. v. Basic/Four Corporation
United States District Court for the Eastern District of Wisconsin
538 F.Supp. 776 (1982)
Office Supply Co. (plaintiff) purchased computer hardware and leased software from Basic/Four Corporation (defendant) under a fully integrated contract containing a ninety-day express warranty and an italicized disclaimer of all other express or implied warranties, after Office Supply's president unsuccessfully tried to renegotiate the warranty terms. After the ninety-day period expired, software defects emerged, and Office Supply sued for lost income and expenses, arguing the disclaimer was ineffective and that Basic had warranted future performance; both parties moved for summary judgment.
Whether a warranty disclaimer that does not meet the UCC's formal "conspicuous" standard (such as a capitalized heading or contrasting type) may still be enforceable if the buyer had actual knowledge of the disclaimer before entering the contract.