Edward Cate, Jr., D/b/a Cate’s Transmission Service, Petitioner v. Dover Corporation, Respondent

Summary

The Texas Supreme Court reversed the appellate court and remanded, holding that a written disclaimer of the implied warranty of merchantability must be conspicuous to a reasonable person and that the disclaimer in this case was not, rendering it unenforceable; the court also found no genuine issue of material fact that the buyer had actual knowledge of the disclaimer. The decision was accompanied by concurring and dissenting opinions, the former urging legislative prohibition of such disclaimers and the latter rejecting the majority's allowance of an actual‑knowledge exception.