Enforceability Status
Express warranty exclusion clauses in Arkansas new construction contracts are generally enforceable. Arkansas does not have a comprehensive residential construction defect statute with mandatory warranty minimums. Warranty claims are governed by general contract law, the UCC (Ark. Code Title 4, Ch. 2), and the five-year statute of limitations for written contracts (Ark. Code section 16-56-111).
Legal Analysis
Arkansas law permits builders to define the scope of express warranties in residential construction contracts. Under Ark. Code section 4-2-316, sellers may exclude or modify implied warranties through conspicuous disclaimer language. Arkansas courts enforce warranty limitations consistent with general contract principles.
Arkansas courts recognize an implied warranty of habitability in new home construction. In Wawak v. Stewart (1983), the Arkansas Supreme Court held that builders of new homes impliedly warrant that the home is constructed in a workmanlike manner and suitable for habitation. The court noted that the implied warranty exists because buyers rely on the builder's skill and judgment.
Ark. Code section 16-56-112 establishes a five-year statute of repose for claims arising from improvements to real property. This provides an outer boundary for construction defect claims from substantial completion.
The Arkansas Deceptive Trade Practices Act (Ark. Code § 4-88-101 et seq.) prohibits deceptive and unconscionable trade practices. Misleading warranty representations may give rise to claims under this statute, which provides for actual damages and attorney's fees.
Relevant Arkansas Law
Establishes a five-year statute of repose for claims arising from improvements to real property.
Prohibits deceptive and unconscionable trade practices, providing actual damages and attorney's fees for violations.
Governs express and implied warranties in sales transactions, including provisions for exclusion and modification of warranties.
Related Cases
The Arkansas Supreme Court recognized an implied warranty of habitability in new home construction, holding that builders warrant their homes are fit for habitation.
Builders in Arkansas Using This Clause
What Arkansas Buyers Should Know
- Understand the Implied Warranty of Habitability Arkansas recognizes an implied warranty that new homes are fit for habitation. This provides baseline protection for serious construction defects regardless of express warranty exclusions.
- Note the Five-Year Statute of Repose Arkansas imposes a five-year statute of repose for construction defect claims from substantial completion. This is shorter than many states and may limit the window for claims.
- Review Humidity and Soil Exclusions Arkansas builder warranties commonly exclude damage from humidity, soil movement, settling, and severe weather. These exclusions can cover significant issues in Arkansas's climate.
- Document and Report Defects Promptly Provide written notice to the builder of any defects as soon as they are discovered. Timely documentation is essential for preserving both contractual and implied warranty claims.