Ferguson contracted to buy a quantity of knitting yarn. After receipt he cut it and knitted it into sweaters. At this point, he discovered color variations from one piece to another. Ferguson refused to pay the agreed price, claiming that the yarn had been sold with a warranty of merchantability. The seller, Wilson Trading Corporation, sued to collect the contract price and pointed out that the sales contract provided, “no claims … shall be allowed if made after weaving, knitting, or processing, or more than ten days after receipt of shipment.” Ferguson viewed the time-limit clause as modifying the warranty of merchantability, which was stated explicitly elsewhere in the contract, and that the disclaimer was in confl ict with the warranty.

Will the disclaimer be viewed as negating the warranty? [ Wilson Trading Corp. v.

David Ferguson, Ltd., 244 N.E.2d 685 (New York).]