Which statement accurately describes the effect of an 'as is' provision with respect to defect disclosures?

• A. Relieves the seller from all disclosure duties
• B. Nullifies the contract for undisclosed defects
• C. Requires the buyer to inspect thoroughly
• D. Does not excuse or circumvent the duty to disclose material defects

Answer: (D)

An "as is" clause deals with the condition you accept at purchase, but it does not erase the seller’s obligation to reveal known problems. If the seller knows about a defect that would matter to a reasonable buyer, they must disclose it regardless of an "as is" agreement. When a seller hides or fails to disclose such defects, remedies like misrepresentation or fraud can apply, and the contract isn’t automatically voided simply because there’s an "as is" clause. The buyer’s responsibility to inspect is a separate duty and does not substitute for the seller’s disclosure obligation. So, the statement that the clause does not excuse or circumvent the duty to disclose material defects is the correct understanding.