Which statement describes the relationship between an 'as is' clause and seller liability?

• A. It does not relieve the seller of responsibility for material defects
• B. It reduces, but does not completely relieve, the seller of liability for disclosed defects
• C. It makes the buyer responsible for all issues found
• D. It relieves the seller of all liability

Answer: (A)

An "as is" clause means the buyer accepts the property in its current condition and the seller isn’t obligated to repair defects. But this clause doesn’t shield the seller from liability if there are material defects the seller knew about or if the seller misrepresented or concealed those defects. Material defects are significant problems that affect value, use, or safety, and attempting to hide or lie about them can lead to fraud or misrepresentation claims even when an as-is clause exists. That’s why this statement best describes the relationship: the clause does not relieve the seller of responsibility for material defects.