Opinion ID: 2621549
Heading Depth: 1
Heading Rank: 3

Heading: The Waivers

Text: The State's major focus before this court is the waiver the buyer is required to agree to before purchase. The State argues that the waiver requirements, in addition to the defendants taking advantage of the buyers, should convince this court that unconscionable acts have occurred. With respect to phentermine, DVM required the buyer to agree to the following waiver: By choosing `I Agree' at the bottom of this page, you agree to release from liability and hold harmless DVM Enterprises, Inc., DVM Medical Consultants, Inc., CybRxpress Pharmacies, Inc., CybRxpress Web Services, Inc., 2U-Netmail, LLC, their affiliates, subsidiaries, directors, officers, employees, representatives, and independent contractors from all causes of action, suits, penalties, liens, judgments, liabilities, obligations, losses, actual or consequential damages, actual or threatened claims which may arise at any time by reason of, relating to, arising directly or indirectly out of any matter whatsoever related to the prescription of Phentermine HCL. The waiver for Meridia contained substantially similar language. The waiver, by its express terms, applies to the following five entities: (1) DVM Enterprises, Inc. (the present defendant); (2) DVM Medical Consultants, Inc.; (3) CybRxpress Pharmacies, Inc.; (4) CybRxpress Web Services, Inc.; and (5) 2U-Netmail, L.L.C. The waiver also refers to the affiliates, subsidiaries, directors, officers, employees, representatives, and independent contractors of these five entities. The State argues that the waivers include waivers of the warranty of merchantability and the warranty of fitness for a particular purpose which, according to its claim, adds support to its argument that the waivers are unconscionable under the KCPA. We disagree that the waivers relate to warranty of merchantability and warranty of fitness for several reasons. Rather, we noted in ConfiMed.com that the waivers related to liability. Moreover, the waivers related to the prescriptions of Meridia and phentermine, not the quality of the drugs themselves. A distinction must be drawn between the prescription for a medication and the medication. The waiver only applied to the prescription and would arise if Dr. Thompson were negligent in prescribing the drug. The Uniform Commercial Code (UCC) defines the implied warranty of merchantability as follows: (2) Goods to be merchantable must be at least such as (a) pass without objection in the trade under the contract description; and (b) in the case of fungible goods, are of fair average quality within the description; and (c) are fit for the ordinary purposes for which such goods are used; and (d) run, within the variations permitted by the agreement, of even kind, quality and quantity within each unit and among all units involved; and (e) are adequately contained, packaged, and labeled as the agreement may require; and (f) conform to the promises or affirmations of fact made on the container or label if any. K.S.A. 84-2-314(2). Thus, in the case of the implied warranty of merchantability, the warranty applies to the quality of the goods. The State does not contend that the quality of the medication was deficient. Again, it must be noted that the State admitted in its response to DVM and Thompson's motion for summary judgment that each of the online buyers received the medication they requested, in the amount requested, and that all medications were authentic. In the case of the implied warranty of fitness for a particular purpose, the UCC defines the warranty as follows: Where the seller at the time of contracting has reason to know any particular purpose for which the goods are required and that the buyer is relying on the seller's skill or judgment to select or furnish suitable goods, there is unless excluded or modified under the next section an implied warranty that the goods shall be fit for such purpose. K.S.A. 84-2-315. DVM and Thompson argue that the buyer picks out the medication and therefore does not rely on the skill or judgment of the seller. In this case, the goods are to be used for their usual, ordinary purpose. See International Petroleum Services, Inc. v. S & N Well Service, Inc., 230 Kan. 452, 461, 639 P.2d 29 (1981) (When goods are acquired for the ordinary purposes for which such goods are generally used, no implied warranty of fitness for a particular purpose arises.). Finally, the waivers do not qualify as waivers of implied warranty under the UCC. In the case of the implied warranty of merchantability, K.S.A. 84-2-316(2) requires the waiver to be conspicuous and mention the word merchantability. With respect to the implied warranty of fitness for a particular purpose, the UCC requires that such waivers be conspicuous. K.S.A. 84-2-316(2). Both warranties can be disclaimed with the following type of language: There are no warranties which extend beyond the description on the face hereof. K.S.A. 84-2-316(2). In the present case, the waivers do not specifically address warranties either expressed or implied. DVM and Thompson correctly argue that even if the waivers were improper under K.S.A. 2001 Supp. 50-639, seeking a waiver of merchantability and fitness for a particular purpose does not require a finding of unconscionability under K.S.A. 2001 Supp. 50-627(b)(7). Instead, it is one factor to be considered. [A]n attempt to restrict potential warranties is not itself an unconscionable act per se. [Citation omitted.] Rather, the attempted disclaimer is one element the court must examine in combination with other facts present in the case in determining whether the seller acted unconscionably. Schweizer v. Dekalb Swine Breeders, Inc., 954 F. Supp. 1495, 1504 (1997). Moreover, any attempt to disclaim such warranties is void in Kansas. K.S.A. 2001 Supp. 50-639(e). The State also argues that the defendants have engaged in unconscionable acts because they took advantage of the buyers, which is a factor of unconscionability pursuant to K.S.A. 2001 Supp. 50-627(b)(1). However, the buyers  in this case the agents for the Attorney General  received exactly what they asked for. See ConfiMed.com, 272 Kan. at 1323 (As the trial court pointed out, Nelson and Crawford paid for Viagra and received Viagra.). The same is true in this case. The online buyers received exactly what they asked for. The record supports the district court's conclusion that the actions of the defendants did not involve deception or unequal bargaining conduct, nor did their actions resemble any of the statutory examples of unconscionable acts or any of the factors this court has identified as unconscionable under K.S.A. 2001 Supp. 50-627(b).