Definition
A breach of warranty is an infraction where a seller or vendor violates the warranty—either express or implied—attached to a product or service. Warranties are assurances provided by the seller to the buyer about the characteristics, quality, and functionality of the product or service. A breach of warranty typically gives the buyer or consumer the right to seek remedies, such as repair, replacement, refund, or in some cases, compensation for damages.
Examples
- Express Warranty Breach:
- A car manufacturer promises that a car’s engine will last for five years but it fails within three years. The buyer can claim a breach of warranty.
- Implied Warranty Breach:
- If a consumer buys a refrigerator expecting it to keep food cool and it fails to do so within a reasonable period, that’s a breach of the implied warranty of merchantability.
- Fitness for a Particular Purpose:
- A seller suggests a specific laptop for video editing, but the laptop cannot handle video editing software efficiently. The buyer can claim a breach of warranty based on fitness for a particular purpose.
Frequently Asked Questions
What is the difference between express and implied warranty?
An express warranty is a clearly stated assurance by the seller, either orally or in writing, about the product’s quality or function. An implied warranty is an unwritten guarantee that the product will meet certain minimum standards of quality and performance.
Can a breach of warranty apply to services or only to goods?
Though less common, warranties, including breaches, can apply to services. For instance, a warranty could guarantee a specific outcome or quality of service, and failure to meet this would constitute a breach.
What remedies are available for a breach of warranty?
Remedies may include repair or replacement of the defective product, refund of the purchase price, and under certain conditions, monetary compensation for any consequential damages.
Is a warranty always enforceable?
A warranty is typically enforceable if it is reasonable and not deemed unconscionable. However, sellers can sometimes limit warranties or include disclaimers under specific conditions which may influence enforceability.
- Express Warranty: An explicit confirmation provided by the seller about the condition and functionality of the product.
- Implied Warranty: A legal presumption that the product will meet a minimum level of quality and suitability for its intended use.
- Merchantability: This implies that the product is fit for its ordinary use.
- Fitness for a Particular Purpose: A guarantee that a product will be suitable for a specific use provided by the buyer.
- Warranty Deed: A type of real estate deed guaranteeing clear title to the buyer.
- Infringement: Violation of a law, agreement, or right.
Online Resources
- Federal Trade Commission on Warranties
- Legal Information Institute - Breach of Warranty
- NOLO - Breach of Warranty
Suggested Books for Further Studies
- “Warranty Law in Sales Transactions” by Dr. Frank J. Doti
- “Consumer Protection Law Developments” by the American Bar Association
- “Uniform Commercial Code: Analyzing Warranty Rules” by William D. Hawkland
Fundamentals of Breach of Warranty: Business Law Basics Quiz
### What is a breach of warranty?
- [ ] A vendor overcharging for goods.
- [x] An infraction of an express or implied agreement regarding the quality or condition of the thing sold.
- [ ] A delay in product delivery.
- [ ] Cancelling an order.
> **Explanation:** A breach of warranty occurs when there's an infraction of an express or implied agreement about the quality or condition of the sold item.
### Which of these is an example of an express warranty?
- [ ] The expectation that all cars from a manufacturer are durable.
- [x] A statement that a car engine will last for at least five years.
- [ ] A belief that a computer is good for work.
- [ ] Assumption of quality based on brand reputation.
> **Explanation:** An express warranty is a specific claim by the manufacturer, such as stating a car engine will last for a certain period.
### What type of warranty is in place when a product is expected to be free from defects and fit for use?
- [x] Implied Warranty
- [ ] Written Warranty
- [ ] Oral Warranty
- [ ] Conditional Warranty
> **Explanation:** An implied warranty ensures a product is naturally fit for its intended use and free from defects.
### Can a warranty apply to services?
- [x] Yes, warranties can apply to services.
- [ ] No, warranties are only applicable to goods.
- [ ] Only if specifically written.
- [ ] Only if the service is financially significant.
> **Explanation:** Warranties can apply to services, guaranteeing the quality of service and specifying outcomes.
### Which remedy is typically available for a breach of warranty?
- [ ] Criminal charges against the seller.
- [x] Repair, replacement, or refund.
- [ ] Only replacement.
- [ ] Double the purchase price refund.
> **Explanation:** Remedies for breach of warranty usually include repair, replacement, or refund.
### What type of warranty guarantees a product meets a minimum level of quality and performance?
- [ ] Express Warranty
- [x] Implied Warranty
- [ ] Lifetime Warranty
- [ ] Extended Warranty
> **Explanation:** An implied warranty ensures a product achieves standard quality and performance.
### When does an implied warranty of merchantability apply?
- [ ] When a seller volunteers specific details about the product.
- [ ] Only under extended warranty conditions.
- [ ] For goods sold without any express warranty.
- [x] Automatically with the sale of goods.
> **Explanation:** Implied warranty of merchantability automatically applies with the sale of goods, ensuring standard quality and usability.
### Can sellers limit the scope of warranties?
- [x] Yes, sellers can include disclaimers or limitations.
- [ ] No, sellers have no power over warranties.
- [ ] Only under express warranty conditions.
- [ ] Never, warranty terms are always fixed.
> **Explanation:** Sellers can limit warranties through disclaimers or specific conditions.
### Does a breach of every warranty allow for monetary compensation?
- [ ] Yes, every breach allows compensation.
- [x] Not necessarily, it depends on the warranty's terms.
- [ ] It never does.
- [ ] Only under commercial transactions.
> **Explanation:** Monetary compensation depends on the terms of the specific warranty and the type of breach.
### Which term describes the right of a buyer to expect a product to be usable for the intended purpose?
- [ ] Warranty Deed
- [x] Fitness for a Particular Purpose
- [ ] Merchantability
- [ ] Express Warranty
> **Explanation:** Fitness for a Particular Purpose assures the buyer the product can perform a specified function.
Thank you for exploring the comprehensive insights into breach of warranty and challenging yourself with our detailed quiz. Keep advancing your knowledge in business law!
