Implied Warranty
Definition
An implied warranty is a legal concept that assumes that certain warranties are implied by law into a contract, even if they are not expressly stated. These warranties ensure that goods sold meet a minimum standard of quality and are fit for the purpose for which they are intended. Implied warranties primarily exist to protect consumers from defective or substandard products.
Types of Implied Warranties
- Implied Warranty of Merchantability: This type of warranty promises that a product will do what it is supposed to do. For instance, a refrigerator will keep food cold, and shoes will be wearable.
- Implied Warranty of Fitness for a Particular Purpose: Occurs when a seller advises a buyer that a product is suitable for a particular use, and the buyer relies on that advice. If the product then fails to perform as advised, the buyer may be able to claim against the warranty.
Examples
- Electronic Goods: If a consumer buys a television, there is an implied warranty that it will display images and produce sound correctly.
- Automobiles: When purchasing a car, it comes with an implied warranty that it will run properly and is safe to drive.
- Home Appliances: A washing machine is assumed to have an implied warranty that it will wash clothes effectively when purchased.
Frequently Asked Questions (FAQs)
Q1: Can an implied warranty be disclaimed? A1: Yes, sellers can disclaim implied warranties, but this must be done clearly and conspicuously in the sales contract. The language used must be specific, often stating “as-is” or “with all faults.”
Q2: How long does an implied warranty last? A2: The duration of an implied warranty varies by state law, but it typically lasts for a reasonable period, considering the nature of the product.
Q3: What is an implied warranty of merchantability? A3: This warranty ensures that the goods sold by a merchant are fit for ordinary purposes, are of average quality, and are properly labeled and packaged.
Q4: Can implied warranties apply to services? A4: Yes, implied warranties can apply to services, ensuring that the services provided meet certain standards of quality and are performed with reasonable skill.
Q5: What is the major difference between an expressed warranty and an implied warranty? A5: An expressed warranty is explicitly stated, usually in writing, while an implied warranty is automatically provided by law even if not verbally or explicitly declared.
Related Terms
- Express Warranty: A warranty that is explicitly communicated, either in writing or verbally, detailing the specifics of the warranty coverage.
- Warranty of Title: Ensures that the seller has the right to sell the product, free from claims of others.
- Declaratory Judgment: A legal determination declaring the rights of parties involved without providing for or ordering enforcement.
Online References
- Federal Trade Commission (FTC) on Warranties
- Legal Information Institute - Implied Warranty
- Consumer Financial Protection Bureau
Suggested Books for Further Studies
- “Understanding Business and Legal Aspects” by Robert W. Emerson
- “Consumer Protection Law” by Dee Pridgen and Richard M. Alderman
- “Sales and Leases: A Problem-Solving Approach” by Scott J. Burnham
- “Consumer Law and Policy” by Iain Ramsay
Fundamentals of Implied Warranty: Business Law Basics Quiz
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