Implied Warranty

Definition

An Implied Warranty is a promise regarding the quality or serviceability of goods that arises from the nature and circumstances of a sale, rather than from explicit statements.

Purpose

Implied warranties protect consumers by ensuring that products meet certain minimum standards of quality and functionality, even if no explicit warranty is provided by the seller.

Examples of Use

• The implied warranty of merchantability ensures that a purchased item is fit for the general purposes for which it is sold.
• The implied warranty of fitness for a particular purpose applies when a seller knows the specific use a buyer has in mind for a product and the buyer relies on the seller's expertise to select a suitable item.

Related Terms

• Express Warranty: A specific guarantee about the quality or functionality of a product explicitly stated by the seller.
• Merchantability: The condition of being fit for sale.
• Fitness for a Particular Purpose: The suitability of a product for a specific use intended by the buyer.

Notes

Implied warranties are automatically in effect upon the sale of goods unless explicitly disclaimed by the seller, often requiring clear and conspicuous language.