Warranty

A warranty is a formal promise or assurance made within a legal context. In the world of law, it serves as a specific type of contractual term. It is important to distinguish a warranty from a condition or an innominate term. A warranty is not considered a term that goes to the "root" of a contract. This means the entire contract does not fail if the warranty is broken. Instead, if a warranty is breached, the innocent party is usually entitled to damages. Damages are legal payments intended to compensate for the loss caused by the broken promise.

There are two primary ways that a warranty is created: express and implied. An express warranty is explicitly stated by the seller. This is often done through written documents or spoken words. For an express warranty to exist, the statement must be made to the buyer. Furthermore, that specific statement must have played a role in the buyer's decision to purchase the item. If the product does not match the description, the buyer can file a claim for breach of express warranty.

Implied warranties are different because they are unwritten. These promises arise from the nature of the transaction itself. They exist because of an inherent understanding between the buyer and the seller. In many jurisdictions, new goods are sold with implied warranties that the items are as advertised. However, used products are often sold "as is." When a product is sold "as is," it often means there are no implied warranties included in the sale.

Two specific types of implied warranties are very common in the sale of goods. The first is the warranty of merchantability. This requires that goods conform to ordinary buyer expectations. For example, fruit must look and smell good to meet trade standards. If a product has hidden defects, it may violate this warranty. The second is the warranty of fitness for a particular purpose. This applies when a buyer relies on a seller to select a specific good for a specific task. If a mechanic provides tires that are unsafe for snowy roads after being asked for snow tires, this warranty is breached.

Legal systems have developed many rules to manage these promises. In the United States, the Uniform Commercial Code (UCC) provides for implied warranties. Article 2 of the UCC is adopted with variations in each state. To strengthen protections, the Magnuson-Moss Warranty Act was passed in 1975. This federal law prevents companies from disclaiming implied warranties if they offer an express warranty. It also allows consumers to recover attorney fees in certain cases. Some states have added even more protections, such as "lemon laws" for motor vehicles or requirements for new home construction.

Warranties often include specific limits regarding time and scope. A common type is a warranty against defects in materials and workmanship. This promises that the manufacturer used proper materials and built the product correctly. Many warranties are time-limited, such as a 90-day warranty on a television. If the television fails on day 91, the buyer may be unable to claim damages. This is different from a performance warranty, which would promise the device works for a set duration. A lifetime warranty is also common, but it usually refers to the lifespan of the product's expected use rather than the buyer's life.

When a warranty is breached, the seller may resolve the issue by providing a refund or a replacement. In the United States, the UCC sets a statute of limitations for these claims. This is generally a four-year limit, though contracts can limit this to one year. Some warranties require that repairs be done by authorized service providers. However, the Magnuson-Moss Act allows owners to perform "Do It Yourself" repairs if the warranty does not cover labor. In such cases, the company must still provide the necessary parts at no charge. If a defective product causes physical injury, the situation may move into the area of product liability law.