What Is an Implied Warranty of Merchantability?

A lot of people believe that if there’s no written warranty for something they buy — a smartphone, car, or kitchen appliance — then there’s no warranty protection. However, the sale of some goods may include another type of warranty — an implied warranty.

One implied warranty is the “implied warranty of merchantability.” This unspoken warranty assumes that a product you buy from a business will be in working order. If you’ve got a warranty issue and questions about when an implied warranty applies, a warranty lawyer can help.

Implied Warranties for Consumer Goods

A warranty is a promise by a product seller or manufacturer to fix a product if something goes wrong.

“Implied warranties” are an unspoken promise that the goods sold by a retailer will do what they’re supposed to do. Implied warranties aren’t the same as express warranties. Express warranties are written and spell out your rights if there’s a problem with the product.

The implied warranty of merchantability is one of two types of implied warranties that apply to the purchase of consumer goods. If you buy an item, the law assumes it will be in good working order and fit for its ordinary purpose. This means items shouldn’t be broken, unsafe, or unusable right out of the box. For example, a toaster should toast bread. A vacuum cleaner should pick up dirt. A new car should run properly.

This type of warranty is implied because it’s automatic — you don’t need a written agreement or special terms for it to apply.

The other implied warranty is the implied warranty of fitness for a particular purpose. This warranty applies when a buyer relies on the seller’s expertise to select a product for a specific purpose.

When Does the Implied Warranty of Merchantability Apply?

Most everyday purchases from stores or companies come with the implied warranty of merchantability. The idea is that goods are “merchantable” if the seller is a merchant who deals in goods of that kind.

The warranty covers:

• New products: This includes both online and in-store purchases from a business. Whether you buy a TV from a retail store or a website, the implied warranty automatically applies.
• Some used products: This depends on the seller’s promise. For example, if a dealership advertises a used car as being in good condition, the implied warranty may apply.

However, there are instances when you don’t have the protection of the implied warranty of merchantability. It doesn’t cover:

• Private sales: If you buy something from a private seller such as a yard sale or Facebook Marketplace, the implied warranty doesn’t apply. These transactions are “as-is” sales. This means that you accepted the product in its current condition, faults included.
• “As-is” sales: If a product is clearly sold “as-is” or with a disclaimer that no warranties apply, there is no implied warranty of merchantability. For example, a car dealership selling a car with a notice that the sale is “as-is” doesn’t come with an implied warranty. However, some states forbid businesses from selling consumer products “as is.” In those states, sellers can’t avoid implied warranty obligations.
• Disclaimers: Some businesses include language in their contracts or receipts that limits or removes the implied warranty of merchantability. Governing Law

Implied warranties are governed by state law for the most part. This is different from express warranties, which are governed by federal law under the Magnuson-Moss Warranty Act. The federal warranty law does, however, place restrictions on attempts to limit implied warranties.

Your Rights Under an Implied Warranty of Merchantability

If you buy a defective product that doesn’t live up to the implied warranty of merchantability, the law gives you options for resolving the problem. You can request that the seller:

• Repair or replace the item
• Give you a refund or credit

You may have to give the seller or manufacturer a reasonable amount of time to correct the issue before demanding a refund. If they fail to fix the problem within a reasonable timeframe, you can push for a refund.

Always keep your receipts, warranty information, and copies of your communications with the seller. This documentation can be helpful if the issue worsens or if legal action becomes necessary.

Suing for an Implied Warranty Breach

In addition to consumer rights, you also have the right to file a lawsuit or complain to a government agency.

If the seller or manufacturer doesn’t live up to their warranty obligations — a breach of the implied warranty of merchantability — and you’re injured, you may be able to file a lawsuit. In this case, being “injured” could mean suffering financial losses. Most disagreements revolve around whether the use of the product matches its intended purpose or ordinary use.

You can also report faulty products to the Federal Trade Commission (FTC) or a similar state agency.

Contact a Warranty Lawyer

Contact a local warranty lawyer if you need legal advice about warranty laws. A consumer protection lawyer can discuss your options under state and federal consumer protection laws and represent you in a breach of warranty or product liability case.