Express Warranty

AAA

DEFINITION of 'Express Warranty'

An agreement between the contract seller (dealer, manufacturer or independent company) and the buyer of a product to provide repair or replacement for covered components of the product for some specified time period. An express warranty is a seller's promise or guarantee that a buyer relies on when they purchase an item. Under the federal Magnuson-Moss Warranty Act, a company must provide a written express warranty if a product is sold for more than $15.

INVESTOPEDIA EXPLAINS 'Express Warranty'

This is a promise that the item will live up to the promise of the seller. For example, the warranty can say something like, "We guarantee all furniture against defects in construction for one year. When a structural defect is brought to our attention, we will repair or replace it." Most express warranties come from the manufacturer or are included in the sellers contract. It can also be created by a simple statement on an advertisement or a sign in the store.

RELATED TERMS
  1. Special Warranty Deed

    A special warranty deed is a deed in which the seller warrants ...
  2. Implied Warranty Of Habitability

    An unstated guarantee that a rental property meets basic living ...
  3. Caveat Emptor

    A Latin phrase for "let the buyer beware." The term is primarily ...
  4. Durables

    A category of consumer goods, durables are products that do not ...
  5. Warranty

    A type of guarantee that a manufacturer or similar party makes ...
  6. D’Oench Duhme Doctrine

    A banking rule which states that a borrower or guarantor cannot ...
RELATED FAQS
  1. Are waivers of subrogation clauses ever ineffective in preventing a third-party lawsuit?

    Sometimes waiver of subrogation clauses are ineffective at preventing a third-party lawsuits. In determining who is responsible ... Read Full Answer >>
  2. What is an alienation clause?

    Whether used in reference to insurance policies, mortgages or commercial loans, an alienation clause stipulates that should ... Read Full Answer >>
Related Articles
  1. Home & Auto

    New Home Repair Troubleshooting

    Think a new home means no repairs? Think again. Learn about common repair and maintenance items and how to cut your costs.
  2. Home & Auto

    Insure Your Future With A Career As An Actuary

    If you've got excellent math skills, they can add up to a lucrative career as an actuary.
  3. Home & Auto

    Did You Buy A Lemon?

    Find out how to fix a sour deal on your car purchase.
  4. Budgeting

    Extended Warranties: Should You Take The Bait?

    Avoid shelling out for these policies and you could save hundreds of dollars.
  5. Options & Futures

    Car Shopping: New Or Used?

    Don't get taken for a ride. Learn the pros and cons before the salesperson makes a pitch.
  6. Economics

    Understanding Covenants

    A covenant is a term placed in a loan that requires the borrower to either maintain or refrain from certain business activities.
  7. Economics

    What is Earnest Money?

    An earnest money deposit shows the seller that a buyer is serious about purchasing a property.
  8. Retirement

    Time To Hire A Senior Move Manager?

    Watch for these signs that you or an elderly family member may need to downsize and move somewhere easier to manange. A senior move manager can help.
  9. Retirement

    A New Solution To Help Seniors Relocate

    As Americans age – and families try to cope – the new field of senior move managers helps seniors relocate to safer homes with the least possible stress.
  10. Investing Basics

    ISDA Master Agreement

    The ISDA Master Agreement is a document outlining the terms of an over-the-counter derivatives transaction between two parties. This document serves as a standard agreement in these transactions ...

You May Also Like

Hot Definitions
  1. Social Security

    A United States federal program of social insurance and benefits developed in 1935. The Social Security program's benefits ...
  2. American Dream

    The belief that anyone, regardless of where they were born or what class they were born into, can attain their own version ...
  3. Multicurrency Note Facility

    A credit facility that finances short- to medium-term Euro notes. Multicurrency note facilities are denominated in many currencies. ...
  4. National Currency

    The currency or legal tender issued by a nation's central bank or monetary authority. The national currency of a nation is ...
  5. Treasury Yield

    The return on investment, expressed as a percentage, on the debt obligations of the U.S. government. Treasuries are considered ...
  6. Bund

    A bond issued by Germany's federal government, or the German word for "bond." Bunds are the German equivalent of U.S. Treasury ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!