What is 'Implied Warranty'

Implied warranty is a legal term for the assurances – written or oral – that a product is fit for the purpose intended and is merchantable, i.e., conforms to an ordinary buyer’s expectations. The warranty of merchantability is implied, unless expressly disclaimed by name, or the sale is identified with the phrase "as is" or "with all faults."

BREAKING DOWN 'Implied Warranty'

To protect consumers, products and services come with an implied warranty, whether or not there’s a written warranty. This guarantee is in addition to any express warranty provided at the time of sale, and includes the implied warranty of workmanlike quality for services, an implied warranty of habitability for a home and the warranty of title that gives the seller the right to sell the goods.

Example of Implied Warranty

For example, fruit that looks fresh but has hidden defects would violate the implied warranty of merchantability. All the food in a grocery store has an implied warranty as consumers assume it is fresh and edible – which is why they get a refund if it is not.

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