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An example of an implied warranty is an assumption that the product that you buy will work. For example, if you purchase a washing machine, the assumption is that the washing machine will work and wash your clothes. If you buy a sandwich from a deli, the implied warranty is that the sandwich is edible.
For example, if a farmer goes to a farm supply store, and tells the salesperson they need a plow for the rocky soil of their farm, and the salesperson directs them to a particular plow, there may be an implied warranty that the plow in question is fit for use in rocky soil.
In every sale between a merchant and a consumer, there exists an implied warranty of merchantability. This means that the goods bought will be fit for their ordinary use. For example, if you buy a golf club from a golf shop, there is an implied warranty in the sale that the golf club will perform as it was designed to.
The Magnuson-Moss Warranty Act is the federal law that governs consumer product warranties. Passed by Congress in 1975, the Act requires warrantors of consumer products to provide consumers with detailed information about warranty coverage.
Implied warranty ? merchantability ? usage of trade. ? (1) Unless excluded or modified (section 400.2-316), a warranty that the goods shall be merchantable is implied in a contract for their sale if the seller is a merchant with respect to goods of that kind.
There are many types of implied warranties including an implied warranty of merchantability, an implied warranty of fitness, an implied warranty of habitability (for a lease), and an implied warranty of marketability (for the sale of real property, also known as a marketable title).
For example, if you buy a golf club from a golf shop, there is an implied warranty in the sale that the golf club will perform as it was designed to. If the first time you swing the club, the head falls off, then the implied warranty of merchantability has been breached.
Some examples may include replacing a product such as a mobile phone if it does not the way it is advertised. A consumer may also receive free repair services where a product has been damaged during use. Some companies offer a money-back guarantee if consumers are not satisfied with a product.