Implied Warranty
What does "Implied Warranty" mean in law?
Implied warranties arise by operation of law rather than by express agreement. The implied warranty of merchantability (UCC Section 2-314) guarantees that goods are fit for their ordinary purpose. The implied warranty of fitness for a particular purpose (UCC Section 2-315) applies when the seller knows the buyer's specific need and the buyer relies on the seller's expertise. These warranties can be disclaimed, but conspicuous language is required.
Definition
Implied warranties arise by operation of law rather than by express agreement. The implied warranty of merchantability (UCC Section 2-314) guarantees that goods are fit for their ordinary purpose. The implied warranty of fitness for a particular purpose (UCC Section 2-315) applies when the seller knows the buyer's specific need and the buyer relies on the seller's expertise. These warranties can be disclaimed, but conspicuous language is required.
Example
A buyer purchases a toaster at a retail store. Even without any express promise, the implied warranty of merchantability guarantees it will function as a toaster.