Contracts
Implied Warranty
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.