Warranties: The Legal Framework
Most warranty law for the sale of goods comes from Article 2 of the Uniform Commercial Code (UCC), which every state except Louisiana has adopted in some form. Federal law adds the Magnuson-Moss Warranty Act for written warranties on consumer products.
Express Warranties
An express warranty is created when a seller makes a promise or factual statement about the goods that becomes part of the basis of the bargain (UCC § 2-313). It can come from:
- A written warranty card or contract
- Statements in advertising, packaging, or labels (for example, "waterproof to 50 meters")
- A description of the product
- A sample or model shown to the buyer
The seller does not have to use the words "warranty" or "guarantee." General sales talk ("the best TV on the market") usually is not a warranty, but specific factual claims are.
Implied Warranties
Implied warranties exist automatically unless they are properly disclaimed:
| Implied warranty | What it promises | Applies when |
|---|---|---|
| Merchantability (UCC § 2-314) | The product is fit for its ordinary purpose and of fair average quality | The seller is a merchant who regularly sells that kind of product |
| Fitness for a particular purpose (UCC § 2-315) | The product will meet a specific need the buyer described | The seller knew the buyer's purpose and the buyer relied on the seller's expertise |
For example, a toaster that will not toast breaks the warranty of merchantability. If you tell a hardware store employee you need paint for a bathroom ceiling and rely on their recommendation, the warranty of fitness may apply.
"As Is" Sales
Sellers can usually disclaim implied warranties by clearly selling a product "as is" or "with all faults." Used car dealers must post the FTC Buyers Guide on vehicles stating whether the car is sold as is or with a warranty. Some states do not allow "as is" sales of certain consumer goods.
The Magnuson-Moss Warranty Act
The Magnuson-Moss Warranty Act (15 U.S.C. § 2301 and following) does not require anyone to offer a written warranty. But if a company does offer one on a consumer product, the law requires that:
- The warranty be written in clear, easy-to-understand language
- It be labeled either a "full" or a "limited" warranty (for products costing more than $10)
- Warranty terms be available to read before you buy
- The company not disclaim implied warranties completely when it gives a written warranty; it can only limit their duration to the length of the written warranty
Full vs. Limited Warranty
| Full warranty | Limited warranty |
|---|---|
| Repair or replacement within a reasonable time, free of charge | Can include charges such as labor or shipping |
| Covers anyone who owns the product during the warranty period | May cover only the first buyer |
| Refund or replacement if the product cannot be fixed after reasonable attempts | Remedies limited to what the warranty states |
| No limit on the duration of implied warranties | Implied warranties can be limited to the written warranty period |
The Act also prohibits "tie-in" conditions — a company generally cannot void a warranty just because you used a third-party part or service, unless it provides that part free or gets an FTC waiver.
What Is a "Guarantee"?
"Guarantee" is not a separate legal category for consumer products. Businesses often use it in phrases like:
- "Money-back guarantee" or "satisfaction guaranteed" — a promise to refund if you are unhappy, enforceable according to its terms
- "Lifetime guarantee" — often a type of written warranty, which must follow Magnuson-Moss rules
- "Price match guarantee" — a store policy with its own conditions
If a guarantee is a written promise about the product's quality or a promise to repair or replace it, it is generally treated as a warranty. Otherwise, it is enforced as a contract term or store policy, and false or misleading guarantees can violate state consumer protection laws and the FTC Act.
Service Contracts Are Different
An extended warranty sold for an extra price is usually a service contract, not a warranty. It is governed by its own terms and state insurance or service contract laws.
How to Make a Warranty Claim
- Find the warranty terms and your proof of purchase.
- Contact the seller or manufacturer within the warranty period and describe the defect.
- Follow the required claim process and keep records of all communications and repairs.
- If the company refuses, send a written demand. You can file complaints with your state attorney general and the FTC.
- Consider small claims court or a lawsuit. Magnuson-Moss allows consumers to recover attorney's fees for successful warranty claims.
