Understanding Warranty Laws in the U.S.
Quick Answer
Warranties are legal promises about a product's quality and performance. Understanding the difference between what you are legally entitled to versus what is offered voluntarily by a seller helps you know your rights when something goes wrong.
Types of Warranties
Implied Warranties
Implied warranties exist automatically under state law without anyone stating them. They are not written in a contract. They are legal protections that apply to virtually every consumer product sale.
Implied warranty of merchantability: The product must work for its ordinary intended purpose. A toaster must toast bread. A jacket must be wearable. A laptop must function as a computer. If a product does not do what it is made to do, this implied warranty is breached.
Implied warranty of fitness for a particular purpose: This applies when a seller recommends a product for a specific use you have described. If a hardware store employee recommends a paint for outdoor use and it is not suitable for outdoor use, the seller may have breached this implied warranty.
Sellers can disclaim implied warranties in writing using phrases like "sold as is" or "with all faults," but these disclaimers are not permitted in all states and are not valid for new consumer products in many jurisdictions.
Express Warranties
An express warranty is an explicit promise made by the seller or manufacturer. It can be written or verbal. Common examples include:
- "This blender comes with a two-year manufacturer's warranty"
- A written warranty card included with the product
- A salesperson's statement that the product will perform a specific function
The Magnuson-Moss Warranty Act governs written warranties on consumer products. Under this act:
- Written warranties must be available to consumers before purchase
- Warranties on products costing more than $15 must be labeled as either "full" or "limited"
- A full warranty means the company will repair or replace a defective product within a reasonable time at no charge during the warranty period
- A limited warranty has conditions or limitations and must clearly disclose them
Full vs. Limited Warranties
| Feature | Full Warranty | Limited Warranty |
|---|---|---|
| Repair or replacement | Free, within reasonable time | May have conditions or costs |
| Consequential damages | Cannot be excluded | Can be excluded |
| Implied warranty duration | Cannot be limited | Can be limited to duration of express warranty |
| Who is covered | All owners during warranty period | May be limited to original purchaser |
A product can carry both a full warranty on some components and a limited warranty on others. Read the warranty documentation to understand exactly what is covered.
What Warranties Do Not Cover
Nearly all warranties exclude:
- Damage from misuse, accidents, or unauthorized modifications
- Normal wear and tear
- Cosmetic damage that does not affect function
- Damage from improper installation by the consumer
- Commercial or business use (for products warranted for personal use only)
Lemon Laws for Vehicles
State lemon laws provide specific protections for consumers who purchase defective new vehicles. While specifics vary by state, most lemon laws share common elements:
- The defect must substantially impair the vehicle's use, value, or safety
- The manufacturer must be given a reasonable number of attempts to repair the defect (often three or four attempts for the same defect, or the vehicle being out of service for 30 or more cumulative days)
- If the manufacturer cannot fix it, you are entitled to a replacement vehicle or a refund of the purchase price
Most state lemon laws cover new vehicles. Some states extend coverage to used vehicles or leased vehicles. Check your state attorney general's website for your state's specific lemon law provisions.
Extended Warranties vs. Manufacturer Warranties
An extended warranty (also called a service contract) is a paid add-on that extends coverage beyond the manufacturer's warranty period. It is not the same as the original warranty.
The original manufacturer's warranty is included in the purchase price and is a legal commitment. An extended warranty is an optional product you pay extra for. Whether it is worth purchasing depends on the product, its reliability history, and the cost of the plan relative to the product's value.