What is an Express Warranty?
An express warranty is an agreement by a seller to provide repairs or a replacement for a faulty product, component, or service within a specified time period after it was purchased. Buyers rely on these promises or guarantees, and sometimes purchase items because of them.
Key Takeaways
- An express warranty is an agreement by a seller to provide repairs or replacement for a faulty product, component, or service within a specified time period.
- Under the Magnuson-Moss Warranty Act, businesses offering written express warranties must follow federal guidelines.
- Product representations in advertisements can establish the framework for an express warranty.
- Without expressly communicated guarantees, implied warranties may still offer consumer protection.
Understanding How an Express Warranty Works
A warranty is an assurance that a product will meet the promises made by the seller. According to the Magnuson-Moss Warranty Act, passed by Congress in 1975, companies that provide a written express warranty are subject to federal regulations and must comply with the Act. This legislation offers consumer protection if a company does not fulfill its written warranty.
An express warranty can be articulated in various ways. For instance, a warranty might state: “We guarantee all furniture against defects in construction for one year. If a structural defect is identified, we will repair or replace it.”
Most express warranties are provided by the manufacturer or outlined in the seller’s contract. They can also be constituted by a declaration in an advertisement or a store sign.
Special Considerations
Details about a product or service highlighted in advertisements can set the foundation for an express warranty. Claims about the quality, functionality, lifespan, and efficacy of a product can establish an express warranty.
If a product fails to meet the advertised standards or experiences a breakdown within a definite timeframe, the customer may be entitled to free repairs or possibly a full replacement.
Not all claims made by sellers are covered by warranty law. Exaggerated marketing statements do not generally constitute express warranties.
For example, if an automaker claims its car is “the best in the world” but the buyer disagrees after several road trips, this statement does not typically qualify for a refund unless explicitly included in a warranty.
Inspirational Express Warranty Examples
E-Commerce
E-commerce companies often include express warranties on the products they sell due to the nature of online shopping. Buyers cannot physically inspect or try on merchandise before purchasing.
When a product received differs significantly from what the customer envisioned, the express warranty provides confidence that any issues will be resolved.
For example, if a consumer orders a business jacket online, but receives the wrong size, color, or finds missing buttons, an express warranty might guarantee a refund or replacement and cover additional shipping charges.
Auto Sales
Auto dealers frequently promote express warranty terms for vehicle repairs. These contracts usually specify limits on mileage and ownership duration for the provided coverage. Once these limits are surpassed, the express warranty may no longer apply.
Express Warranty vs. Implied Warranty
Express warranties are particular promises made by a seller to a buyer, communicated either orally or in writing. Without specific guarantees, implied warranties may come into effect.
Implied warranties are unspoken guarantees that products or services should work as expected. For instance, if you purchase a set of headphones, you would naturally expect them to function without issue, unless otherwise stated.
The Uniform Commercial Code (UCC) mentions an “implied warranty of merchantability,” suggesting that any goods sold should be suitable for their typical purpose.
Update - March 8, 2022: A previous version of this guide incorrectly stated that the Magnuson-Moss Warranty Act required companies to issue warranties. In reality, the law does not mandate warranties but rather establishes federal rules for when warranties are provided.
Related Terms: implied warranty, Magnuson-Moss Warranty Act, consumer protection, Uniform Commercial Code, manufacturer warranty.
References
- Federal Trade Commission. “Businessperson’s Guide to Federal Warranty Law”.
- Cornell Law School. “Implied Warranty of Merchantability”.
