Key Takeaways

  • Warranties provide assurance about the quality, functionality, and longevity of a product or service, and can be either express (written or verbal) or implied by law.
  • Common warranty examples include express, implied, lifetime, and extended warranties, but there are also special forms such as full vs. limited warranties and statutory warranties under the Uniform Commercial Code (UCC).
  • A well-drafted warranty should clearly state the coverage period, scope of coverage, claim procedures, exclusions, and compliance with applicable laws.
  • Warranty clauses in contracts often define the seller’s obligations, outline remedies for defects, and limit liability in certain circumstances.
  • Real-world warranty examples range from consumer electronics and appliances to real estate transactions, vehicles, and professional services.

Warranty Examples

There are many warranty examples, and they may be used or needed in any number of situations. Many times the warranty is implied rather than stated either in writing or verbally.

At the most basic level, a warranty is an assumption or guarantee that an item that is being purchased will be able to used, as it intended, for a reasonable length of time. Additionally, warranties are used in real estate, insurance policies. There are also express warranties and implied warranties. Some warranties may come with disclaimers.

Real-World Warranty Examples

Warranties apply across a wide variety of industries and products, offering buyers reassurance that the seller stands behind their goods or services. Common real-world warranty examples include:

  • Consumer Electronics: A smartphone manufacturer may offer a one-year express warranty covering defects in materials and workmanship, with repair or replacement as the remedy.
  • Appliances: A refrigerator might come with a limited three-year warranty on parts and a one-year warranty on labor.
  • Automobiles: Vehicle warranties often include multiple coverages, such as a five-year/60,000-mile powertrain warranty and corrosion protection for a longer period.
  • Real Estate: Newly constructed homes may include builder warranties covering structural defects for up to 10 years.
  • Professional Services: Certain service providers, such as contractors or software developers, may guarantee their work for a defined period after completion, promising to fix defects at no cost.

These examples show how warranties vary in scope, length, and remedies, making it important for both buyers and sellers to understand the terms before agreeing to them.

Different Types of Warranties

There are four different types of warranties:

  • Express Warranty: an express warranty guarantees that the seller will repair (or, even replace) a product should it become defective within a certain period of time. We have at least heard (if not used it, ourselves) the phrase, “well, it’s okay…they will replace it because it is still under warranty.” These are generally provided by the manufacturer, not necessarily the seller. (For example, your coffeemaker will be repaired by Bodum, not Macy’s.)
  • Implied Warranty: this is the most common type of warranty and does not necessitate any type of written understanding. An implied warranty is just that: implied. It is the assumption that whatever you are purchasing will be able to be used or consumed in the manner intended. Additionally, an implied warranty assumes that (unless stated otherwise) that you are purchasing merchandise that is in new condition. An example of an implied warranty is the assumption that the new sweater you are buying from a department store is free of any holes, stains, or other damage.
  • Lifetime Warranty: whereas an express warranty has a time limit as to how long it is valid, a lifetime warranty has no such expiration date. Generally, however, the lifetime warranty is good for the lifetime of the buyer, not the lifetime of the product. So, if your 80-year-old grandmother buys a new stove and bequeaths it to you upon her death, the lifetime warranty is no longer valid. Additionally, the lifetime warranty is only valid provided that the item is being used for its intended purpose. So, please do not use that new widescreen television as a dance platform!
  • Extended Warranty: an extended warranty falls somewhere between an express warranty and a lifetime warranty. After the expiration of the express warranty, an extended warranty may still be in effect for certain parts or components of an item. Much as with an express warranty, however, there is a time limit applied to extended warranties. Additionally, as with all warranties, an extended warranty assumes that the buyer is using the item as the manufacturer or seller intended. Using something for other purposes may nullify a warranty.

Additional Warranty Classifications

Beyond the four core types of warranties, warranties can also be classified in other ways:

  • Full Warranty: Covers the entire product without cost to the buyer for repairs or replacements, often required to meet certain legal standards under the Magnuson-Moss Warranty Act.
  • Limited Warranty: Restricts coverage to certain parts, types of defects, or time periods, or limits the available remedies.
  • Statutory Warranties: Imposed by law, such as those under the Uniform Commercial Code (UCC) or state consumer protection statutes, which require products to be fit for their intended purpose.
  • Service Contracts (Warranty Add-Ons): Often sold separately, these agreements extend coverage or provide additional benefits beyond the standard warranty.

These classifications help set buyer expectations and define the extent of the seller’s legal obligations.

What Should Be Included?

Perhaps you are a manufacturer or retailer, and you want to offer your customers warranties on your products. What should you include in your warranty to ensure that your customers will be satisfied, while you aren’t making repairs or replacements for which you are not prepared?

  • What time period does the warranty cover? Are you offering a lifetime warranty or an express warranty? You will want to be clear on this, so a customer does not come to you 20 years later, wanting their blender replaced, if that is not your intent.
  • How does the customer obtain their warranty service? Do they need to bring the blender to the retailer from which they purchased it or do they mail it to you, directly? What information (receipts, description of defects) do they need to provide? Is there a customer service number to call, first?
  • Exactly what services are you willing to provide under the parameters of the warranty? Are you going to fully replace the blender, outright or are you going to repair it? If repairing the item is your intent, are there certain components of the blender that are not under warranty?
  • Are there certain problems or issues that your warranty will not cover? For example, if the customer drops the pitcher and it breaks, will you replace it?
  • State laws. Different states have different laws and regulations regarding warranties. As such, it is important that you know what your state’s laws are and how that may affect your warranties.

Best Practices for Drafting a Warranty Clause

In a contractual context, a warranty clause should be precise to avoid disputes and limit unintended liabilities. Best practices include:

  1. Define Scope Clearly: Specify whether the warranty covers defects in materials, workmanship, performance, or all of the above.
  2. Set the Duration: State the exact coverage period (e.g., “12 months from the date of purchase” or “lifetime of the original purchaser”).
  3. Outline Claim Procedures: Explain how the buyer should notify the seller of a defect, provide proof of purchase, and ship or return the item.
  4. Limitations and Exclusions: List issues not covered, such as normal wear and tear, misuse, or unauthorized modifications.
  5. Remedies Available: Clarify whether the seller will repair, replace, or refund, and under what circumstances.
  6. Disclaimers and Legal Compliance: Include language to comply with state and federal laws while limiting implied warranties to the extent allowed.

Well-crafted warranty clauses protect both parties by reducing uncertainty and clarifying remedies in the event of a defect.

Frequently Asked Questions

1. What is the difference between an express and implied warranty?

An express warranty is explicitly stated in writing or verbally by the seller, while an implied warranty arises automatically under law, ensuring products meet basic quality and usability standards.

2. What is an example of a limited warranty?

A limited warranty may only cover specific parts of a product, such as a car’s powertrain, while excluding other components or limiting the coverage period.

3. Can a seller disclaim all warranties?

In many cases, sellers can disclaim certain implied warranties with clear, conspicuous language, but consumer protection laws may still impose minimum warranty obligations.

4. How long do most warranties last?

Warranties can range from 30 days to several years, depending on the product and type of warranty. Lifetime warranties usually mean the lifetime of the original purchaser, not the product itself.

5. Are service contracts the same as warranties?

No. Service contracts are optional agreements purchased separately to provide extended coverage or additional services beyond the original warranty.

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