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 period after purchase. 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 a replacement for a faulty product, component, or service within a specified time period.
- Under the Magnuson-Moss Warranty Act, a company that provides a written express warranty must adhere to federal guidelines.
- Details about a product or service outlined in an advertisement can set a precedent for an express warranty.
- Without communicated guarantees, an implied warranty may come into force.
How an Express Warranty Works
A warranty assures an item will live up to the seller’s promises. Under the Magnuson-Moss Warranty Act, passed by Congress in 1975, a company that provides a written express warranty is subject to federal guidelines and must comply with the Act.1 The Act protects consumers if a company violates its written warranty.
An express warranty can be worded in many different ways. It may say something like: “We guarantee all furniture against defects in construction for one year. When a structural defect is brought to our attention, we will repair or replace it.”
Most express warranties come from the manufacturer or are included in the seller’s contract. They can also be created by a simple statement on an advertisement or a sign in a store.
Special Considerations
Details about a product or service outlined in an advertisement can set a precedent for an express warranty. Advertising claims about a product’s quality, functionality, lifespan, and efficacy can constitute an express warranty.
Suppose the product does not meet the standards outlined in the advertising or suffers a breakdown within a set timeframe. In that case, the customer may be entitled to free repair service or, when possible, a full replacement.
Not every claim a seller makes is enshrined in warranty law, though. Exaggerated statements that sometimes appear in advertising do not necessarily constitute express warranties.
For example, suppose an automaker claims that its car is “the best in the world,” after several road trips, the purchaser disagrees with this statement. In that case, they are not necessarily eligible for a refund unless specifically stated.
Express Warranty Examples
E-Commerce
E-commerce companies typically include express warranties on the goods they sell partly because of how online shopping is conducted. The customer cannot try on or physically examine merchandise they are about to purchase.
How the product functions and looks when received can dramatically differ from what the customer envisioned while browsing online. Including an express warranty gives them some sense of surety that issues with the purchase will be rectified in some manner.
For example, if a consumer buys a business jacket online, but when it arrives the item is the wrong size, wrong color, or is missing buttons, an express warranty might entitle the consumer to a refund or replacement. In such cases, the online seller is usually responsible for footing the bill for additional shipping charges.
Auto Sales
Auto dealers tend to advertise express warranty terms for repairs on their vehicles. This can include stipulations on mileage and length of ownership that limit the extent of that coverage. The express warranty would no longer be applicable after the vehicle is owned for a certain time or driven beyond the mileage limit.
Express Warranty vs. Implied Warranty
Express warranties are promises a seller makes to a buyer, either orally or in writing. Without communicated guarantees, an implied warranty may come into force.
Implied warranties are unwritten guarantees that a product or service should work as expected. For example, if you buy a set of headphones, you would expect them to function when you first use them—unless you were told otherwise when you agreed to purchase them.
The Uniform Commercial Code (UCC) refers to an “implied warranty of merchantability,” stating that any goods sold in a transaction must be fit for the ordinary purposes for which it is typically used.2
Correction—March 8, 2022: A previous version of this article incorrectly stated that the Magnuson-Moss Warranty Act required companies to issue warranties. The law does not mandate warranties but sets federal rules for when warranties are offered.
ARTICLE SOURCES
- Federal Trade Commission. “Businessperson’s Guide to Federal Warranty Law.”
- Cornell Law School. “Implied Warranty of Merchantability.”
