Warranties and Consumer Remedies

Summary

Express and implied warranties in consumer transactions and available remedies for breach.

Overview

Warranties are promises about the quality or characteristics of goods sold to consumers. The Uniform Commercial Code (UCC) Article 2 governs warranties in sales of goods. Express warranties are created by affirmations of fact, descriptions, or samples. Implied warranties include the warranty of merchantability (goods must be fit for ordinary purposes) and the warranty of fitness for a particular purpose (when the seller knows the buyer’s specific needs).

Remedies

Consumers may recover damages for breach of warranty, including the difference between the value of goods as accepted and their value if conforming. Many states have adopted lemon laws providing additional remedies for defective vehicles. The Magnuson-Moss Warranty Act (1975) requires written warranties for consumer products over $15 and allows class actions for warranty violations. Consumers may also revoke acceptance of nonconforming goods and recover the purchase price.