ABA Family Legal Guide

Automobiles

Consumer Protections

Warranties and the Uniform Commercial Code

What creates an implied warranty of merchantability?

An implied warranty of merchantability applies automatically if the seller is a merchant, such as a car dealer. The implied warranty of merchantability is a representation that the car will do what it is supposed to do. The quality guaranty means that the car should possess that level of quality needed to pass without objection in the trade; and the fitness guaranty means that the car should serve the buyer's ordinary purposes.

Most people agree that the implied warranty of merchantability is part of a new car purchase. All states impose implied warranties for used cars bought from dealers, unless the warranty is disclaimed specifically, in writing, by words like "as is" or "with all faults."

Note that implied warranties may have only limited duration.