Also known as: implied warranty · implied warranty of merchantability · implied warranty of fitness
Written by attorneys · grounded in primary & secondary sources — see below
2 senses
An obligation imposed by law in sales of goods requiring that the goods meet specified standards of quality or fitness. The obligation arises automatically from the nature of the transaction without any express statement by the parties.
An obligation imposed by law in certain property transactions requiring that leased or sold premises meet specified standards of habitability or fitness. The obligation arises automatically from the nature of the transaction without any express statement by the parties.
An obligation imposed by law in sales of goods requiring that the goods meet specified standards of quality or fitness. The obligation arises automatically from the nature of the transaction without any express statement by the parties.
Select any source to read its text and confirm it supports the definition.
An obligation imposed by law in certain property transactions requiring that leased or sold premises meet specified standards of habitability or fitness. The obligation arises automatically from the nature of the transaction without any express statement by the parties.
Select any source to read its text and confirm it supports the definition.
Each sense below has its own examples, sources, and questions.
Idris Ives purchased used equipment from Interlink Communications under a contract stating the goods were sold as is. The equipment later proved defective in ordinary use. The as is language called attention to the exclusion of warranties. No implied warranty applied to the defects.
Igor Ito inspected a vehicle offered by Indigo Textiles before purchase but overlooked visible rust that an examination should have revealed. The vehicle later failed due to that rust. Because Igor Ito had examined the goods as fully as desired, no implied warranty covered the defect.
A seller may exclude all implied warranties with language such as as is or with all faults that calls the buyer's attention to the exclusion. Specific mention of merchantability is required to disclaim that warranty, and the disclaimer must be conspicuous if in writing.
Supporting sources
No implied warranty arises for defects that an examination ought to have revealed when the buyer examined the goods as fully as desired or refused to examine them.
Supporting sources
Isabelle Inman leased an apartment from Indigo Textiles. After taking possession, a loose railing on the common stairway caused her guest Igor Ito to fall and suffer injuries. The railing had been in disrepair since before the lease began. Indigo Textiles had not repaired it despite knowing of the hazard. The condition violated the implied warranty of habitability, so Indigo Textiles faced liability for the physical harm.
Iain Irons bought a newly built home from Infinity Bank three years after the original sale. The home had latent roof defects that made it unsuitable for habitation. Iain Irons sued the original builder. Courts in the jurisdiction limit enforcement of the implied warranty to the first purchaser in privity, so the claim failed.
Isaac Irving leased property from Innovate Pharmaceuticals. A dangerous condition on the premises harmed a pedestrian outside the property. The landlord had failed to repair despite notice. The condition violated the implied warranty of habitability, exposing the landlord to liability for harm to persons outside the leased property.
Ismael Ibrahim purchased a home from a prior owner two years after the builder sold it. Structural defects from the original construction rendered the home unfit for habitation. Ismael Ibrahim sued the builder directly. The jurisdiction often limits the implied warranty of fitness to buyers in privity, barring the remote purchaser's claim.
Yes. A landlord may be liable for physical harm to outsiders if a dangerous condition violates the implied warranty of habitability and the landlord failed to exercise reasonable care to repair it.
Supporting sources
Jurisdictions are split. Some restrict enforcement to the first purchaser in privity with the builder, while others permit subsequent purchasers to assert the warranty when latent defects impair habitability.
Supporting sources
…negligence counts were dismissed by the court and the cause was submitted to the jury for determination solely on the issues of implied warranty of merchantability. Verdicts were returned against both defendants and in favor of the plaintiffs. Defendants appealed and plaintiffs cross-appealed from the dismissal of their negligence claim. The matter…