Also known as: implied warranties
Written by attorneys · grounded in primary & secondary sources — see below
A warranty that the law imposes in specified transactions to ensure that goods or premises meet standards of quality, fitness, or habitability. The warranty arises automatically upon the transaction unless properly excluded and protects the buyer or tenant from defects that violate those standards.
Landlord L leased a commercial exhibition hall to tenant T for boxing matches while retaining control of the lighting. A spectator fell through an opening created by a pre-existing dangerous condition that L failed to repair. The condition violated the implied warranty of habitability, exposing L to liability for the spectator's physical harm.
Builder East Wind sold a newly constructed solar-equipped home to Corey under a standard agreement. Corey later sold the home to Logan, who discovered latent roof defects causing unsafe conditions. Logan sued East Wind for breach of the implied warranty of workmanlike construction despite lacking privity with the builder.
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Seller offered used equipment to buyer with language stating the goods were sold as is and with all faults. The buyer accepted without objection. The disclaimer language excluded all implied warranties because it called the buyer's attention to the absence of any warranty protection.
Landlord transferred possession of property containing a dangerous condition that later caused harm to a person outside the leased premises. The landlord had failed to exercise reasonable care to repair the condition in violation of the implied warranty of habitability. Liability attached to the landlord for the resulting physical harm.
Builder sold a newly constructed home to an initial purchaser who later resold it to a subsequent buyer. The subsequent buyer discovered latent defects impairing habitability and sued the builder for breach of the implied warranty of fitness and quality. Courts divided on whether the warranty extended without privity to the remote purchaser.
Buyer examined the goods before purchase as fully as desired and declined further inspection. Defects later appeared that the examination should have revealed under the circumstances. No implied warranty arose with respect to those defects.
The warranty typically protects residential tenants but may extend to commercial tenants when a dangerous condition violates the warranty or a statutory duty and the landlord fails to repair it after notice.
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Courts split on the issue. Some restrict enforcement to parties in privity with the builder while others permit remote purchasers to assert the warranty when latent defects impair habitability.
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An as-is clause excludes all implied warranties when the language calls the buyer's attention to the exclusion and makes plain that no warranty exists, unless circumstances indicate otherwise.
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No implied warranty exists for defects that the examination ought to have revealed when the buyer examined the goods as fully as desired or refused to examine them.
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…A modern urban tenant's leasehold often includes not only contractual, but also statutory, rights, including the rights to an implied warranty of habitability, rent control, and such services as the landlord is obliged by statute to provide. Cf. n. 7, supra. [^maj-32]: Happily, the Court leaves open the question whether § 828…