Implied Warranties Of Merchantability And Fitness

The law in California provides two types of warranties: express and implied.

Implied warranties take place automatically when you purchase a car. So, a dealer does not specifically have to make a written agreement. However, dealers in most states can use the words “as is” or “with all faults” in a written notice to buyers to eliminate implied warranties.

There are two kinds of implied warranties:

  • implied warranty of merchantability
  • implied warranty of fitness.

Implied warranty of merchantability unspoken or unwritten guarantee that a vehicle will function as expected, given its age and condition. In other words, the car is in average condition for the price paid for it and fits the safety demands. This works in the way that the dealer is liable for what he sells and therefore, he wants his product to be in the right condition.

A warranty of fitness takes place when a dealer advises you buy a vehicle for a particular purpose. For example, a dealer who suggests you buy a specific vehicle for hauling a trailer in effect is promising that the vehicle will be suitable for that purpose. The warranty of fitness will take place under the following circumstances:

  1. the dealer must have reason to know your specific purpose of the vehicle
  2. the dealer must have reason to know of your reliance on his skill and knowledge
  3. you must rely on the dealer’s expertise.

But if, for instance, you specify a certain brand of a vehicle, or you have a greater expertise and knowledge, or if you provide specifications such as blueprint, design plan with detailed information about types of materials used, you are not eligible for warranty of fitness.