Many states have laws that provide for implied warranties made by sellers (known as merchants) in sales of goods. These implied warranties are designed to protect buyers of goods whether or not there is a written warranty for the goods, and whether the goods are new or used.

Implied Warranty of Merchantability

Implied warranties generally provide assurances or promises that the goods are fit for their intended purpose and that the goods are merchantable—meaning they conform to or meet an ordinary buyer’s expectations. This implied warranty is known as the implied warranty of merchantability.

In some states this implied warranty of merchantability may be disclaimed by a seller or merchant when the goods are sold with the disclaimer that they are sold “as is” or “with all faults.” But in some states this warranty cannot be disclaimed—at least not in the sale of new goods.

Implied Warranty of Fitness

The implied warranty of fitness—also known as the implied warranty of fitness for a particular purpose or the implied warranty of fitness for a specific purpose—means a product is guaranteed to be fit for a specific purpose or use, as stated or recommended by the merchant’s salesperson or other representative.

Implied Warranty Against Infringement of Intellectual Property

Some state laws include an implied warranty against infringement of a third-party’s intellectual property. This means that if a merchant sells a product that infringes another person or entity’s intellectual property (patent, copyright, or trademark), they seller that sold the infringing goods must indemnify or protect the buyer against any infringement claim by the owner of the intellectual property.

Where to Find Warranty Laws

Warranties in the sale of goods are usually located in a state’s statutes—often in the state’s adopted version of Article 2 of the Uniform Commercial Code (UCC).

In Colorado, as in many states, the law provides for implied warranties in the sale of goods, which include the implied warranty of merchantability and the implied warranty of fitness. The implied warranty of merchantability ensures that goods sold by a merchant are fit for the general purpose for which they are intended and meet the ordinary buyer's expectations. The implied warranty of fitness for a particular purpose guarantees that a product is suitable for a specific use, as represented by the seller. Colorado has adopted the Uniform Commercial Code (UCC), which is where these warranties are typically found in state statutes. Under Colorado law, these implied warranties can generally be disclaimed by the seller through specific language, such as 'as is' or 'with all faults,' particularly in the sale of used goods. However, there are limitations on the ability to disclaim these warranties, especially for new goods. Additionally, there is an implied warranty against infringement of intellectual property, which holds the seller responsible for indemnifying the buyer if the goods infringe on someone else's intellectual property rights. It's important for buyers and sellers in Colorado to understand these warranties and the conditions under which they may be disclaimed.