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 Illinois, the concept of implied warranties in the sale of goods is governed by the state's version of the Uniform Commercial Code (UCC), specifically under 810 ILCS 5/2-314 and 5/2-315. The implied warranty of merchantability ensures that goods sold by a merchant are fit for the general purpose for which they are intended, are of at least average, passable quality, and are adequately contained, packaged, and labeled. This warranty automatically applies unless it is specifically disclaimed in a clear and conspicuous manner, such as with an 'as is' or 'with all faults' statement. However, Illinois law may impose restrictions on the ability to disclaim this warranty, particularly for new goods. The implied warranty of fitness for a particular purpose arises when a seller knows or has reason to know of a particular purpose for which the goods are required and that the buyer is relying on the seller's skill or judgment to select suitable goods; this warranty ensures that the goods will serve this specific purpose. Additionally, Illinois recognizes an implied warranty against infringement of intellectual property, which protects buyers if the goods infringe on someone else's intellectual property rights. Sellers are expected to indemnify buyers against any claims of infringement. These warranties are designed to protect consumers and ensure fairness in transactions involving goods.