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 New Jersey, the regulation of implied warranties in the sale of goods is governed by the state's version of the Uniform Commercial Code (UCC), specifically NJSA 12A:2-314 to 12A:2-316. 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 conform to the promises or affirmations of fact made on the container or label. A seller can disclaim this warranty if the disclaimer is in writing, conspicuous, and mentions merchantability. The implied warranty of fitness for a particular purpose applies when a buyer relies on the seller's skill or judgment to select suitable goods, and the seller knows about this reliance. This warranty can also be disclaimed with a conspicuous written disclaimer. Regarding the implied warranty against infringement, a merchant implicitly warrants that the goods shall be delivered free of any rightful claim of a third party by way of infringement or the like, unless otherwise provided in the contract. New Jersey law allows for the disclaimer of this warranty under certain conditions. It is important for buyers and sellers in New Jersey to understand these implied warranties and the circumstances under which they may be disclaimed.