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 Oregon, 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 guarantees that a product is suitable for a specific purpose when a seller knows that the buyer is relying on the seller's expertise to select suitable goods. Oregon law allows for the disclaimer of the implied warranty of merchantability in certain circumstances, such as when goods are sold 'as is' or with 'all faults,' provided that the disclaimer is made clearly and conspicuously. However, disclaiming this warranty may not be as straightforward for new goods. Additionally, Oregon's version of the Uniform Commercial Code (UCC) may include provisions related to the implied warranty against infringement of intellectual property, which protects buyers against claims that the goods infringe on someone else's intellectual property rights. These warranty laws can be found in Oregon's statutes, particularly in the sections that adopt and modify Article 2 of the UCC.