Essay on Implied Warranties

According to the law, implied warranty is not something explicitly promised by a seller, but rather implied in the circumstances of a sale. For example, when a person is selling reading glasses, we automatically can assume that he understands something in what he/she is doing and can rely on his/her advise. Each time when we are buying we are assuming that the products are of proper quality and correspond to our expectations of such products. This refers to product’s merchantability. For example, when we buy vitamins, we expect that they will not harm our health, but on the contrary, will provide our body with the important elements, will be properly packaged and have necessary information about usage. We rely on the knowledge of a company producing the vitamins and a pharmacist selling them that the vitamins will contain the proper balance of the ingredients and will improve our overall health, in other words have proper quality commonly expected of such products.

When a case of implied warranty goes to court, courts usually determine merchantability of product by consumers’ reasonable expectations. For example, it is reasonable to expect that when ordering a meal in a restaurant it will be prepared from not-expired products. Or when we buy a nice looking an smelling fruit and discover that it is rotten inside, this would violate implied warranty.

I have read an article in The Economist issue from the 15th of November about the car industry. The article has featured two pictures of the cars which are attached. One of the pictures features a new Chevrolet car on an exhibition and the second, old Russian Lada. The article does not directly deal with implied warranties or with features of the cars, but a buyer usually knows what to expect when buying a car. The implied warranty of car merchantability guarantees that the car is safe to drive and is in the appropriate condition for the price paid.

When buying a Chevrolet car, one can expect a certain level of quality, comfortable driving, durable and safe car. There are some features that are expected from a modern automobile and that go without saying, mainly proper level of comfort and safety. On the second picture, quite contrasting with the first one, we see a car of a Russian manufacturer AvtoVAZ, called Lada. When buying this car consumers can also rely on proper merchantability, but in this case it is obvious that consumers’ expectations should not be too high. First of all the price of the car implies lower quality. Secondly, our textbook describes warranties implied from prior dealings. A person buying Lada should not expect durability, comfortable seat or the most modern technologies. It is implied in bad prior history of malfunctions and breakages. Even having a bad image and prior history, a consumer still can expect that a car will drive properly, however, one should not count on a great level of comfort. Each car, even the one with cheap price and bad prior history has implied warranty. It should be reasonably fit for the general purpose for which it is sold, that is for driving.

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