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Often overlooked implied warranties apply to a host of sales.

People tend to associate the term "warranty" with the written statements provided to them with the purchase of a shiny new item. Less often considered are implied warranties, which may also attach automatically, without a writing, and accompany the purchase of certain items.

When purchasing goods, be aware that the purchase agreement may be subject to body of statutory law that sets-up special implied warranties. "Goods" include any manner of manufactured products which are moveable at the time of sale.

These special implied warranties are twofold: the implied warranty of merchantability, and the implied warranty of fitness for a particular purpose. The implied warranty of merchantability guarantees the buyer essentially that the goods will be of average quality and fit for the purposes for which the goods are normally used.

The implied warranty of fitness for a particular purpose, on the other hand, applies only when the seller knows of the buyer's intended use and that the buyer is relying on him to furnish suitable goods. In those circumstances, the seller additionally warrants that the goods will actually be fit for the buyer's intended use. These two warranties usually do not apply to agreements for services; when an agreement calls for both the provision of goods and services (as many do), however, the courts must determine if the contract is primarily for the provision of goods or for services. If the agreement is primarily for the sale of goods, the implied warranties will attach. But this determination has lead to an expansive grey area involving the application of implied warranties.

Implied warranties are not without limitation. They are generally overridden by a written warranty covering the same goods, if the warranties are inconsistent. In addition, implied warranties may be disclaimed altogether in writing, although certain language is required. The most common language for disclaiming implied warranties are the words "as is" or "with all faults," or a provision that the written warranty is the only warranty given by the seller.

Finally, when a buyer has the opportunity to inspect goods prior to purchase, the implied warranties will not cover any defects that a reasonable inspection should have revealed. Implied warranties serve as both important protections for buyers and sometimes unwary traps for sellers. When the sale of goods is involved, both sides should consult with an attorney and familiarize themselves with the warranties they are both giving and receiving.

DAVIDSON LAW FIRM

Cantrell at State

Little Rock. Arkansas 72203

374-9977

www.davidsonlawfirm.net

Charles Darwin "Skip" Davidson
COPYRIGHT 2006 Journal Publishing, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2006 Gale, Cengage Learning. All rights reserved.

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Title Annotation:A PUBLIC SERVICE OF DAVIDSON LAW FIRM
Author:Davidson, Charles Darwin
Publication:Arkansas Business
Date:Jun 5, 2006
Words:417
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