Express warranties are created when the seller makes a guarantee to the buyer that the product or service being offered has certain qualities.
[7] Implied warranties are unwritten promises that arise from the nature of the transaction, and the inherent understanding by the buyer, rather than from the express representations of the seller.
The rules regarding warranties are largely standardised; i.e., the concepts of offer, acceptance, consideration, capacity to contract and intention to create legal relations.
Countries with civil law systems, however, recognise legally binding contracts which are not supported by consideration.
[citation needed] In the United States, various laws apply, including provisions in the Uniform Commercial Code which provide for implied warranties.
[9] In some states, statutory warranties are required on new home construction, and "lemon laws" apply to motor vehicles.
Consumer protection laws implemented by statute, however, provide additional remedies as it is not usually expected that a television will last for only 90 days.
In Avrora Fine Arts v Christie, Manson and Woods (a UK High Court case), the auctioneers had issued a "limited warranty" that a certain painting sold at auction had been painted by the Russian painter Boris Kustodiev, which experts subsequently stated was not the case.
The sale was cancelled and the buyer was reimbursed, but further claims of negligence and misrepresentation were denied because they fell outside the warranty's scope.
Exclusions may include commercial use, "acts of God", owner abuse, and malicious destruction.
[17] For instance, an auto warranty from a car dealership may be subcontracted and vehicle repairs may be at a lower rate which could compromise the quality of service.
At the time of repair, out-of-pocket expenses may be charged for unexpected services provided outside of the warranty terms or uncovered parts.
Traditionally, warranties are factual promises which are enforced through a contract legal action, regardless of materiality, intent, or reliance.
[18] Representations are traditionally *pre*contractual statements which allow for a tort-based action if the misrepresentation is innocent, negligent or fraudulent.
[21] Written warranties on new major appliances, such as refrigerators, kitchen stoves and dishwashers, usually cover the cost of parts and labor to repair defects in materials or workmanship which appear under normal home use.
[30][31][32][33][34] Tank models from A. O. Smith do not allow heating elements to be replaced with lower (or higher) wattages, and do not cover renter-occupied single family.
[32][33] Smith's tank models for manufactured housing do not provide coverage if a whirlpool or hot tub is connected.
[31][34] Smith's tankless water heaters do not restrict coverage to a single family, and require professional installation.
In the United Kingdom, types of warranties have been classified as either an: In the United Kingdom, the Financial Conduct Authority (FCA), which began to regulate insurance contracts in this context in 2005, determined that additional warranties sold by car dealerships are "unlikely to be insurance".
When a problem occurs with a covered appliance or mechanical system such as an air conditioning unit or furnace, a service technician repairs or replaces it.
Increasing reluctance on the part of suppliers to offer an IPR warranty or indemnity has been noted in recent years.