What it is:
An implied warranty is an unwrittenthat a product or service works as expected.
How it works/Example:
An implied warranty is a
The Uniform Commercial Code (UCC) contains an "implied warranty of merchantability" that states that in every transaction, the good sold must be fit for the ordinary purposes for which the good is used, would pass without objection in the trade, is adequately packaged and labeled, and reflects the promises made on the label. Sometimes an implied warranty also exists when the seller knows what the buyer is going to use the good for and the buyer relies on the seller's judgment when choosing the goods. If the buyer is a knowledgeable buyer, however, the implied warranty doesn't always exist, especially if the buyer knows as much or more about the product than the seller does.
Why it matters:
Implied warranties protect consumers from purchases involving products or services that are not what was represented by the seller. They are often the legal mechanism behind why consumers can usually return defective products to merchants for a refund. Sometimes, sellers disclaim an implied warranty at the time of (though they have to do this in writing and usually in boldface print).