Product Warranties in the US: Full vs Limited, Implied Warranties and Your Rights

The short version

• Companies don't have to offer a written warranty, but if they do, the federal Magnuson-Moss Warranty Act sets the rules.
• A written warranty is either full or limited, and the difference matters.
• Even without a written warranty, most sales by a business come with implied warranties under state law.
• An "extended warranty" is usually a service contract, which is something different.
• Under most states' commercial law, you generally have 4 years from delivery to sue for breach of warranty.

Express warranties

An express warranty is a promise the seller or manufacturer makes about the product: the written warranty in the box, but also specific claims in an ad, on the packaging or from a salesperson, such as "this jacket is waterproof". If the product doesn't live up to it, that can be a breach of warranty.

Full vs limited warranties

Under the Magnuson-Moss Warranty Act, a written warranty on a consumer product costing more than $10 must be labeled "full" or "limited", and sellers must let you see the terms before you buy, which they can do online.

A full warranty means

• a defect is fixed within a reasonable time, at no charge;
• if it can't be fixed after a reasonable number of attempts, you choose a refund or a replacement;
• it covers anyone who owns the product during the warranty period;
• you can't be required to do anything unreasonable to get service, such as returning a registration card;
• the implied warranties can't be limited in time.

A limited warranty

is anything less. It might cover parts but not labor, charge a handling fee, only cover the first owner, or require proof of purchase or registration. Most consumer warranties are limited, so read what yours covers.

Implied warranties: protection you didn't sign

Under the Uniform Commercial Code, which almost every state has adopted, a business that sells a product generally promises, without saying so, that it's merchantable: it does what that kind of product is supposed to do. If you relied on the seller's advice for a particular purpose, there's also an implied warranty of fitness for that purpose.

A seller can sometimes avoid implied warranties by selling "as is", but not if it gives you a written warranty or sells you a service contract at the time of sale or within 90 days. Then implied warranties can't be disclaimed, though a limited warranty can limit them to the same length as the written one. Some states don't allow "as is" sales of consumer goods at all.

"Extended warranties" are service contracts

The extra cover offered at checkout is usually a service contract: something you pay extra for, often run by a third party, and regulated by the states rather than as a warranty. Before buying one, check what it adds over the manufacturer's warranty and the implied warranties you already have, the deductible, the exclusions, and who actually pays claims.

How long you have

Under the Uniform Commercial Code, you generally have 4 years from delivery to bring a claim for breach of warranty. A contract can shorten that to as little as one year, and some states differ. For cars, every state also has a lemon law with its own rules for repeated defects.

When a company won't honor its warranty

1. Reread the warranty: what's covered, for how long, and how to claim.
2. Contact the company in writing, with your proof of purchase, and keep copies.
3. Use any dispute resolution program the warranty names. Some require it before you can sue.
4. Contact your state attorney general's consumer protection office, and report the problem to the FTC.
5. Consider small claims court. The Magnuson-Moss Act also lets you recover attorney's fees if you win a warranty case in court.

Also see whether repairing it yourself voids your warranty and returns, refunds and credit card disputes.