In the US product warranties are governed by article 2 of the Uniform commercial Code, valid in all territories of the United States of America with the exception of Louisiana. This is also known as the Magnuson-Moss Warranty Act. A main distinction in the law is that between express warranties and implied warranties.

Express warranties refer to the explicit promises made by brands regarding the quality and characteristics of the product sold or offered as a sample to consumers. An example of express warranty is an advertisement for a brand of watches that claims its products are waterproof up to 100 meters underwater.

Implied warranties allow consumers to purchase a good confident that they will fulfill basic standards. There are three categories:

• Warranties of merchantability: to be commercialized, goods must reach a medium quality threshold, have appropriate packaging and labels, and be appropriate for their target use. This warranty is not in place when the goods are purchased from a seller that usually deals with a different category of goods.
• Warranties of fitness for a particular purpose: this type of warranty is applicable when the seller knows that the buyer will use the product for a specific purpose. For example, the warranty will be violated if the tire shop provides the customer with tires that are not appropriate for driving in the snow despite being asked for a product specifically for that purpose.
• Warranties of title: these warranties imply that the seller has a right to sell the goods. This exonerates the client from having to pay twice for a good in case it is confiscated by whoever holds the rights to it.

The life of a contractual warranty in America varies depending on the category of the product. On average, it lies between 1 and 3 years. In some cases a lifetime warranty is expected, which would cover the product for its entire market lifetime.

In terms of disclaimers, article 2 of the Uniform Commercial Code requires producers to specify the type of warranty that is excluded at the time of sale (merchantability, fitness, or title). If no type of warranty is provided there must be a statement that the product is being sold ‘as is’ or ‘with all faults.’ Special attention must be given to the disclaimer: it must be written in a clear and visible manner, meaning that bold, caps and other graphic styles and colors (usually red) should be used.

In retail commerce in the United States of America and in Canada extended warranty contracts, which extend the period of the warranty to consumers, are especially common. This type of warranty excludes external factors, abuses of use, voluntary damages, commercial ends, or anything beyond normal usage. The extended warranty is offered by the retailer or the producer and the cost is calculated as a percentage on the retail price of the good. There are several companies of varying size that offer extended warranty contracts for specific product categories. These contracts function exactly like insurance contracts: the companies ‘bet’ on the fitness of the product, and on the fact that claims can be handled at a low cost.

Through its network of law firms, Exportusa provides legal assistance and consulting in the revision and preparation of commercial contracts in the United States, including the correct identification and formulation of warranty clauses for your products.