Manufactured Housing Practice Test

Which of the following is true regarding implied warranties?

1. They are always express and written

2. They apply only to new goods

3. They can exist even in the absence of an explicit agreement

4. They are waived if sold at discount

The correct answer is: They can exist even in the absence of an explicit agreement

Implied warranties are legal concepts that ensure products meet certain standards of quality and performance, even if there is no explicit agreement or written documentation stating these terms. The correct answer highlights that these warranties can exist independently of any formal contract or express terms. For example, when a consumer purchases a product, there is an underlying assumption that the item is fit for its intended purpose and of merchantable quality, regardless of whether these conditions are explicitly stated. In other words, as long as a consumer purchases goods or services, they can expect certain baseline protections, which exemplify the concept of an implied warranty. This principle is foundational in consumer protection regulations, as it reinforces the expectation that products will function as advertised and will be free from significant defects. Each of the other options does not align with the nature of implied warranties. Implicitly suggesting that they must always be written or that they are exclusive to new goods overlooks instances where they apply to second-hand items, or circumstances where a discount does not negate the existing implied warranty protections. Thus, the understanding that implied warranties can exist without an explicit agreement is essential for both consumers and retailers in managing expectations about the quality of goods.