What Are Warranty Laws for Businesses in England and Wales?

If you are operating a business, you will want to make sure that you are familiar with your consumers’ rights against you. The law on warranty is an important way consumers can assert a legal right against you. Knowing the warranties you make through your contracts is important, as a consumer can claim compensation if you breach a warranty. This article will explain some key points around warranty laws and offer some guidance on avoiding any potential liability. 

What is a Warranty?

When you make a contract with another party, you agree to certain terms and conditions. You can make a contract in a wide range of situations. The classic example is where two parties sign an agreement. However, you also make a contract whenever you sell goods to a consumer. 

A warranty is a term of the contract, similar to a condition. Warranties can be express, or they can be implied. They are like guarantees which promise that a good will be of a certain quality. If you breach a warranty, the consumer can claim a breach of contract and compensation. 

Express warranties are stated in the contract itself. For example, a contract may give a warranty in the case of faulty goods. Whereas, implied warranties are legal rights that are not necessarily stated in the contract terms but are taken to be part of the contract regardless. Common law cases determine the specific implied warranties. 

Express Warranties

You can make an express warranty orally, or it can be a written warranty. An express warranty is where you make a factual statement, which a buyer relies on when buying the goods. Further, it does not matter whether you say that you are making an express warranty or not. 

If you make an express warranty and breach it, you will usually have to offer a free repair or replace the product for no extra cost. This is a right enjoyed by consumers under the Consumer Rights Act and applies if you are dealing with consumer products. A consumer product is a product that you sell to ordinary people instead of a product you sell to other sellers.

Implied Warranties

An implied warranty is different to an express warranty in that it applies even if you have not stated it orally or in writing. For example, if you have not stated a time period in which you have agreed to deliver the goods you have contracted for, an implied warranty will oblige you to provide those goods in a reasonable time. 

Further, implied warranties can oblige you to make sure that the goods you are supplying can be used for the reason for which you are selling them. Therefore, the idea of a ‘faulty good’, in this way, is related to the purpose for which you sell your goods. 

Additionally, if your case goes to court, the court may be able to imply certain warranties into your contract based on your ‘course of dealing’ before entering into the contract. This means that a court might look at warranties that you assented to in previous agreements to see if they apply now. 

A court might also imply a warranty based on what they take to be the parties’ mutual intent before concluding the contract. They do this by looking at other similar agreements between people in the past or by trying to understand what you meant when you came to your agreement. This approach can give the court flexibility in giving compensation for wrongdoing.

Key Takeaways

Being familiar with UK consumer law will be useful for knowing your obligations to your consumers. Additionally, you should ensure you are always careful with statements that you make which your consumer could rely on. If you make a statement that turns out to be not quite true, you could be liable to pay compensation to many consumers. 

Suppose you find yourself in a dispute and are unsure what legal rights the consumer has. In that case, it is also a good idea to seek legal advice to understand any potential implied warranties that the other party might be able to rely on.

If you need help understanding warranty laws or with a dispute regarding warranties, our experienced disputes lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.

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