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What are the various types of warranties?

There are two types of warranty; express warranties and implied warranties, including merchantable warranties and warranties of fitness. The seller clearly states express warranties and covers goods advertised to meet consumers expectations. They can be written or spoken warranties.

Whats a warranty provision?

Where a company sells its products, etc. with a warranty for repair/replacement within a certain period, a provision will normally be made in the accounts for the anticipated repair costs, etc. in respect of the items sold in the period.

What are some examples of implied warranties?

For example, if you tell a salesman you want a saw for cutting metal and it turns out it wont cut through metal, you may return the item under the implied warranty of fitness. With the warranty of fitness, the good or product works fine, but it does not meet the buyers intended use.

What is an example of implied warranty of fitness?

For example, if a farmer goes to a farm supply store, and tells the salesman he needs a plow for the rocky soil of his farm, and the salesman directs him to a particular plow, there may be an implied warranty that the plow in question is fit for use in rocky soil.

What are the 3 types of warranties?

There are two types of warranties: express and implied. Under the implied category are three major subtypes: the implied warranty of merchantability (only given by merchants), the implied warranty of fitness for a particular purpose, and the implied warranty of title.

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