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WARRANTY VS. GUARANTEE: WHAT YOU NEED TO KNOW
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Consumer Transactions
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Created by FindLaw's team (https://www. ndlaw.com/company/our-team.html) of legal writers Product Warranties and
and editors | Last updated June 20, 2016 Returns
(https://consumer. ndlaw.com/con
transactions/product-
Imagine that when shopping for a new car, one dealer guarantees its product for ve years, and
warranties-returns.html)
the other provides a ve year warranty for the same car. All things being equal, does the use of
warranty vs. guarantee change the meaning of the merchants’ promises? In short, no.

A warranty (https://consumer. ndlaw.com/consumer-transactions/consumer-warranty-

basics.html) provides a promise from one party to the other that certain conditions, such as the
quality or life span of a product, will be met. If the product doesn’t meet the conditions of the
warranty, it can usually be returned, repaired or replaced. If a merchant guarantees a feature of
a product, or even your satisfaction with it, the same holds true. The difference between a
warranty and a guarantee is largely a question of word choice.

What Creates a Warranty or Guarantee?

Any promise about the quality, condition, or reliability of a product that a seller makes and that
you rely upon when buying a product can create a warranty or guarantee. A direct statement,
either verbally or in writing, promising that a product will meet speci c expectations creates an
express warranty (https://consumer. ndlaw.com/consumer-transactions/what-are-express-and-
implied-warranties.html). For example, if a car salesperson promises a minimum gas mileage
for a particular vehicle, they have created a warranty. However, even though warrantees can be
created orally, it’s smart to ask for them in writing as well, in order to create a record of the
merchant’s promise.

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Other warranties don’t have to be expressed explicitly at all. These implied warrantees are
guarantees that the law reads into your transaction. Almost all consumer products, for example,
are covered by an implied warranty of merchantability, meaning that the product is guaranteed
to work as typically expected. A merchant can disclaim implied warranties through disclaimers
or “as is” sales (https://consumer. ndlaw.com/consumer-transactions/what-does-caveat-
emptor-mean-.html), but several states will refuse to recognize “as is” disclaimers for consumer
goods. Similarly, some warranties can be limited (https://consumer. ndlaw.com/consumer-
transactions/difference-between-a-full-warranty-and-a-limited-warranty.html) in scope and
others may be voided (https://consumer. ndlaw.com/consumer-transactions/what-will-void-a-
warranty-.html) by certain actions. For example, a lifetime guarantee on your refrigerator may be
limited to the expected lifetime, say ten years, of the product and voided by unauthorized
repairs or modi cations.

No Magic Words Needed

Whether a merchant describes his promise as a guarantee vs. warranty won’t prevent it from
having legal effect. It’s the promise, not the phrasing that matters. Under the Uniform
Commercial Code (https://www.sba.gov/category/navigation-structure/starting-managing-
business/starting-business/understand-business-law-7), which has been adopted in some form
by every state, a warranty can be created by an a rmation of fact, promise made by the seller,
or description of the goods can create a warranty. Even a sample or model which is supposed
to represent the nal product can create a binding guarantee.

However, not all statements will result in a promise the seller can be held to. A merchant’s
comments that are blatant opinions or exaggerations (https://www.ftc.gov/public-
statements/1983/10/ftc-policy-statement-deception), such as describing a vehicle as the “best
car on the road” or a household appliance as “a miracle of modern science,” don’t create
warranties or guarantees. Courts treat these forms of advertising as puffery, which normal
consumers wouldn’t take seriously.

Satisfaction Guaranteed, or Your Money Back

Some products guarantee your satisfaction or provide a “money back guarantee

(https://www.ftc.gov/tips-advice/business-center/businesspersons-guide-federal-warranty-
law)." If a merchant advertises a product in this way, they must be willing to provide a full refund
if a customer, for any reason, decides to return the product. These guarantees may be limited to
certain durations, such as 30 days after purchase.

Other Meanings of Guarantee

In only very speci c legal situations will the use of guarantee vs. warranty be signi cant.
Legally, a guarantee, as opposed to a warranty, can also be describe as a promise to be
responsible for another’s debt or obligations. For example, a parent may guarantee a child’s car
loan. If the child fails to make payment, the parent will be responsible to the lender for the
child’s missed payments. In this situation, the parent acts as the guarantor
(https://dictionary. ndlaw.com/de nition/guarantor.html) of the child’s obligations. Since the
parent’s guarantee is conditional, the child will have to fail in his or her obligations before the
parent becomes responsible.

Talking to a Consumer Protection Attorney

If you believe you’ve purchased a product that has failed to live up to its guarantee or warranty,
consider contacting a consumer protection lawyer
(https://lawyers. ndlaw.com/lawyer/practice/Consumer-Protection) to discuss your options.

/
Next Steps

Contact a quali ed attorney to assist with any issues related to consumer transactions.

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