Such warranties include the warranty of merchantability (that the goods are in proper condition for use and free of defects), and the warranty of fitness for a particular purpose (e.g., a refrigerator must be able to keep food cold and fresh; a chair must be capable of supporting a person’s weight). These warranties are called implied warranties because the law assumes that they apply even if they are not expressly stated. If a product does not meet these standards, the purchaser may have the right to return it and get back the purchase price, or sometimes to receive monetary damages.

The law of contracts covers economic loss caused by the breach of warranties in the sale of goods. The Uniform Commercial Code, Article 2, also deals with the sales of goods and the implied and express warranties of merchantability in the sales of goods §§ 2-314 and 2-315.