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Section 16

Warranties


16.2 Implied Warranty of Merchantability

  1. Implied in every contract for the sale of goods is a warranty that the good is fit for the ordinary purpose for which it is intended. [California Commercial Code]

    This means that when you sell a vehicle, if you do not indicate on the Buyer's Guide that the car is being sold "as-is", or with a "warranty," then you are providing the buyer with an implied warranty that the car will run and drive just fine for a reasonable time period, given the age, mileage, condition, and price of the vehicle. It is always best to mark on the Buyer's Guide either "as-is" or "warranty" so there is no confusion as to whether there is any warranty or not.


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