The offer of a 3-year or 36,000-mile warranty by a car dealer on a new vehicle is an example of an implied warranty.

Question

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Express warranties are specific representations by the seller and relied upon by the buyer of the goods. The warranty that is spelled out by the car dealer is thus an express warranty. Implied warranties are legally imposed on the seller. It is implied, for example, that the product will conform to the customary standards of the trade/industry in which it competes.

The Offer of a 3-Year or 36,000-Mile Warranty by a Car