The Implied Warranty of Acceptable Quality
The Sale of Goods Act (Ontario) implies into every contract of sale that goods sold in the course of business are of merchantable quality, correspond with their description, and are reasonably fit for any particular purpose made known by the buyer to the seller. This implied warranty does not depend on any written promise by the seller.
Section 9 of the Consumer Protection Act, 2002 reinforces these implied conditions: in consumer transactions the implied warranties cannot be waived or excluded by any contract term. An 'as is' clause in a consumer sale has limited effect in Ontario, because the statutory implied warranties continue to apply.
- Merchantable quality: fit for the ordinary purposes of the goods
- Correspondence with description: matches the advertised or catalogued specification
- Fitness for purpose: where the buyer relied on the seller's judgment for a particular use
- Durability: goods should last a reasonable period given their nature and price
Express Warranties vs Implied Warranties
An express warranty is any promise the supplier makes about a product, either in writing (a warranty card, a box claim, a webpage) or verbally during the sales interaction. An express warranty is enforceable on its own terms and for its stated duration.
An implied warranty is created by law and applies whether or not the supplier acknowledges it. In Ontario, the implied warranties under the Sale of Goods Act apply in parallel with any express warranty, and the consumer may rely on whichever gives the stronger remedy.
Real Example: Defective Appliance
A consumer purchases a washing machine from an Ontario retailer. The manufacturer's express warranty is one year. Eighteen months after purchase, the main bearing fails. The retailer declines to help, citing the expired express warranty.
The Sale of Goods Act implied warranty of merchantable quality applies independently of the one-year express warranty. A reasonable consumer expects a washing machine to last substantially longer than 18 months. The consumer may have a claim in Small Claims Court under SGA s. 15 for breach of the implied condition of merchantable quality, seeking repair costs or a partial refund.
Available Remedies
Where an implied warranty is breached, the possible remedies include rejection of the goods, rescission of the contract, repair, replacement, price reduction, and damages for consequential loss. The appropriate remedy depends on the severity of the defect, the time since purchase, and the conduct of the parties.
A claim under the implied warranty must be commenced within two years of discovering the breach under the Limitations Act, 2002 (Ontario). Documentation of the defect and of communications with the supplier supports the claim.
- Rejection and refund for a substantial breach discovered soon after purchase
- Repair or replacement for a defect during the reasonable life of the goods
- Price reduction where the goods are retained with a minor defect
- Consequential damages where a defect caused additional loss