Certified Professional Public Buyer (CPPB) Practice Test

What are the two main types of warranties recognized?

1. Personal and business warranties

2. Express and implied warranties

3. Limited and unlimited warranties

4. Financial and material warranties

The correct answer is: Express and implied warranties

The correct identification of the two main types of warranties as express and implied is grounded in legal and commercial principles. Express warranties are explicitly stated and documented guarantees regarding the quality or reliability of a product or service, often found in contracts or advertisements. For instance, when a manufacturer guarantees that a product will perform in a specific way or for a certain period, it creates an express warranty. This clear articulation provides the buyer with a known level of assurance from the seller. In contrast, implied warranties are those that are not explicitly stated but are legally assumed based on the nature of the transaction, the product, or the relationship between the buyer and seller. For instance, a consumer expects that a new appliance will work for its intended purpose when purchased, even if the seller has not articulated this guarantee. Implied warranties often include the warranty of merchantability (the product is fit for the general purpose for which it is sold) and the warranty of fitness for a particular purpose (the product will meet the specific needs of the buyer, as communicated to the seller). Understanding these distinctions is crucial for buyers and sellers in contract negotiations, as they set expectations for product performance and give rise to potential legal responsibilities in case the product fails to meet those expectations. This knowledge also