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Failure to Honor the Implied Warranty of Merchantability with the Purchase of a Vehicle Service Contract

Purchasing a used car in Washington State comes with legal safeguards, but what if a dealership illegally fails to honor the implied warranty of merchantability while selling you a vehicle service contract? If you're searching about this issue, you may have bought a defective vehicle only to discover the dealer wrongfully waived or refused to abide by the protections under RCW 48.110.075(2)(e). This law prohibits dealerships from disclaiming the vehicle’s implied warranty if they sell a service contract within 90 days of the sale, ensuring the car is fit for ordinary use—safe, reliable, and free from major defects. As an attorney for plaintiffs specializing in auto fraud and warranty cases in Washington, we've assisted clients in suing dealerships for these breaches, recovering repair costs, refunds, and damages under the Automobile Dealer Practices Act (RCW 46.70) and the Consumer Protection Act (RCW 19.86). This guide discusses common situations where dealerships illegally fail to honor this warranty with service contracts, red flags, legal ramifications, and how to sue.

In a state with strong consumer laws, don't let a dealer's scam leave you with a lemon—fight back if they've violated RCW 48.110.075(2)(e).

What Is the Implied Warranty of Merchantability in Washington State?

Under RCW 62A.2-314, the implied warranty of merchantability automatically applies to used cars sold by dealers, guaranteeing the vehicle is fit for safe transportation, in reasonable condition, and without significant defects. However, RCW 48.110.075(2)(e) specifically protects buyers: if a dealer sells a vehicle service contract within 90 days of the sale, they cannot waive this warranty. This prevents dealers from selling "as-is" while upselling contracts that imply coverage, only to deny responsibility for defects. Breaches often lead to consumer protection claims for unfair or deceptive practices, with potential treble damages.

Common Situations Where WA Dealerships Illegally Fail to Honor the Warranty with Service Contracts

Dealers may illegally disclaim the warranty despite selling a service contract, violating RCW 48.110.075(2)(e). Typical scenarios include:

  • Selling "As-Is" with Upsold Contracts - Dealer waives warranty but sells a service contract within 90 days, then refuses repairs for defects like engine failure.

  • Hidden Defects or Breakdown Post-Sale - Vehicle breaks down soon after and the vehicle service contract company denies the claim for a pre-existing condition. Then the dealer claims no warranty despite the service contract sale leaving the consumer with a useless vehicle service contract and without a remedy.

  • Misleading Waivers - Buried "as-is" language in contracts, ignoring the 90-day rule when pushing add-ons.

  • Refusing Coverage for Major Issues - Denying claims for safety defects (e.g., brakes), breaching implied protections. These violations are common in used car sales, where dealers profit from service contracts while dodging liability.

Red Flags of Illegal Warranty Disclaimers at Washington Dealerships

Be alert for these indicators:

  • "As-Is" with Service Contract Push - Waiver signed, but dealer sells a contract immediately after.

  • Quick Breakdowns - Major problems within weeks, dealer refuses help citing waiver.

  • Vague Contract Language - Warranty details not clearly explained.

  • Pressure for Add-Ons – Rushed sales of contracts without mentioning warranty implications.

Always get an independent vehicle inspection and review RCW 48.110.075.

Legal Ramifications for Dealers Breaching the Implied Warranty in Washington

Violations can result in:

  • ADPA (RCW 46.70) and CPA Lawsuits (RCW 19.86) - Sue for unfair or deceptive acts or practices, recovering damages, treble awards, and fees.

  • Breach of Warranty Claims - Demand repairs or refunds; courts enforce the warranty if contract sold within 90 days.

  • Attorney General Penalties - Fines for unfair practices; report to atg.wa.gov.

How to Sue a WA Dealership for Failure to Honor Implied Warranty with Service Contracts

  • Demand Compliance - Notify dealer in writing to honor the implied warranty of merchantability on the vehicle.

  • Gather Proof - Contracts, repair bills, and expert reports.

  • Hire an Attorney – One of our most common lawsuits against dealerships is consumer protection law violations for selling a vehicle service contract and then refusing to honor the implied warranty of merchantability on the vehicle when critical defects arise.

  • Seek Remedies through Litigation - Refunds, repairs, and damages may be awarded in litigation. Cases often settle, but we take them to trial, if necessary.

Tips to Enforce Implied Warranties in Washington Car Purchases

  • Review for waivers before signing.

  • Buy service contracts strategically.

  • Document all communications.

Enforce Your Rights: Contact a Washington Auto Fraud Lawyer Today

Failure to honor implied warranty of merchantability with service contracts in Washington state is illegal—sue for justice. At Hogue Law Firm, we challenge breaches statewide.

Schedule a consultation—call 509-934-1998 or fill out our online form.

Chris HogueHogue Law Firm