Maritime and Boat Warranty Claims

Buying a boat or yacht is a significant investment, and buyers naturally expect their vessel to perform as promised. Unfortunately, disputes sometimes arise when a newly purchased boat develops defects, fails to perform as represented, or does not match the warranties made by the seller or manufacturer.

Boat warranty claims often involve a mix of state commercial law, federal consumer protection law, and, in some cases, maritime law. Understanding how these bodies of law—particularly the Uniform Commercial Code (UCC) and the Magnuson-Moss Warranty Act (MMWA)—interact is essential for protecting your rights when something goes wrong after a vessel purchase.

Understanding Boat Warranty Claims

A boat warranty claim arises when a buyer alleges that the vessel fails to meet the standards or promises made by the seller or manufacturer. Warranties come in several forms:

1. Express Warranties
   These are explicit statements or promises—written or verbal—about the boat’s quality, performance, or condition. For example, a seller’s assurance that “the engine was rebuilt last year” or that “the hull is free of defects” can create an express warranty.
2. Implied Warranty of Merchantability
   Under the UCC, if the seller regularly sells boats or marine equipment, the law automatically implies a warranty that the vessel is fit for ordinary use and of average quality within the trade.
3. Implied Warranty of Fitness for a Particular Purpose
   When a buyer relies on a seller’s expertise to select a boat for a specific use—such as offshore fishing, liveaboard cruising, or towing—and the boat fails to serve that purpose, this warranty may be breached.
4. Manufacturer’s or “Limited” Warranty
   Many new boats, engines, and marine components come with manufacturer-issued written warranties that cover repairs or defects for a specified time. These warranties are also regulated under the Magnuson-Moss Warranty Act.

How the Uniform Commercial Code (UCC) Applies to Boat Purchases

The Uniform Commercial Code, adopted in some form by every U.S. state, governs the sale of goods—including boats, yachts, and personal watercraft. While maritime law governs navigation and operations at sea, vessel sales are generally treated as commercial transactions under Article 2 of the UCC.

Key UCC principles affecting boat warranty claims include:

• Warranty Creation and Disclaimers
  Express and implied warranties arise automatically under the UCC, but sellers can attempt to limit or disclaim them. To be enforceable, disclaimers (such as “sold as is” or “with all faults”) must be clear and conspicuous.
• Notice Requirement
  Buyers must notify the seller within a reasonable time after discovering a defect. Failing to provide timely notice can bar a warranty claim.
• Remedies for Breach
  If a seller breaches a warranty, the buyer may seek repair, replacement, a refund, or damages for loss in value. In certain cases, the buyer may revoke acceptance of the vessel entirely.
• Interaction with Maritime Law
  Federal maritime law generally governs contracts that are “maritime in nature,” such as vessel repairs or charters. However, the sale of a completed vessel is not considered a maritime contract and typically falls under state UCC law.

The Magnuson-Moss Warranty Act and Boat Purchases

The Magnuson-Moss Warranty Act (MMWA) is a federal consumer protection statute that supplements state warranty law. Enacted in 1975, the MMWA was designed to ensure that consumers receive clear and enforceable warranty terms on products—including boats—sold with written warranties.

Key Provisions of the MMWA

1. Disclosure and Clarity Requirements
   If a manufacturer or seller provides a written warranty, the MMWA requires that warranty to be written in plain language and clearly identify whether it is a “full” or “limited” warranty.
2. Prohibition on Deceptive Warranty Practices
   The Act prevents manufacturers and dealers from disclaiming implied warranties (such as merchantability) when a written warranty is offered. In other words, if a written warranty is provided, the manufacturer cannot simultaneously claim the vessel is sold “as is.”
3. Right to Legal Remedies
   The MMWA gives consumers the right to bring a lawsuit in federal court for breach of warranty. Successful claimants may also recover attorney’s fees and costs, making it a powerful tool for consumers with valid claims.
4. Applicability to Boats
   The MMWA applies to consumer products, and courts have consistently held that recreational boats, yachts, and marine engines qualify. However, purely commercial vessels—used for business or charter operations—may fall outside the Act’s scope.

How the UCC and Magnuson-Moss Work Together

The UCC and MMWA work hand-in-hand. The UCC establishes the types of warranties and the remedies for breach, while the MMWA adds federal protections for consumers, such as disclosure rules and attorney fee recovery.

When a buyer brings a warranty claim over a defective boat, the claim is typically based on the UCC, and the MMWA provides an additional cause of action or enforcement mechanism if a written warranty exists.

For example:

• A yacht buyer discovers significant engine defects covered by the manufacturer’s “limited warranty.”
• The buyer can sue under the UCC for breach of warranty and also invoke the Magnuson-Moss Act to recover attorney’s fees if the manufacturer refuses to repair or replace the defective engine.

Common Warranty Disputes in Boat Sales

• Undisclosed hull or structural defects
• Engine or transmission failures soon after delivery
• Misrepresentations of a vessel’s age, hours, or condition
• Disputes over whether a manufacturer’s warranty covers a defect
• Denial of warranty claims due to alleged improper maintenance or modification

Because vessel sales often involve substantial sums and complex warranty language, even minor contractual terms can make a major difference in a case’s outcome.

Protecting Your Rights in a Boat Warranty Claim

If you suspect a breach of warranty after purchasing a vessel:

1. Review the Sales Contract and Warranty Documents
   Identify any warranty terms, exclusions, or “as-is” clauses.
2. Document All Issues
   Keep repair records, inspection reports, and communications with the seller or manufacturer.
3. Provide Timely Written Notice
   Notify the seller and manufacturer in writing as soon as you discover the defect.
4. Consult a Maritime and Warranty Attorney
   An attorney can determine whether your case falls under the UCC, the Magnuson-Moss Act, or both—and help you pursue remedies such as repair, refund, or damages.

Conclusion

Boat warranty claims sit at the intersection of state commercial law, federal consumer protection law, and maritime law. While the Uniform Commercial Code governs the sale of vessels as goods, the Magnuson-Moss Warranty Act adds another layer of protection when a written warranty is provided. Together, these laws ensure that buyers have meaningful recourse when a vessel does not live up to its promises.

If you’ve experienced issues with a recently purchased boat or yacht, it’s important to seek legal advice promptly. The experienced attorneys at Johns Law Group can help you navigate the overlapping legal frameworks, preserve your rights, and pursue fair compensation or resolution. Contact us today for a free consultation.