However, these warranties are often inadequate, incomplete, or lack the foresight to consider new situations that did not exist when the warranties were bargained for and agreed to. Express warranties also only have effect between the parties who contract with each other - parties outside the contract have no rights as to these warranties. It is also a fact that these express warranties represent only the party's interests who were bargaining for the contract rather than society as a whole. They, quite naturally, were not intended to cover parties and circumstances outside the consideration of the specific contract in question. Implied warranties grew out of the need to cover situations overlooked or disregarded in contract formation.
Implied warranties can either be waivable by express waiver between the parties, or nonwaivable.
The nonwaivable implied warranties developed into product liability laws. Under the U.C.C., these implied warranties were established as promises that the merchant is presumed to have made to the customer who bought goods from him.