Chapter 24

 

Warranties

        -Promise/guarantee by the seller about the quality or performance of a

            product

                -May contain statement as to what seller will do to remedy problem if 

                    product does not perform

        -Things to look at:

                -How long does warranty last?

                -What’s covered?

                -What’s the remedy?

 

Express Warranties

        -Statement (written, oral, demonstrated) concerning the quality of a

                product that becomes part of the deal

                -Salesman saying “TV won’t need repairs for 5 years”

                -Seeing a vacuum cleaner pick up small particles

        -Oral, demonstrated warranties difficult to prove

        -Sellers to do have to give written warranties

                -If they do…

                        -Must be available before sale

                        -Must be “easy to read”

                        -Must be contained in a single document

        -Full warranty

                -Defective product replaced at no cost

                -Consumer will not have to do anything unreasonable

                -Product will be fixed in a reasonable time frame

                        -If not, consumer gets new product

                -Warranty applies to all owners of product

        -Limited warranty

                -Covers only certain parts

                -May not cover labor charges

 

Implied Warranties

        -Unwritten promise

        -Only applies to authorized dealers of a product

        -Warranty of merchantability

                -Item sold is of at least average quality

                        -Radio must play music

                -Warranty is implied except if seller “disclaims” it

                        -“As is” or “final sale”

        -Warranty of fitness for a particular purpose

                -Buyer tells seller item is needed for a specific purpose

                        -Seller sells product based on this

        -Warranty of title

                -Seller’s promise that product sold is owned by seller

        -Strict liabilityàdefective products

 

Disclaimers

        -Attempt to limit seller’s responsibility

        -“As is”, “with all faults”

        -Disclaimer must be written and placed

        -Sellers may not disclaim or modify any implied warranty during the written

                warranty’s time frame

 


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