Chapter 24 Warranties

Magnum Moss Warranty Act

1. Disclose all essential terms and condition in a single document. 2. Stated in simple

an express warranty

is a statement that is written, oral, or by demonstration about the quality or performance of goods offered at time of sale. Seller's statement does create a warranty.

Warranty of title

seller's promise that he/she owns item being sold. Ex: -buying a car, can't warranty stolen items

An implied warranty

an unwritten promise created by law, that a product will do what is supposed to do

warranty of merchantability

an unwritten promise the item sold is of at least average quantity.Ex: - radio must play. Saw- must cut

limited warranty

anything less than a full warranty

Puffing

exaggerated statement or advertising about desirability or reliability of a product. Seller's statement does not create a warranty.

breach

failing to cover a warranty

warranty

is a promise or guarantee made by a seller about the quality or performance of goods for sale

Full warranty:

1. a defective product will be fixed or replaced at no cost. 2. consumer will not have to do anything unreasonable (paying for shipping etc) 3. if product cannot be fixed consumer will get a refund or replacement 4. it applies to anyone who owns the product during the warranty period

4. compare warranties when shopping 5. consider duration and what's covered 6. check state's warranty laws

Purpose of warranty? (last 3)

true

The disclaimer must be written and placed where consumer can see it.

limited warranty

Usually just covers parts not labor

Disclaimer

an attempt to limit the seller's responsibilities should the product become defective. Ex: as is , with all faults (floor model)

Warranty of fitness for a particular purpose

consumer tells the seller before buying the item what the specific purpose is for. Ex: -waterproof watch

Strict liability

legal responsibility for damage or injury even if you are not negligent. This is the basis for recovering damages from a manufacturer for a defective product

limited warranty

paying for shipping

1. gives the consumer important rights 2. to be aware of the warranty at time of purchase 3. not all warranties are the same

what is the purpose of a warranty? (first 3)

consider how long the warranty last, what part are covered, and what you get under the warranty

when evaluating a warranty you should: