Chapter 24 Warranties

What is 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.

What is Bona Fide

authentic dealers of a product Ex. Rolex watches

What is Puffing?

exaggerated statement or advertisement about desirability or reliability of a product. Seller's statement does not create a warranty. Ex. Fantastic used cars

If the seller does not live up to the warranty the contract has been breached Breached?

failing to cover a warranty

What is a Disclaimer?

-An attempt to limit the seller's responsibilities should the product become defective Ex. As is, with all faults these words disclaim the implied warranty The disclaimer must be written and placed where consumer can see it

What are Implied Warranties?

-An unwritten promise, created by law, that a product will do what it is supposed to do Products must meet certain minimum standards This applies to only to products sold by bona fide

Examples:

1. A salesperson tells you that the TV will not need any repairs for five years 2. See a demonstration on vacuum in a store

When evaluating a warranty you should:

1. Consider how long the warranty lasts 2. Consider what parts or problems are covered or excluded 3. Consider what the consumer gets under the warranty

Purpose of warranty:

1. Gives the consumer important rights 2. To be aware of the warranty at time of purchase 3. Not all warranties are the same 4. Compare warranties when shopping 5. Consider duration and what's covered

Three types of implied warranties:

1. Warranty of merchantability- an unwritten promise the item sold is of at least average quality Ex. Radio- must play, Saw-must cut 2. Warranty of fitness for a particular purpose- consumer tells the seller before buying the item what the specific purpose is for. Ex- waterproof watch 3. Warranty of title- Seller's promise that he/she owns item being sold ex.-buying a car, can't warranty stolen items

What is a warranty?

A promise or guarantee made by a seller about the quality or performance of goods for sale -May contain a statement of what the seller will do if there is a problem. Ex. cover parts and labor (labor sometimes most expensive)

Under this Act the item must be labeled full or limited warranty. Full Warranty includes:

A. A defective product will be fixed or replaced at no cost B. Consumer will not have to do anything unreasonable (pay for shipping etc) C. If product cannot be fixed consumer will get a refund or replacement D. It applies to anyone who owns the product during the warranty period

What is 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

What is the best warranty to have?

Full warranty, because It covers everything and anyone during the period of the warranty period.

What is the Magnuson- Moss Warranty Act

Moss warranty Act requires written warranties to: 1. Disclose all essential terms and conditions in a single document 2. Stated in simple easy to read language 3. Be available to consumer before sale

Does this Act apply to items that cost $15 or less?

No

Do sellers have to give written warranties?

No. But if they do they have to follow Acts

What is Limited Warranty?

Protection less than a full warranty

Anything less than this is called a limited warranty:

Usually covers just parts and not labor

What are express warrants created based on

created by statements of facts, Opinion does count as a warranty