What is a Warranty?
A warranty is a promise made by a manufacturer or seller regarding the quality and condition of their product. This guarantee often specifies the conditions for obtaining repairs, refunds, or exchanges if the product fails to perform as advertised. Warranties give consumers confidence in their purchases.
Key Takeaways
- Warranties are promises about product conditions made by manufacturers or sellers.
- Buyers must fulfill certain conditions to benefit from the warranty.
- Warranties can be clearly stated (expressed) or implied.
- The Magnuson-Moss Warranty Act protects consumers from misleading warranty practices.
- A guarantee specifically ensures a product’s performance and quality.
How Warranties Work
Warranties, whether expressed or implied, offer a level of assurance about the condition of goods or services. They are usually valid for a limited period, after which the manufacturer or seller’s obligation to repair or replace fails. Warranties include exceptions—most cover only defects due to parts or workmanship flaws. Extended warranties, which consumers can purchase separately, provide additional coverage beyond the standard period.
Special Considerations
The 1975 Magnuson-Moss Warranty Act requires that warranty terms be explicitly detailed to protect consumers, labeling disclosures as full or limited warranties. The act strictly forbids deceptive practices, ensuring warranties are clear and infringements actionable.
Types of Warranties
Express Warranty
An express warranty explicitly assures that a product meets certain standards. If it doesn’t, the manufacturer promises to fix or replace it. Express warranties can be verbal or written. However, over-hyped claims—referred to as puffery—are not covered.
Implied Warranty
An implied warranty, without being explicitly stated, assures that a product operates as intended and meets basic quality standards. It is valid unless explicitly disclaimed, common in “as is” sales.
Warranty Sub-Types
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Extended Warranties: Extend the coverage period and terms provided by standard warranties. These are often sold for high-value items like cars, electronics, and appliances.
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Special Warranty Deeds: Apply to property transactions, ensuring the title is clear at the sale time and free of encumbrances and claims.
Denied Warranty Claims
Altered Products
Warranties cover products in their original state. Modifications may void warranties, as seen with some vehicle enhancements affecting reliability.
Owner Actions
Manufacturer warranties are generally honored unless product misuse, extreme environmental exposure, or unauthorized repairs are involved.
Warranty vs. Guarantee
Though often used interchangeably, warranties and guarantees differ. A warranty is typically a free, included promise covering repairs for defects. Meanwhile, guarantees assure a product will meet defined standards, addressing any shortfalls without additional charge.
Resolving Warranty Disputes
To resolve warranty disputes, follow these steps:
- Read and understand the warranty terms.
- Contact the seller as the first point for addressing issues.
- If unresolved, report to the Federal Trade Commission (FTC).
- As a last resort, consider legal action—but weigh the associated costs.
Warranty Tips
Protect your warranty rights by:
- Always reading the warranty before buying.
- Retaining receipts and copies of warranties.
- Purchasing from reputable companies known for good warranty service.
- Maintaining products according to the guidelines.
How Does a Warranty Work?
A warranty guarantees specific performance standards. Failing these standards entitles buyers to ask for repairs or replacements, adhering to the stipulated conditions and exceptions.
What Does Having a Warranty Mean?
Owning a warranty means that under particular conditions, manufacturers will repair or replace a defective product, ensuring its reliability and performance.
What Are the 3 Types of Warranties?
Three broad categories based on different circumstances and products are:
- Express Warranties
- Implied Warranties
- Extended Warranties
What Is an Example of a Warranty?
Picture purchasing a new television. The box includes a document detailing the manufacturer’s commitment to repairs or replacements if issues arise within a given time frame.
The Bottom Line
A warranty is a manufacturer’s or seller’s commitment that defective products will be repaired or replaced under specific terms and conditions. Express and implied warranties, along with their subtypes like extended warranties and special warranty deeds, serve different products and needs. Under U.S. laws, such as the Magnuson-Moss Warranty Act, consumers have substantial protection.
Related Terms: Consumer Rights, Product Guarantee, Warranty Claim, Extended Warranty.
References
- Office of the Law Revision Counsel United States Code. “15 USC Ch. 50: Consumer Product Warranties From Title 15—Commerce and Trade”.
- Cornell Law School. “Implied Warranty of Merchantability”.
- Federal Trade Commission. “FTC Staff Sends Warranty Warnings”.
- Federal Trade Commission. “Report Fraud”.
- Federal Trade Commission. “Final Action: Magnuson-Moss Warranty Act Interpretations”, Page 5.
- New York State. “Uniform Commercial Code”.
