Business Law on Warranties

On Warranty

Apparently, consumers views the warranty coverage as a legal means of seeking redress is a product performs poorly or failed to provide its functions and promise. On the contrary, in the view of the manufacturer, warranty is used as a promotion tool and serves as an alternative to price competition and acquired the provisions of warranty as their strategy over the close competition. Manufacturers developed a competitive advantage with the basis of warranty to boost their market share.

The positive benefits of the warranty were received by the consumers and the improvement scope of the warranty became popular in a form of warranty coverage or extended warranties. Extended warranties are purchased by consumers and cover parts, as well as possibly labor, for a period beyond the expressed warranty duration. Consumers, accordingly to the Act of warranties are may be willing to pay for better warranty protection which results in consumers may turn to extended warranties as a way of compensating for insufficient express warranty protection.

Unfortunately, warranties are just an interpretation of the warrantor that they excluded in covering the repairs due to normal wear and tear and duplicate coverage in the express warranty. It is obvious that the warranty is part of the motivation of the manufacturer with the desire to reduce the risk.

Analysis

In case of purchasing second-hand products, the buyers should determine the capacity of the products and its running condition before making a decision. The buyer should demand from the store to test the product first to ensure the working process and condition of the products. It is the right of the buyer to see or observe the function of the second-hand products.

Usually, second hand stores and sellers fail to provide useful and accurate information about their products. So, it’s better that before purchasing in a second hand store, the buyer is smart enough to read the offered goods and services as well as the terms and conditions of the seller. Unfortunately, there are other stores that change their terms and conditions and sometimes subject for discussion. But the idea of providing warranty of the retailer or of the store is not part of the scope where the manufacturer gave his warranty. Manufacturers are not responsible if the retailers will address any warranties about the products.

Apparently, the act of warranty doesn’t require the manufacturers or sellers to provide a written warranty, but allows the manufacturer to determine whether to warrant their products in writing. Once the manufacturer decides to offer a written warranty on a consumer product, however, it should comply with the warranty act. The warranty act only covered the tangible property that is normally used for personal, family or household purposes and not in commercial and resale.

In a specific case of Ida with the saleswoman, the idea about the warranty will become different. If the saleswoman promised that the product can process enough information and can give efficiency to the user then, the law suggests that the saleswoman made a warranty of fitness for a particular purpose. It is because; the buyer relied on her language regarding the features of the product. And since the product did not accomplish it work and meet the standards in which the buyer is expected to receive, the saleswoman is breached her warranty of fitness for a particular purpose.

Ida should understand that if the store doesn’t offer the warranty will always mean that the product is potential in risk factors such as low quality, damaged or discontinued and should be available at a lower price – which is very obvious in their case. The action of the business in informing the consumer, like in writing made by Golden Sun Electronics, therefore the business will not be responsible if the product malfunctions or is defective. It must be clear to the consumers that the entire product risk falls on them.

In contrast, the business must specifically indicate that it dos not warrant “merchantability” and the consumer must understand that this also proves that most of the products they sell are defective or dangerous and causes personal injury to someone, the business still may be liable under the principles of product liability.

Since all the damage has been already done, Ida must demand for the promised amount of the store about the incurred damages and after that, she should instead help Kit to recover because the power of the contract freed the retailer from any further responsibilities.

Works Cited:

Consumer Law Warranty and Act [Online] Available at: http://consumer-law.lawyers.com/warranty-law/Consumer-Law-Warranty-FAQ.html [Accessed 26 Nov 2009].

Kelley, C., & Conant, J., (1991) Extended Warranties: Consumer and Manufacturer Perceptions, Journal of Consumer Affairs, 25(1).

Schwartz, A., & Scott, R., (2003) Contract Theory and the Limits of Contract Law, Yale Law Journal, 113(3)