Warranties on goods

Express Warranties

An "express" warranty is any statement made about the nature, capacity, durability, etc. of a product or service that a customer might rely on in making a buying decision. Typical examples of express warranties are "guaranteed for life," 100% fat free," or "non-toxic." Express warranties are usually written but can arise by inference from an advertisement or other verbal or visual representation by the manufacturer.
Nothing in the law requires that a written warranty be offered. However, if one is offered for a consumer product costing more than $15.00, the warranty must conform to certain federal guidelines. The Federal Trade Commission requires that in addition to disclosing the terms and conditions in simple language, the warranty must include the following:

(a) clear description and identification of products, parts or components covered by the warranty;
(b) statement of what the warrantor (manufacturer or retailer) will do if there is a defect or malfunction of the product. The statement must describe the items or services the warrantor will pay for or provide;
(c) identity of the person the written warranty is extended to (explaining, for example, if the warranty is limited to the original buyer or is extended to second owners of the product);
(d) how long the warranty lasts and, if different from the purchase date, when the warranty term commences (for example, when the company receives the owner registration card);
(e) step-by-step explanation of what to do to get a repair or replacement of the product under the warranty; the name and address of the warrantor (the one making the warranty); the name and address of the department responsible for warranty obligations; and a toll-free telephone number (or statement that the charges can be reversed) to get warranty information; and
(f) information about any settlement procedures in place to resolve warranty complaints.

For products costing more than $10.00, federal law also requires that warranties be labelled "full" or "limited." If a product is sold with a "full" warranty, the seller must be prepared to repair the product within a reasonable period. If the product cannot be fixed, the seller must provide a replacement or full refund. Under the law, the seller cannot impose unreasonable conditions such as requiring the buyer to bring in the dishwasher to be fixed. Under a "limited" warranty, the seller must tell what will be paid for and for how long of a period.

Implied Warranties

A seller of a product may never make a written promise concerning their goods or services, but according to the law, that seller cannot escape making implied warranties. Certain implied warranties come into being just because a sale of goods is made. For example, in an ordinary sale, the seller implicitly warrants having a right to sell the merchandise and the passing of a clear title. In another example, if the seller displays a sample or model of a product, they may also be deemed to have made an implied warranty that the purchased merchandise is exactly the same as the sample or model.

A seller may also impliedly warrant the quality of goods sold, i.e., that they are of fair, average quality and will be fit for ordinary use. A seller is expected to provide goods that fit the buyer's purpose. Someone who buys a dog for purposes of showing and breeding expects the dog will be fit for that purpose. If the dog is later determined by a veterinarian not to be fit for show purposes, the seller of the dog will be held in breach of an implied warranty of "fitness for a particular purpose." In order to be held liable for such a breach of warranty, the seller must understand or anticipate the purpose for which the buyer is to use the goods being bought.

Damages for Breach of Warranty

A buyer who files a lawsuit for breach of warranty may be entitled to one of three types of damages:

(a) "actual" damages. This represents the difference between the price paid for the product and the value of the product received. If the product does not do what the seller promised or implied, it is not worth what the buyer paid for it. Accordingly, the buyer may be entitled to a partial refund of the difference between what he expected and what he actually received.
b) "incidental" damages. These are expenses caused by a defective product. They include repair costs, rental costs, and costs related to replacing the product, including the costs of searching for a replacement.
c) "consequential" damages. These are damages which a "reasonable seller" should expect the buyer will suffer as a consequence of the defective product. For example, if a part within a machine breaks which is covered by a warranty, and the owner of the machine can no longer produce his product, that owner may be entitled to recover from the manufacturer and/or seller of the product the lost business resulting from his inability to produce and sell his product.

If you are a buyer, you should ask the seller about his warranties on the product, and read any written material which contains warranty information. Many companies require that you send back a registration card before a warranty will apply. You should comply with all rules and regulations that the seller has established for making a claim for breach of warranty. Finally, keep all contracts and other documentation relating to the sale of the product in the event that you need to submit that information to a court.

Should you wish to speak with an attorney about a possible breach of warranty claim, please feel free to contact the lawyers at Belsky, Weinberg & Horowitz, L.L.C. for a free consultation.

For additional information, contact us for a free consultation with an experienced legal team.