In contract law, a warranty has various meanings but generally means a guarantee or promise which provides by one party to the other party that specific facts or conditions are true or will happen. This factual guarantee may be enforced regardless of materiality which allows for a legal remedy if that promise is not true or followed.
A warranty, also commonly known as a guarantee, is a statement made by the owner, manufacturer, or seller of a product and service, regarding the condition of the product or service. It’s a promise that the product or service will stand the test of a particular time period and, should any problems arise within that time, the issuer would rectify those. A warranty can be seen differently from a business, legal, or ethical perspective. It is of many kinds. The warranty may be expressed or implied, verbally or written, full or limited, or any other form agreed upon by the seller and the customer.
According to the Federal Trade Commission (FTC), the primary arbitration institution when it comes to warranty law, a warranty on a product and service must have the following elements:
The laws of various states recognize the implication of a guarantee on the quality and integrity of the product or service during the financial transaction. Therefore, the implied warranty is an agreement between the manufacturer or the seller, and the buyer or consumer; which is not expressly written or spoken, but rather implied.
Express warranties are explicit and particular promises made by the guarantor to the consumer regarding the product or services. Express warranties are usually made voluntarily, rather than under compulsion from the state law. They can be oral or written, although the Magnuson-Moss Warranty Act only covers written warranties.
Manufacturers or sellers can choose to apply certain limitations on the conditions under which the consumers can request the solution to the problems. The limitations on a warranty can be on the time period for which the warranty is valid, or the circumstances surrounding the damage of the product. Often, manufacturers can choose to offer full or limited warranties.
A full warranty dictates the consumers would receive free repairs, and that they have no responsibility other than to report the damage or defect to the manufacturer. If the repair is unsatisfactory, the customer receives a full refund.
A limited warranty, on the other hand, imposes certain limits on the liability of the guarantor in case of a problem. For instance, the offer to perform free repairs can only be for a limited period of time.
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