The Truth About Warranties By Kevin Crenshaw, Esq.

During the holiday season be ever mindful of your consumer rights related to warranties. When you make a major purchase, the manufacturer or seller makes an important promise to stand behind its product. It's called a warranty. It is a statement about the integrity of the product and about the seller or manufacturer's commitment to correct problems when your product fails. State and federal laws recognize two basic kinds of warranties -- implied warranties and express warranties.

Implied Warranties
Implied warranties are unspoken, unwritten promises created by state law. Implied warranties are based upon the common law principle of "fair value for money spent." There are two types of implied warranties that occur in consumer product transaction -- the implied warranty of merchantability and the implied warranty of fitness for a particular purpose.

Implied Warranty of Merchantability
The implied warranty of merchantability is a merchant's basic promise that the goods sold will do what they are supposed to do and that there is nothing significantly wrong with them. In other words, it is an implied promise that the goods are fit to be sold. Alabama law says that a merchant makes this promise automatically every time he sells a product for which he is in the business to sell. For example, if an appliance retailer sells a refrigerator, the seller promises that the refrigerator is in proper condition for sale because it will do what refrigerators are supposed to do-preserve foods and beverages at controlled temperatures. If the refrigerator does not cool or freeze as instructed, or if it cools without proper temperature control, then the refrigerator is not fit for sale as an refrigerator, and the seller's implied warranty of merchantability would be breached. In such a case, the law requires the seller to provide a remedy so that the buyer gets a working refrigerator.

Implied Warranty of Fitness
The implied warranty of fitness for a particular purpose is a promise that the law says the seller makes when a customer relies on his advice that a product can be used for some specific purpose. For example, suppose a customer asks an appliance seller for a clothes washer that can handle 15 pounds of laundry at a time. If the seller recommends a particular model and the customer buys that model on the strength of the seller's recommendation, the law says that the seller has made a warranty of fitness for a particular purpose. If the model recommended proves unable to handle 15-pound loads, even though it may effectively wash 10-pound loads, the seller's warranty of fitness for a particular purpose is breached.

Implied warranties are promises about the condition of products at the time they are sold, but they do not assure that a product will last for any specific length of time. (The normal durability of a product is just one aspect of a product's merchantability or its fitness for a particular purpose.) Nor does Alabama law say that everything that can possibly go wrong with a product falls within the scope of implied warranties. Implied warranties do not cover problems such as those caused by abuse, misuse, ordinary wear, failure to follow directions, or improper maintenance.

Express Warranties
An express warranty is a statement that specifically makes a guarantee about goods or services. An expression of opinion is not an express warranty. If the seller makes a statement to the buyer relating to goods about which the buyer is uninformed, that statement is probably an express warranty. On the other hand, if the seller merely expresses a judgment about something on which each party would be expected to have an opinion, no express warranty is given.

Express warranties, unlike implied warranties, are not "read into" a consumer's sales contract by state law; rather, a retailer or manufacturer explicitly offers these warranties to its customers in the course of a sales transaction. An express warranty can be made either orally or in writing. Governed by federal law, the Magnnuson-Moss Warranty Act, governs only written, expressed warranties. That is, it requires that warranties be available for you to read before you buy. As an informed consumer, compare the scope of warranty coverage just as you compare the style, price and other characteristics of products. Express warranties can take a variety of forms ranging from advertising claims to formal certificates.

Written Warranties
Although not required by law, written warranties come with most major purchases. When comparing written warranties, keep the following in mind:

• Read the warranty to determine when it begins and when it expires, as well as any conditions that may void coverage.
• Verify whether the seller or the manufacturer provides you with warranty service.
• Before purchasing the product, know whether the company will repair the item, replace it or refund your money.
• Check to see if any parts of the product or types of repair problems are excluded from coverage. That is, some warranties require you to pay for labor charges. Also, look for conditions that could prove expensive or inconvenient, such as a requirement that you ship a heavy object to a factory for service, or that you return the item in the original carton.
• Many warranties don't cover damages caused by the product, or your time and expense in getting the damage repaired. For example, if your freezer breaks and the food spoils, the company will not pay for the lost food.
• Some warranties provide coverage only if you maintain or use the product as directed. For example, a warranty may cover only personal uses--as opposed to business uses--of the product. Make sure the warranty will meet your needs.

Protect Yourself
To minimize warranty problems, follow these steps:

• Read the warranty before you buy. Understand exactly what protection the warranty gives you.
• Consider the reputation of the company offering the warranty. If you're unfamiliar with the company, ask your local or Alabama's state consumer protection office or county Better Business Bureau if they have any complaints against the company. A warranty is only as good as the company that stands behind it.
• Always save your receipt and file it with the warranty. You may need it to document the date of your purchase or prove that you're the original owner in the case of a nontransferable warranty.
• Perform required maintenance and inspections. Conduct routine maintenance or inspections as required.
• Use the product according to the manufacturer's instructions. Abuse or misuse may void your warranty coverage.

Exercise Your Rights
Follow these steps if you have problems with a product or with getting warranty service.

• Read your product instructions and warranty carefully. Don't expect features or performance that your product wasn't designed for or assume warranty coverage that was never promised in writing. A warranty doesn't mean that you'll automatically get a refund if the product is defective -- the company may be entitled to try to fix it first. On the other hand, if you reported a defect to the company during the warranty period and the product wasn't fixed properly, the company must correct the problem, even if your warranty expires before the product is fixed.
• Try to resolve the problem with the retailer. If you can't, write to the manufacturer. Your warranty should list the company's mailing address. Send all letters by certified mail, return receipt requested, and keep copies.
• Contact your state or local consumer protection office. They can help you if you can't resolve the situation with the seller or manufacturer.
• Research dispute resolution programs that try to informally settle any disagreements between you and the company. Your local consumer protection office can suggest organizations to contact. Also, check your warranty; it may require dispute resolution procedures before going to court.
• Consider small claims court. If your dispute involves a small amount (for example, between $1.00 and $10,000), you can usually file a lawsuit in small claims civil court. The costs are relatively low, procedures are simple and lawyers usually aren't needed. The clerk of the small claims court can tell you how to file your lawsuit and that court's dollar limits.
• If all else fails, you may want to consider a lawsuit. You can sue for damages or any other type of relief the court awards, including legal fees. A lawyer can advise you how to proceed.