Warranties Warranty= promise or guarantee made by the seller about the quality of goods which details what the seller will do to remedy the situation if a problem with the goods occurs All appliances should have a warranty so if they break, the manufacturer will replace them Important to find out HOW LONG the warranty lasts (30 days, 5 years, etc.) Beware of disclaimers that try to avoid warranty obligations: “Sold as is”/ “All sales final”

Types of Warranties Express Warranties: direct statement of the quality or performance of product that becomes a part of the bargain between buyer and seller. Expressed in writing, orally or through a demonstration Must be a statement of fact (not opinion or exaggeration) “It’s the best refrigerator on the market” (No) “All parts guaranteed for 10 years or your money back.” (Yes) Includes Time Limit (30 days, 1 year, 5 years…) Includes: Full warranty: fixed or replaced for free Limited warranty: covers some defects in product, but not all

Types of Warranties Implied: unwritten promise that product will perform as it is supposed to Three Types: Warranty of merchantability: Promise that product is of at least average quality Does not apply to “as is” or “final” sale Does not apply to most casual sales between friends or family Warranty of fitness for a particular purpose: Seller promise that product fits the purpose described during the sale Warranty of Title: Sellers promise that they own the product being sold

Warranty or Not? James buys a used car from a dealership. As he is driving home, the car breaks down. Warranty? Yes?- Implied warranty of merchantability No? …. IF CAR is sold “AS IS” according to the contract