1. 12/07/09 BR- If you buy something from a store and take it home and it doesn’t work, what do you do? Today: Warranties - Legal Protections for the things you buy If you did not find an apartment on Thursday, finish that up today!

2. Vocabulary C-2 (no you don’t have to look these up but these are concepts we’ll cover in this section) Warranty, express warranty, puffing, full warranty, limited warranty, implied warranty, warranty of merchantability, warranty of fitness for a particular purpose, warranty of title, disclaimer,

3. Warranty- a promise made by a seller concerning quality or performance. 1. An expressed warranty is a statement (written, oral, or by demonstration) that clearly defines what a product that is being bought will do. It is always best to get a written warranty. Obvious exaggeration or seller’s opinion ARE NOT parts of a warranty. This is known as puffing.

4. Magnuson-Moss Warranty Act (1975) (full warranty – covers everything) Full, written warranties must: 1.Disclose all essential terms and conditions in one document 2. Be stated in easy-to-read language 3. Be made available to the consumer before they purchase something

5. Magnuson-Moss Warranty Act (1975) (full warranty – covers everything) 4.A defective product will be “replaced” for free (no additional charges.) 5.Consumer will not suffer undue burden 6.Product will be replaced within a reasonable time 7.If replacement is not possible a full refund is warranted 8.Warranty applies to any owners within the 1 st warranty period

6. Limited Warranties Limited warranties are anything that covers only certain parts or conditions of the product

7. Implied Warranties (3): Unwritten, minimum standards of a product sold by dealers that are guaranteed by law. 1. Warranty of Merchantability – unwritten promise that the product will do what the item is sols as. Saw will cut, freezer will freeze, radio will play. DOES NOT APPLY TO ITEMS SOLD “As Is.”

8. Implied Warranties - 2. Warranty of Fitness for a Particular Purpose – the consumer tells the seller that they require certain qualities or performance of a product before it is purchased.

9. Implied Warranties - 3. Warranty of Title – Seller’s promise that they own the item being sold and therefore has a right to transfer title (ownership.)

10. Disclaimers- These are ways for the seller to limit their responsibilities to the warranty. “As Is” or “this machine should be operated by persons under 150 pounds.” Assignment: Problem Set 23.1

11. Consumer Ed Unit Assessment - Create A “Smart Consumer Pamphlet”  In this assignment you will create a pamphlet that you could copy and give out to people that would give them good advice on how to be a good consumer.  Due December 18 (NO EXCEPTIONS!)  100 Points

12. Pamphlet- Topics  Need vs Want and the 3 Needs  Warranties  Deceptive Business Practices  Credit  Being a Smart Consumer  Cars  Rent and Housing  Investing

13. Pamphlet - Details  May be organized horizontally or vertically  Must have 5 topics (1 per page)  Each topic must contain 5 points of advice  Each topic page should have a picture or an illustration  Advice should be written in language any person could understand (summarize, use your own words, don’t just copy from the book)