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CONSUMER PRODUCT WARRANTIES

The State of California - State and Consumer Services Agency

LEGAL AFFAIRS - 400 R Street, Suite 3090 - Sacramento, CA 95814-6200

Legal Guide W-6

Full and Limited Warranties
Express and Implied Warranties
Disclosures, Disclaimers, Remedies

September 1990
(Revised, September 1994)

A product you've purchased or leased for personal, family or household purposes doesn't work the way it should. You can try kicking it soundly, yelling at it forcefully, pretending you don't notice its failings ... or even better, you can read its written warranty.

The written warranty spells out the warrantor's promises to fix or replace an item or part if it doesn't work properly. The law requires that written warranties be worded so as not to mislead a reasonable, average consumer about the protections the warranty provides. Warranties must be written in plain and readily understood language and must contain a good deal of important information.

The law helps you by requiring the warrantor to clearly and conspicuously state all the information that you should consider. Nevertheless, both good and bad warranties still exist, so you should shop around and compare written warranties carefully.

YOU CAN LOOK AT THEM WHILE YOU SHOP

The first time to read your written warranty is before you buy an item. Warranties on products costing more than $15 must be made available for you to read before you buy. Sellers can do this by displaying the warranty's text on or near the product, or by maintaining a binder containing copies of warranties for all the products sold. Also, be sure you actually receive the written warranty. Some retailers who sell
imported products at low cost do not provide the written warranties that normally accompany the products they sell.

IT WARRANTS YOUR ATTENTION

Almost all warranties will fail to include some assurances and protections that you would want to have. In selecting a product, you should look upon the warranty as one of its many characteristics -- like color, style, size or weight. The following information must be contained in the warranty:

The warrantor's name and mailing address. Who is protected by the warranty, including any limitations (for example, a warranty protecting only the first owner).
Precisely what parts, components, characteristics or properties the warranty covers, and what it excludes. What items or services the warranty will pay for; and those for which you must pay. When the warranty term begins (if other than the date of purchase). The warranty's duration (measured, for example, by time or mileage).
Whom to contact to have warranty service performed (including names, addresses and telephone numbers). Step-by-step instructions to follow to obtain service. Any expenses you may be required to pay. Virtually all written warranties include a promise to make any needed repairs. Rarely, however, does a warranty include a promise to pay for repairs or any other losses (although the general law of sales and product liability may confer such a right).

Some written warranties offer very little protection at all, and are only merchandising devices involving no real benefit to you. While the law prohibits a warrantor from making a "deceptive warranty," your best protection is to read and understand the warranty before you buy.

The written warranty must state any ways in which the warrantor seeks to limit your legal rights. It also must describe any limitation the warrantor has sought to place on your legal remedies. Most warranties, for instance, state that the warrantor is only responsible for repairs, and not for any related losses that may result from the product's defect.

The warranty must disclose information to help you obtain redress if the warrantor fails to honor its warranty. This information may include the availability of an arbitration program, and a statement that while the warranty gives you specific legal rights, you have other rights too.

You do not need to return an owner registration card, even if the warranty says you must. However, you always should keep a receipt showing the date of purchase to prove when the warranty period began. And it may be in your interest to register with the manufacturer even if registration is not legally required.

FULL WARRANTIES LIMITED WARRANTIES

The written warranty will be labeled either "full warranty" or "limited warranty." A full warranty must also state its duration; e.g., "Full Five-Year Warranty."

Most written warranties are limited warranties in which the warrantor has a great deal of flexibility in writing warranty terms. For example, a limited warranty may
cover parts, and not labor. Additionally, it may charge you for handling fees.

A product can carry more than one written warranty. The product can have a fully warranty on one part of it and a limited warranty on the rest.

Always remember: a limited warranty means careful, not everything's covered."

RIGHTS UNDER FULL WARRANTIES

If the product has a full warranty, federal law gives you certain minimum rights and remedies. The warrantor must rectify any defect, malfunction, or failure to measure up to the warranty within a reasonable time and without charge after receiving notice of a defect or malfunction.

If a defect, malfunction or failure to conform with the warranty occurs during the warranty period, the warrantor must either repair the product, replace it with another product that is identical or reasonably equivalent, or refund your money.

If the warrantor chooses to replace the defective product, it must pay all of the costs of removing and reinstalling a product which is useful only when installed (e.g., flooring). If the warrantor replaces a component part, the replacement and installation must be provided free of charge.

In general, a full warranty gives you a right to have an improperly functioning product repaired or replaced. While the warrantor may offer you a refund, you need
not accept it unless repair is not feasible or cannot be made within a reasonable time, and the warrantor cannot provide a satisfactory replacement.

On the other hand, a full warranty does not give you the right to force the warrantor to give you a refund, so long as the warrantor is willing to provide a defect-free
replacement.

If the warrantor can neither repair nor replace a defective product, the warrantor's only remaining option is to refund its purchase price. If the product is fundamentally defective -- i.e., it cannot be repaired after a reasonable number of attempts -- you have the choice of either a replacement or refund. You are not required to tolerate endless repairs. If you want a refund, the warrantor can require that you first pay off any loan on the item (except one made by the seller) before refunding the price. The amount refunded is the actual purchase price. If the warranty is a full warranty, depreciation cannot be deducted.

If you have a full warranty, you also have a right to be reimbursed for certain kinds of incidental expenses, but only if the expenses were incurred because the warrantor did not act promptly, or imposed an unreasonable (unfair or unnecessarily burdensome) requirement as a condition of providing a remedy.

The warrantor is not responsible for the defects or failures of a product cause by damage following the sale, or by unreasonable use, such as failure to provide reasonable and necessary maintenance. It is important, therefore, to read and carefully follow the warrantor's instructions on installation, operation and maintenance. If the warrantor claims that you or someone else has damaged, abused or misused the product, the warrantor should be asked to state in what ways it believes that the damage was done. The warrantor has the burden of proving any abuse, misuse or other post-sale damage.

Under federal law, you are entitled to all of the above rights, even if they are not specifically mentioned in the written warranty.

NOTICE: We attempt to make our legal guides accurate as of the date of publication, but they are only guidelines and not definitive statements of the law. Questions about the law's application to particular cases should be directed to a specialist.

Prepared by:

RICHARD A. ELBRECHT
Supervising Attorney
Legal Services Unit

Department Of Consumer Affairs
Post Office Box 310
Sacramento, CA 95802

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