Types of Warranties
Three types of warranties are enforced under the Uniform Commercial Code (UCC) and products liability laws. They are:
- Express warranty - may include statements made during sales negotiations, those written in a sales contract, those stated on tags attached to the product or sample, and more. Express warranties can be established in three ways: (1) through the supplier's affirmation of fact to the purchaser about the goods, (2) through a description of the goods or services, or (3) through a sample or model, all of which are used in the process of sales negotiations or bargaining. An example of an express warranty is a statement like "These tires will last for 200,000 miles." Note that puffery, or statements like "these tires will last a lifetime," do not constitute an express warranty.
- Implied warranty of merchantability - requires that minimum standards of quality be met by the products (and their containers) or services. Products must be fit for the general purposes for which they are sold. A product must be what all labeling and seller statements say it is.
- Implied warranty of fitness - is made when a seller selects goods for a particular purpose for the consumer.
For example, if a consumer asks a tire outfitter to recommend tires for the snow and they select tires are not safe or appropriate for the snow, a breech of implied warranty of fitness exists.
Breech of extended warranty is a common culprit in warranty fraud. Warranty companies know that warranties are often the most confusing and most profitable product they can sell. For this reason, it is important to be a smart consumer when it comes to extended warranties. Please see our section about tips on extended warranties to learn how to protect yourself from warranty fraud.
It is important to remember that extended warranties are not necessarily insurance plans; often they are service contracts existing between the warranty company and the purchaser. While a primary warranty protects against defects and false claims made at the point of sale or present from the time of sale to a particular point in time, extended warranties continue coverage for defects or problems that occur after the point of purchase or the expiration of a primary warranty.
A manufacturer, dealer, or a third party may offer extended warranties for such products as vehicles, household appliances, home electronic systems, and much more. It is very important to be a savvy consumer to avoid becoming a casualty of warranty fraud.
If you have been ripped off by warranty fraud, you have a way to fight back and make that unscrupulous company pay for their deception. Please contact us to speak with a qualified and experienced consumer fraud attorney who can evaluate your claim and determine your eligibility for a consumer fraud class action lawsuit.