A warranty is like a promise to a buyer that certain things are true (such as whether a product will work). This promise works as a contract between the seller and the buyer and outlines terms such as how, when and if the product can be returned, replaced, or repaired. If this “promise” is broken, the buyer can ask the seller for compensation. Typically, compensation includes product replacement or a refund. A warranty can be express (written in the contract) or implied (not explicitly written but understood to exist). Increasingly, consumer warranties contain provisions that require buyers to solve their problems through arbitration (supervised negotiation) before going to court. Consumers have the right to review warranty information before purchasing an item, however companies often provide warranty information on their websites or other places that are not easily accessible to consumers at the point of purchase. Manufacturers are not required to offer a warranty on their products.

Example:

Anthony bought a stereo with a warranty that stated that, in the event that the stereo stopped working because of a manufacturing defect, he could bring it back to be repaired or replaced. When it stopped working, he brought it back to the store. The store refused to fix or replace it because they felt that it stopped working because Anthony did not use it correctly. He tried to take the company to court but was told that the warranty required that he travel to a different state to solve the problem through arbitration. Anthony could not afford to travel to another state and therefore could not get his stereo repaired or replaced.

Sample – Electronics Purchase:

With respect to COMPANY branded Products, COMPANY makes no warranties except those stated in the COMPANY limited warranty cards included with the Products, or, in the case of optional extended warranties issued by COMPANY, such extended warranty documentation. With respect to third party (i,e,. non-COMPANY branded) Products, such Products are sold by COMPANY AS IS. However the third party manufacturer or supplier of these Products may offer its own warranties, and you agree to look solely to such manufacturer or supplier for any warranty related claims. COMPANY EXPRESSLY DISCLAIMS ALL OTHER WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING WITHOUT LIMITATION IMPLIED WARRANTIES OF MECHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE AND ANY IMPLIED WARRANTIES OF NON-INFRINGEMENT.