sophisticated businesses to small family owned businesses, entrepreneurs and individuals. A large part of her practice is in the area of product warranty litigation, and she is well versed in the Uniform Commercial Code, Magnuson-Moss Warranty Improvement Act, state consumer protection laws and Lemon Law statutes. 20 Brace Road, 4th Floor Cherry Hill, New Jersey 08034 856.409.5295 Phone 856.354.0766 Fax cchung@earpcohn.com www.earpcohn.com generally is a promise that what you are selling is of a particular quality and is being sold without defect. An express (written or oral) warranty can give you a competitive edge. It can be used to improve your company's reputation and brand, build customer confidence or promote sales of a new product. Warranties are common place and are provided or implied with small and large purchases. This article aims to shed light on the oftentimes confusing world of warranties. Warranties are of two types: express and implied. Implied warranties are unwritten and are implied with the sale or lease of the product. It is a promise the product will do what it is meant to do. There are two types of implied warranties: the implied warranty of merchantability and the implied warranty of fitness for a particular purpose. The implied warranty of merchantability is a promise that the product reasonably expectations. For example, the implied warranty of merchantability of a car is it will turn on and run, a refrigerator will keep food cold, a lawnmower will cut grass, and a hair dryer will dry hair. The implied warranty of fitness for a particular purpose is more specific. It is a promise that the thing you are selling will conform to a particular purpose versus an ordinary purpose. An example is shoes purchased for mountain climbing versus shoes for walking. Implied warranties are governed by each state's version of the Uniform Commercial Code ("U.C.C."). Express warranties can be oral or written. Our focus here is on written warranties. Written warranties are governed by state laws and the Magnusson-Moss Warranty Act, codified at 15 U.S.C.A. 2301 to 2312 ("MMWA"), a federal statute passed in 1975 to protect consumers and to promote competition. There is no requirement that you provide MMWA should be your guide. The MMWA the sale of a consumer product, which relates to the nature of the material or workmanship of that product, and which promises that such material or workmanship is defect free or will meet a specified level of performance over a period of time. A writing provided in connection with the sale of a consumer product by which the seller promises it will refund, repair, replace or take other remedial action if the product fails to meet the stated specification also qualifies as a "written warranty." There are two types of written warranties: full warranty and limited warranty. If your written warranty qualifies as a "written warranty" under the MMWA and it covers an item costing more than $5.00, then the contents of the warranty must be in a single document, in clear, easy to read, and easily understandable language. It must be void of deceptive and misleading terms. The terms must be fully and conspicuously disclosed. |