possible terms and conditions that the Federal Trade Commission may require to be included in a written warranty. warrantor's name and address; all those benefiting under the warranty; the products or parts covered; the parts not covered; a statement by the warrantor of what actions they will take in the event of a defect, at whose expense, and for how long; a statement of the consumer's responsibility; exceptions and exclusions to the warranty; the procedure which the consumer should follow to obtain warranty service; information regarding the availability of any informal dispute settlement procedure (if there is one); a description of the legal remedies available to the consumer; and time for performance under the warranty. The written warranty must be made available to the customer prior to purchase. This does not mean you have to actually provide it to the customer but only that you make it available. For example, a written warranty sticker attached to the inside of a refrigerator is satisfactory. If your written warranty covers an item costing more than $10.00, then you must clearly title your warranty as either or "limited warranty." A full warranty meets the federal minimum standards first and all subsequent owners during the warranty period. It is provided free of charge. The customer cannot be charged for costs of returning, removing or reinstalling. If the warrantor is unable to repair after a reasonable number of attempts (interpreted by some courts as two to three attempts), the customer is entitled to either a replacement or refund. There is no requirement that the customer must do something, such as return the warranty registration card, to obtain warranty service. A limited warranty does not meet at least one of the federal minimum standards listed at 15 U.S.C.A. § 2304(a). If the warrantor breaches a limited warranty, the customer may or may not be entitled to a replacement or refund. The MMWA does not specifically provide for remedies for a limited warranty. Rather, the remedies are found in each state's version of the U.C.C. One feature of the MMWA, and the one of most concern to businesses involved in breach of warranty litigation, is its fee shifting provision whereby successful claimants may be awarded legal fees and costs. warranty, then you may limit the duration of any implied warranties to the duration of the limited written warranty. An example of this is a vehicle manufacturer often times will limit the implied warranties to the 3 years/36,000-mile limited written warranty. The limitation must be clear and prominently displayed. If you are providing a full written warranty, you cannot limit, disclaim or modify the implied warranties. It is also possible to have a hybrid warranty clearly labeled. As the saying, "a stitch in time saves nine" goes, if you currently offer express warranties with your product or are contemplating offering a warranty to gain that competitive edge, now is the time to check if your warranty is up to par with your state's U.C.C. and the MMWA. In our increasingly litigious society, taking such preventive measures is a routine necessity. 2 15 U.S.C.A. § 2302 3 15 U.S.C.A. § 2304(a) lists the Federal minimum 5 15 U.S.C.A. § 2305. |