Introduction
Protecting customers’ rights and ensuring the highest quality of products are critical requirements for most manufacturers and vendors in contemporary markets. Hence, companies use warranties to guarantee that the sold items adhere to regulatory quality standards and do not have any flaws. Understanding different types of contracts is crucial for all customers who wish to learn about their rights and options in case of manufacturing defects.
Warranty Overview
In the broad sense, a warranty is a statement that ensures that sold products adhere to high-quality standards. In most cases, it is a document with specific terms and conditions listed in the sales contract (“Warranties and sales,” 2019). If the sold item violates these requirements, the vendor must typically provide a replacement or repair service. Hence, a warranty guarantees that customers will receive high-quality products with no defects.
Moreover, these contracts incentivize companies to have strict quality control processes and identify any potential flaws during manufacturing. Warranties cover a large variety of products and services, ranging from electric devices to real estate (“Warranties and sales,” 2019). In summary, they play a critical role in regulating sales, protecting customers’ rights, and incentivizing companies to manufacture high-quality goods.
Express Warranty
There are two primary types of warranties in contemporary markets – express and implied. The former is a specific guarantee, explicitly mentioned verbally or in a written form, that a product has certain functions and capabilities (“Express warranty,” 2023). A simple example of an express warranty is when a company promises complete functionality of an electric device within one year.
However, suppose this product breaks after two months. In that case, the customer who bought it can request a refund, replacement, or repair service as per the express warranty since the vendor violated the contract. These agreements are always specific and explicit, which are the major elements of an express warranty.
While vendors frequently establish their own conditions for express warranties, there are some additional regulations for selling expensive products. For instance, in the United States, the 1975 Magnuson-Moss Warranty Act states that every item costing more than $15 should be covered with a written warranty (“Express warranty,” 2023). It also provides additional guidelines regarding various specificities of customer rights, ensuring that companies act in good faith. Ultimately, express warranties are critical in contemporary business and sales regulation.
Implied Warranty
An implied warranty is a non-specific agreement that is not stated in an explicit written manner. For instance, when a customer buys pizza, they expect that it is edible and will not lead to food poisoning. Although the vendor might not explicitly mention this fact, it is to be expected both by customers and food regulating companies (“Warranties and sales,” 2019). In many cases, implied warranties have weaker legal power than express contracts due to differences in customers’ and vendors’ expectations. However, they still provide a certain degree of protection, and a customer who got poisoned by food can be subject to a refund or compensation due to implied warranties and federal guidelines.
Conclusion
Express and implied warranties are important for controlling transactions and upholding buyers’ rights. Although the two types have different scopes of protection, they are both highly useful in ensuring that companies manufacture and sell items in good faith. In summary, customers should thoroughly understand express and implied warranties to know their rights and demand compensation in case of defects and flaws in the purchased products.
References
Express warranty. (2023). Web.
Warranties and sales contracts. (2019). Web.