Warranties can be a little tricky and sometimes confusing. They involve legal issues that even the most business savvy person can overlook. On the flip side, they make your products and services more attractive to consumers, and therefore can be great for business. So a good rule of thumb is to simply back up what you say, and if you can't, then don't say it.
There are two types of warranties? implied and expressed. Just about every purchase you make is covered by an implied warranty. Implied warranties are created through state laws, and each state has them. The most common type of implied warranty is a ?warranty of merchantability,? which means that the product should do what it's supposed to do. A coffee maker should make coffee, and a DVD player should play DVDs. Another type of implied warranty is a ?warranty of fitness for a particular purpose,? which means that if you purchased a product because the seller advised you that it is suitable for a particular use, you must be able to use it for that purpose. Basically, a seller who advises you to purchase a certain cooler because it can keep stuff cold for up to 24 hours warrants that it will do exactly that. If a product is marked ?as is,? then it is covered by neither an expressed nor an implied warranty.
Implied warranty coverage varies from state to state. Some states provide coverage for up to four years, others are shorter. Some states prohibit the sale of ?as is? products,? some do not. You'll have to check with a lawyer or your state?s consumer protection office to get the specifics. http://www.consumeraction.gov/state.shtml
An expressed warranty is basically a written warranty. Expressed warranties are not required by law, but they come with most major purchases. There are two types of expressed warranties ?full and limited. A full warranty must be granted for a specific length of time and it must cover the entire product? labor and parts. It also requires the manufacturer to make repairs at no charge in a reasonable length of time and cannot require the customer to jump through hoops to invoke the warranty. Limited warranties must be labeled as such and express in simple language exactly what is covered, and if necessary, what is not covered. Basically a manufacturer could offer to replace a defective part free of cost, while still charging for labor or requiring the consumer to ship the product to the service center, but that must be explicitly written out on the warranty.
There is one other type of warranty out there and that's an extended warranty. Extended warranties are offered above and beyond the manufacturer's warranty and must be purchased by the consumer. Deciding whether or not to offer an extended warranty depends entirely on the situation, some businesses will profit from them, some will not. Weigh all your options and do the math before choosing to offer an extended warranty.
Warranties are great for consumers, and statutes surrounding warranties are highly weighted in the consumers? favor, which means they can sometimes cause legal headaches for providers. The smart thing to do when dealing with warranties is to disclaim, disclaim, disclaim. Disclaim anything and everything, whenever and wherever possible. If you manufacture toasters, disclaim that sticking your fingers in the toaster while it is running can cause injury. If you produce popcorn, disclaim that sticking the kernels up your nose may cause them to get stuck there. I know these sound silly, and I hope that for most of you they're no-brainers, but if there?s the possibility that someone might do it and you could get in trouble for it, then disclaim it. It's recommended that you always contact a lawyer to aid you in writing warranties and disclaimers.
