WARRANTIESHOW EXCITED ARE WE!?!

WARRANTIESWhat is a warranty?What is the last thing you bought with a warranty?What is usually included in a warranty?Are they free? If not, what is usually a cost for them?

What is a warranty?Promise made by seller about the quality or performance of specific goods of sale.

Breach: Seller does not live up to the guarantees

Express Warranty: Statement about the quality of the product made by the seller

Ex. “This engine won’t need any new parts for at least 3 years.”

Puffiing: A seller’s exaggeration “This snuggie will be warmer than anything you have ever owned.”

Magnuson-Moss Warranty Act: Written warranties must:(1)Disclose all terms in a

single document(2)Be stated in simple

language(3)Be made available

before the sale(4)Explain what is

included

Implied Warranty: Unwritten promise that a product will perform how it is expected (only by bona fide sellers)1. Warrant of merchantability:

2. Warranty of fitness:

3. Warranty of title:

Disclaimer: an attempt to limit the seller’s responsibilities should anything go wrong with a product

IS A WARRANTY CREATED IN ANY OF THE FOLLOWING SITUATIONS? WHAT TYPE AND HAS IT BEEN BROKEN?

Carlos sells Nick his used car and it breaks. The repair of the car is greater than the cost.

Alexa sells Selin a stolen diamond ring after telling her it was a gift from an ex boyfriend.

Isaiah sells Siera a camera by telling her it will last for 8 years. It breaks after 8 months

Will buys a new bedframe from the store. One of the legs falls off 2 weeks after delivery. Where will he sleep?

Ashley orders a hardcover book from Borders for $12.95. When she receives it, it is paperback.