Warranty (Goods) Definition
A warranty is an assurance or guarantee that a manufacturer or a seller of a product would repair or change the product purchased by a buyer if it developed fault before the specified elapses. It is a promise or guarantee by the manufacturer which is often put in writing.
A warranty is also an agreement containing certain terms that the manufacturer must adopt if the product does not function effectively or gets damaged before the agreed time.
Here are the key points to note about warranties;
- Terms of warranties vary from company to company.
- There is a limit to how a warranty can be effected, there are often criteria rolled out before a warranty can be claimed.
- There are some reasons that can make a warranty to be denied, such as misuse of product, alterations and modifications parts of the product and others. .
A Little More on What is a Warranty
There are phrases in a warranty that limit the repair that a manufacturer would do on a product if it develops fault before the ex[ected time. It also states the situations for which the manufacturer becomes responsible for the rectification of the problem. Usually, defects in workmanship or manufacturing of the product is given as a condition for the problem to be fixed by the manufacturer or the product exchanged. Faults that ensue out of inappropriate use of the product are not always covered in a warranty. For household appliances and products, a warranty only lasts for a year after the time of purchase. A warranty can however have a longer duration depending on the manufacturer and terms and conditions of the product.
Reasons Why a Warranty Could Be Denied
Warranty is applicable to products such as mobile devices, appliances and few other items if they are purchased as new, and not already used products purchased from a third party. Generally, a warranty is admissible if no alterations have been made to the item after it is purchased. There are certain reasons why a warranty can be denied, if the product has been modified by the buyer or some parts of the item changed, the warranty can be denied. For example, a buyer that buys a blender and then changes the blade of the blender and takes it back to the manufacturer to claim warranty on the blender would be denied outrightly.
Different companies have unique ways of addressing warranty issues but most importantly, if the product purchased is still intact without any of its parts changed or missing, the warranty holds. A warranty can be denied if the user has misused the product, for instance, using an electric blender when the user is aware that there is a high voltage that can damage the product. Also, using a product in a hostile condition leading to its damage can also cause a warranty to be denied.
Furthermore, the terms of a warranty vary across different companies, while some agree to repair the damaged product, some offer replacement for the product depending on the severity of the damage and cause of damage.
References for “Warranty”
- https://www.investopedia.com › Business › Business Essentials
Academic research for “Warranty”
A theory of the consumer product warranty, Priest, G. L. (1980). A theory of the consumer product warranty. Yale LJ, 90, 1297.
Warranty and other extrinsic cue effects on consumers’ risk perceptions, Shimp, T. A., & Bearden, W. O. (1982). Warranty and other extrinsic cue effects on consumers’ risk perceptions. Journal of Consumer research, 9(1), 38-46.
New product warranty: A literature review, Murthy, D. N. P., & Djamaludin, I. (2002). New product warranty: A literature review. International Journal of Production Economics, 79(3), 231-260.
Product warranty management—I: A taxonomy for warranty policies, Blischke, W. R., & Murthy, D. N. P. (1992). Product warranty management—I: A taxonomy for warranty policies. European journal of operational research, 62(2), 127-148.
The implied warranty of merchantable quality, Prosser, W. L. (1943). The implied warranty of merchantable quality. Can. B. Rev., 21, 446.
Determination of warranty reserves, Menke, W. W. (1969). Determination of warranty reserves. Management Science, 15(10), B-542.
[PDF] Warranty cost analysis for second-hand products, Chattopadhyay, G. N., & Murthy, D. N. P. (2000). Warranty cost analysis for second-hand products. Mathematical and Computer Modelling, 31(10-12), 81-88.
Optimal reliability, warranty and price for new products, Huang, H. Z., Liu, Z. J., & Murthy, D. N. P. (2007). Optimal reliability, warranty and price for new products. Iie Transactions, 39(8), 819-827.
Methods for the analysis and prediction of warranty claims, Kalbfleisch, J. D., Lawless, J. F., & Robinson, J. A. (1991). Methods for the analysis and prediction of warranty claims. Technometrics, 33(3), 273-285.
Unmasking the Test for Design Defect: From Negligence [to Warranty] to Strict Liability to Negligence, Birnbaum, S. L. (1980). Unmasking the Test for Design Defect: From Negligence [to Warranty] to Strict Liability to Negligence. Vand. L. Rev., 33, 593.