Magnuson Moss Warranty Act (MMWA (does not require (The Act does not…
Magnuson Moss Warranty Act
2 kinds of warranties
Implied warranty of merchantability / fitness for particular purposes
In order to disclaim implied warranties, you must inform consumers in a conspicuous manner; specifically indicate that you do not warrant "merchantability,"
State statutes of limitations for breach of either an express or an implied warranty are generally four years from date of purchase.
the law in most states allows you to disclaim implied warranties; some states does not allow you to disclaim
Federal law prohibits you from disclaiming implied warranties on any consumer product if you offer a written warranty for that product
Selling the product "as is" does not eliminate the product liability
made by merchants voluterially
Express warranties can take a variety of forms, ranging from advertising claims to formal certificates.
Can be made either orally or in writing; Only written warranties on consumer products are covered by the Magnuson-Moss Warranty Act.
the Rules the Federal Trade Commission (FTC) adopted under the Act
the Rule on Disclosure of Written Consumer Product Warranty Terms and Conditions (the Disclosure Rule),
the Rule on Pre-Sale Availability of Written Warranty Terms (the Pre-Sale Availability Rule),
and the Rule on Informal Dispute Settlement Procedures (the Dispute Resolution Rule).
FTC's Warranty Advertising Guides
The Act enables consumers to comparison shop for warranties, encourages warranty competition.
Passed in 1975, a federal law
does not require
The Act does not compel you to give a written warranty.
Does not apply to oral warranty
Does not apply to services
Does not apply to warranties on products sold for resale or for commercial purposes. The Act covers only warranties on consumer products.
As a warrantor, you must designate, or title, your written warranty as either "full" or "limited."
Full: meets the 5 requirements, otherwise, "Limited"
As a warrantor, you must state certain specified information about the coverage of your warranty in a single, clear, and easy-to-read document.
As a warrantor or a seller, you must ensure that warranties are available where your warranted consumer products are sold so that consumers can read them before buying.
Titilling requirement applies to products valued more than $10; disclosure and pre-sales requirements valued more than $15.
does not allow
prohibits anyone who offers a written warranty from disclaiming or modifying implied warranties.
One exception: If you offer a "limited" written warranty, the law allows you to include a provision that restricts the duration of implied warranties to the duration of your limited warranty.
If you are a seller of a consumer product and do not yourself warrant the product in writing, but the product has a written warranty (for example, a manufacturer’s warranty), you can disclaim your implied warranties in most states.
"tie-in sales" provisions
deceptive or misleading warranty terms.
how to advertise a warranty that is covered by the Pre-Sale Availability Rule
how to advertise a satisfaction guarantee;
how to advertise a lifetime guarantee or warranty.
Easier for consumers to sue; can be awarded court cost and attorney's fee.
encourages companies to use a less formal, and therefore less costly, alternative to legal proceedings.