What is Express Warranty?
283 reads · Last updated: December 5, 2024
An express warranty is an agreement by a seller to provide repairs or a replacement for a faulty product, component, or service within a specified time period after it was purchased. Buyers rely on these promises or guarantees and sometimes purchase items because of them.
Definition
An express warranty is an agreement where the seller agrees to repair or replace defective products, parts, or services within a specified period after purchase. Buyers rely on these promises or guarantees, sometimes purchasing goods because of them.
Origin
The concept of express warranties originated in the early stages of commercial transactions when merchants began offering explicit quality assurances to make their products more appealing. Over time, especially in the 20th century, express warranties became a crucial part of consumer protection laws, providing consumers with more security when purchasing goods.
Categories and Features
Express warranties can be categorized into written and oral warranties. Written warranties are typically found in contracts or product manuals and are legally binding. Oral warranties are given through verbal promises, which, although not as strong legally as written warranties, can still serve as a basis for consumer rights. The features of express warranties include clarity, time limitations, and clearly defined responsibilities.
Case Studies
A typical case is Apple's limited warranty service for its products. Apple's express warranty usually covers any manufacturing defects within one year of purchase, allowing consumers to receive free repair or replacement services during this period. Another example is the warranty services provided by car manufacturers, such as Toyota's three-year or 36,000-mile warranty for new cars, which is an express warranty ensuring that any vehicle issues within this period are addressed.
Common Issues
Investors might encounter issues such as misunderstanding warranty terms, like assuming all damages are covered. Additionally, consumers often overlook the time limitations of warranties, discovering problems only after the warranty period has expired. To avoid these issues, consumers should carefully read warranty terms and ask questions at the time of purchase.
