Federal Warranty Protection

 

The Congress has passed laws that affect state warranty requirements, at least where consumer purchases are concerned. The Magnuson-Moss Act, enforced by the Federal Trade Commission, sets up minimal standards that must be met before the seller can claim in writing a "full" or "limited" warranty. To claim a "full" warranty the seller must:

* Agree to repair, replace, or refund the purchase price for functioning product.

* Promise to make repairs quickly and at no extra cost.

Guarantee a full refund if the repair efforts fail.

* Require the consumer only to report the defect to obtain relief under the warranty.

* Agree not to disclaim any implied warranties, though he may disclaim liability for consequential losses.

Any warranty that falls short of these requirements can be designated a "limited" warranty. A limited warranty, however, may not disclaim the implied warranties until a reasonable time has passed after the sale.

The Magnuson-Moss Act and the FTC have regulations covering the language and placement of consumer warranties with which you or your lawyer should be familiar. They can be found in the United States Code, Title 15, Chapter 51 (Sections 2301 and following) and the Code of Federal Regulations, Volume 16, Section 700. Where the federal law conflicts with a state act, the federal law controls.

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