There are a variety of warranties that are supported by law. However, those warranties are commonly separated into two categories. Those two categories are express warranties and implied warranties. This paper will go into detail about distinguishing between the two types of warranties.
Express Warranty
Express warranties can be either oral or written. According to this week’s lecture hall, “express warranties were created by affirmation of fact or promise of performance.” This warranty guarantees that the product or service that you are purchasing will be of a certain quality or at a certain standard. With the express warranty, if the product or service is not of the quality that the manufacturer stated, the manufacturer is required to either
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The problem with oral warranties is that it is very difficult to prove. This becomes a battle of “he-said, she-said”.
There are times when express warranties are written but do not take the form of a typical written warranty. One example of this could be warranties that are printed on the packaging of light bulbs. If you notice that on most light bulb packaging, the manufacturer will state “lasts 15,000 hours”. Even though the manufacturer never stated that this was a guarantee, it is still an express warranty because the manufacturer made the claim.
There are no laws that state that you must receive an express warranty. Express warranties will come from the seller or will be included in your contract with the manufacturer. There are times when an express warranty can be included in a commercial or on a sign located at a store, such as, "all dresses 100% silk". Advertisements are used to lure consumers into buying certain products. Therefore, the guarantees that are made in the advertisements must live up to the
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Implied warranty of merchantability is a guarantee that the product will work as it should. For example, if you purchase a vacuum cleaner and it does not perform as it should, such as cleaning an average floor, will constitute a breach of the implied warranty of merchantability. Merchantable, as defined by federal law, states that the following benchmark marks must be met:
• The product must conform to industry standards.
• The product must be fit for ordinary use, even if the consumer bought it to use otherwise
• The product must be the same in terms of quality and quantity, as stated in the contract.
• The product must be labeled and wrapped as stated in the contract.
• The product must meet the specifics of the package and labels, even if it is not stated in the contract.
Used goods are also covered by implied warranties. However, some states have laws that will allow retailers to negate the implied warranty by stating "sold as is." This is very relevant in purchasing a used car from a private owner. The owner can state that the car is being sold “as is”, which means that once you purchase the car you cannot return it to the owner for a
Whether oral or written, the contract must manifest a mutual intent to be bound expressed in a manner capable of being understood, and include a definite offer, unconditional acceptance and consideration.” (Express Contract 2016) The above definition is a much clearer explanation with key elements outlined; 1. mutual intent, 2, expressed in a manner capable of being understood, 3. definite offer, 4. unconditional acceptance and 5. Consideration.
The difference between an express contract and an implied in fact contract is the manner in which assent is manifested.
...is not in writing, the contract is still enforceable because the standard purchase order contains the required elements. Bill’s oral agreement serves as authorization.
The Australian Consumer Law (ACL) was established to protect consumers in any legal trading activities in Australia. A set of guarantees has also been introduced for those consumers who are acquiring goods and services from Australian suppliers, importers or manufacturers. The guarantees are intended to ensure that consumers will receive the goods or services they have paid for. If they have problems with the products and services they bought, they are entitled for remedies, such as repair, replacement, and refund.
Quasi-contracts are sometimes called implied-in-law contracts, but they are not actually contracts. Rather, in order to prevent one party from being unjustly enriched at the expense of another, the courts impose contractual obligations on one of the parties as if that party had entered into a contract. This case would not reflect a quasi-contract as this would focus more if intent, offer and acceptance was not established verbally or written. In this case study there was a verbal agreement.
Legal Studies Essay Joey Agerholm Exclusion clauses determine the liability of something that might go wrong within a contract. They are used by sellers as an attempt to avoid or limit their liability. The seller has the advantage over the buyer who must agree to the clauses to purchase the product/service. Because of the buyers disadvantage the court takes such cases, involving exclusion clauses, very seriously, and the content of the clauses are carefully interpreted. With the current Trade Practises Act and the Fair Trading Act the standard form of business contract is adequate and effective in protecting the buyer. The Trade Practise Act is the most effective legislation for the protection of the consumer. It implies to the following situations:- - “A promise by the seller that the buyer will become the owner” If a car dealer breaks a promise or part of a contract, for example that he has the right to sell a car, and the car is stolen then although the buyer will have to give the car back he/she will get her money back. - “ A promise by the seller that goods will fit the description supplied by the seller” In this case the buyer is protected if the seller makes a promise, which is a condition of the contract, describing the product, and when the buyer receives the product, it does not match the description. - “ A promise where the seller is made aware of the purpose for which the goods are required, that the goods will be reasonably fit for that purpose” This condition is implied when the buyer makes the purpose of the goods needed known to the seller, and the buyer then relies on the seller’s judgement in providing the correct product. For example it would not be reasonable if you made the seller aware that you wished to purchase something suitable for mowing the average suburban backyard and you were sold a tractor. - “A Promise that goods are of merchantable quality” According to this act a good is considered to be merchantable if they are suitable for the prospect for which other similar goods are sold, involving the description applied to them, the price and any other relevant information. This act does however does not protect the consumer if he/she has examined the product and missed any defects that should have been seen or if the seller made him/her aware of the defect prior to the purchase of the product.
...with a return policy’s. Guarantee to their customers. However customers trust both companies.to support the need for high value, operations must be ensure that their production are high of quality and usually undamaged.
Handy Andy, Inc., a maker of trash compactors, had a problem with how the distribution of their products was being done by distributors and retailers alike. The company made two models of trash compactors the standard and the deluxe, the latter having more capacity thus a higher price. The distribution of the trash compactor to the end user worked like this, a customer makes an order for a trash compactor through a licensed retailer, once the order is made the retailer buys from the distributor to fulfil that order and then delivers it to the customer. The initial agreement between Handy Andy Inc. and the distributors was based on delivering and installing all units in a period of 5 days after an order was made by a retailer, as compensation
Suppliers: Since the raw material’s are commodities there should be no problems on this front this is not any different
...harged for i.e. a warranty must come free of charge with the product. For example, the price of a car includes the manufacturer warranty that comes with it. Insurance products are heavily regulated and have dozens of federal and state regulations and much oversight. This is meant to ensure that such companies treat all insurance customers fairly and that they maintain enough reserves to pay for any potential claims. Although there are some insurance products sold at the F&I dealership (such as Mechanical Breakdown Insurance, GAP Insurance), for the most part they are 'contracts' between the customer and the service provider - in most cases, to reimburse the customer should something untoward happen to an asset of some kind that the customer is purchasing. In fact, the technical term most used for such products is 'Contractual Liability Insurance Program (CLIP)'.
S.6(2) states that as against a person dealing as consumer, liability for breach of the obligations arising from ss.13, 14 or 15 of the Sale of Goods Act 1979 (seller's implied undertakings as to conformity of goods with description or sample, or as to their quality or fitness for a particular purpose) cannot be excluded or restricted by reference to any contract term.
The exclusion clause is an important device for allocating the risks between the contractual parties. However, the exclusion clauses could mostly be found in written contracts, especially standard form of contracts. Standard form contracts with consumers are often contained in some printed ticket, or delivery note, or receipt, or similar document. In practice, it is very common that if a person wants the product, he may have no alternative but to accept the terms drawn up by the other party even though such terms are disadvantage to him, or he may simply accept it regardless the possible unfavorable position because he does not trouble to read a long list of terms and conditions. Therefore, contracts are regularly signed, tickets are simply accepted, or a tick-box on a website is clicked, commonly between large companies and individual consumers.
The express terms , that parties put down in the contract that is in writing and stated in the contract and cannot be ignored .
Disclaimers are exclusions, limitations or waiver clauses that are intended to prevent or limit the liability of one of the parties involved. Examples include clauses such as consequential damages clauses, no-damage-for-delay clauses, and pay-when-paid clauses (Samuels & Sanders, 2015). Disclaimers are not always written in the contracts. They may be placed in noticeable places or contained in letters.
- Unsafe products can be banned ( product faulty and can not be sold again) or recalled (all stock taken back repaired and then put on the shelves)