Warranty Policy

It is likely that your customers will expect a warranty. The warranty you offer will depend on the industry you are in, local laws and your competition.  There are two types of warrantees; express written warranty and implied warranty that are created by law, advertising claims or even normal and reasonable expectations of the typical consumer.    

If you are purchasing a product for resale the warranty may be provided by the manufacturer. If so you still need to be aware what your responsibilities are under the warranty. If a manufacturer offers to repair or replace defective product but requires that the product be shipped back to the factory will your customers expect to bring the product back to you making you responsible for returning the product. Read the third party warrantee and a make sure you understand your responsibility and liability.

If you are supplying the warrantee it is critical you make sure you create a written warranty with your attorney. When we were building homes we had a very detailed warranty including a disclaimer of an Illinois law that was printed in all capital letters.  I saw a number of smaller and less sophisticated builders who would sell their homes through real estate agents. They would provide a simple statement that the home would be free of defects for a year. Illinois had a "livability law" which in effect said that if the defect made the home unlivable it was covered by an implied warranty. Over the years case law in Illinois court has interpreted this clause to mean anything from the reasonable to the ridiculous.  If the buyer did not like the paint color they selected they could make a warranty claim. Our attorney helped us manage this unreasonable implied warranty.

Whether you have a written warrantee or not you still may create a warrantee with your advertising or even by statements made by your sales people. If you advertise all weather boots it is reasonable for a consumer to expect that the boots can be used in the rain. Whatever your written warrantee your advertising has created a warrantee. Even if you do not advertise the boots as all weather and your warrantee does not cover wet conditions if your sales people tell the consumer they are good for use in the rain a warranty may be created.

A warranty might also be created by the nature of the product. If you are selling food it is implied that the product is safe to eat.

Puffing which is an exaggeration or statement presented as opinion of a salesperson or even expressed in advertising does not create a warranty; most fashionable dress, best value automobile, longer lasting flavor gum.

You need to be aware of what you're customers expect, what you’re warranty is, who covers it, what is your responsibility if the warranty on your product is covered by someone else such as a manufactures, what warranties might be implied by the nature of your product and what is in your advertising or in the sales pitch your salespeople are using that may create warranty.

Original Content copyright 2010 Thomas Robinson