Can an automotive dealership void your warranty part 2

Before you make a major purchase, there is an important promise you should read. It is called the warranty — the manufacturer's or seller's promise to stand behind a product. Warranties vary in the amount of coverage they provide. So, just as you compare the style, price, and other characteristics of products before you buy, you also can compare their warranties. The Magnuson-Moss Warranty Act of 1975 requires that warranties be available for you to read before you make a purchase.

WHAT IS THE MAGNUSON-

MOSS WARRANTY ACT?

On January 4, 1975, President Ford signed into law the Magnuson-Moss Warranty Act, Title 1, 101-112, 15 U.S.C. 2301 et seq. This act, effective July 4, 1975, is designed to "improve the adequacy of information available to consumers, prevent deception, and improve competition in the marketing of consumer products. . . ."

The Magnuson-Moss Warranty Act applies only to consumer products, which are defined as "any tangible personal property which is distributed in commerce and which is normally used for personal, family, or household purposes (including any such property intended to be attached to or installed in any real property without regard to whether it is so attached or installed)."

If a warrantor sells a consumer product costing more than $15 under written warranty, the writing must state the warranty in readily understandable language as determined by standards set forth by the Federal Trade Commission. There is, however, no requirement that a warranty be given nor that any product be warranted for any length of time. Thus the Act only requires that when there is a written warranty, the warrantor clearly disclose the nature of his warranty obligation prior to the sale of the product. The consumer may then compare warranty protection, thus shopping for the "best buy."

To further protect the consumer from deception, the Act requires that any written warranty must be labeled as either a "full" or a "limited" warranty. Only warranties that meet the standards of the Act may be labeled as "full." One of the most important provisions of the Act prohibits a warrantor from disclaiming or modifying any implied warranty whenever any written warranty is given or service contract entered into. Implied warranties may, however, be limited in duration if the limitation is reasonable, conscionable, and set forth in clear and unmistakable language prominently displayed on the face of the warranty.

A consumer damaged by breach of warranty, or noncompliance with the act, may sue in either state or federal district court. Access to federal court, however, is severely limited by the Act's provision that no claim may be brought in federal court if:

(a) The amount in controversy of any individual claim is less than $25,000;
(b) the amount in controversy is less than the sum or value of $50,000 computed on the basis of all claims in the suit; or
(c) a class action is brought, and the number of named plaintiffs is less than 100. In light of these requirements it is likely that most suits will be brought in state court. If the consumer prevails, he is awarded costs and attorneys' fees. Nothing in the Act invalidates any right or remedy available under state law, and most suits should proceed on claims based on both the Code and the Act.

Understanding the Magnuson-Moss Warranty Act

The Magnuson-Moss Warranty Act is the federal law that governs consumer product warranties. Passed by Congress in 1975, the Act requires manufacturers and sellers of consumer products to provide consumers with detailed information about warranty coverage. In addition, it affects both the rights of consumers and the obligations of warrantors under written warranties.

To understand the Act, it is useful to be aware of Congress' intentions in passing it. First, Congress wanted to ensure that consumers could get complete information about warranty terms and conditions. It provides consumers with a way of learning what warranty coverage is offered on a product before they buy. The Act gives consumers a way to know what to expect if something goes wrong and thus helps to increase customer satisfaction.

Second, Congress wanted to ensure that consumers could compare warranty coverage before buying. By comparing, consumers can choose a product with the best combination of price, features, and warranty coverage to meet their individual needs.

Third, Congress intended to promote competition on the basis of warranty coverage. By assuring that consumers can get warranty information, the Act encourages sales promotion on the basis of warranty coverage and competition among companies to meet consumer preferences through various levels of warranty coverage.

Finally, Congress wanted to strengthen existing incentives for companies to perform their warranty obligations in a timely and thorough manner and to resolve any disputes with a minimum of delay and expense to consumers. Thus, the Act makes it easier for consumers to pursue a remedy for breach of warranty in the courts, but it also creates a framework for companies to set up procedures for resolving disputes inexpensively and informally, without litigation.

What the Magnuson-Moss Act Does Not Require

In order to understand how the Act affects you as a businessperson, it is important first to understand what the Act does not require.

First, the Act does not require any business to provide a written warranty. The Act allows businesses to determine whether to warrant their products in writing. However, once a business decides to offer a written warranty on a consumer product, it must comply with the Act.

Second, the Act does not apply to oral warranties. Only written warranties are covered.

Third, the Act does not apply to warranties on services. Only warranties on goods are covered. However, if your warranty covers both the parts provided for a repair and the workmanship in making that repair, the Act does apply to you.

Finally, the Act does not apply to warranties on products sold for resale or for commercial purposes. The Act covers only warranties on consumer products. This means that only warranties on tangible property normally used for personal, family, or household purposes are covered. (This includes property attached to or installed on real property.) Note that applicability of the Act to a particular product does not, however, depend upon how an individual buyer will use it.

What the Magnuson-Moss Act Requires

In passing the Magnuson-Moss Warranty Act, Congress specified a number of requirements that warrantors must meet. Congress also directed the FTC to adopt rules to cover other requirements. The FTC adopted three Rules 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). In addition, the FTC has issued an interpretive rule that clarifies certain terms and explains some of the provisions of the Act. This section summarizes all the requirements under the Act and the Rules.

The Act and the Rules establish three basic requirements that may apply to you, either as a warrantor or a seller.

As a warrantor, you must designate, or title, your written warranty as either "full" or "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.

The titling requirement, established by the Act, applies to all written warranties on consumer products costing more than $10. However, the disclosure and pre-sale availability requirements, established by FTC Rules, apply to all written warranties on consumer products costing more than $15.

What the Magnuson-Moss Act Does Not Allow

There are three prohibitions under the Magnuson-Moss Act. They involve implied warranties, so-called "tie-in sales" provisions, and deceptive or misleading warranty terms.

Disclaimer or Modification of Implied Warranties

The Act prohibits anyone who offers a written warranty from disclaiming or modifying implied warranties. This means that no matter how broad or narrow your written warranty is, your customers always will receive the basic protection of the implied warranty of merchantability.

There is one permissible modification of implied warranties, however. 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. For example, if you offer a two-year limited warranty, you can limit implied warranties to two years. However, if you offer a "full" written warranty, you cannot limit the duration of implied warranties.

If you sell a consumer product with a written warranty from the product manufacturer, but you do not warrant the product in writing, you can disclaim your implied warranties. (These are the implied warranties under which the seller, not the manufacturer, would otherwise be responsible.) But, regardless of whether you warrant the products you sell, as a seller, you must give your customers copies of any written warranties from product manufacturers.

"Tie-In Sales" Provisions

Generally, tie-in sales provisions are not allowed. Such a provision would require a purchaser of the warranted product to buy an item or service from a particular company to use with the warranted product in order to be eligible to receive a remedy under the warranty. The following are examples of prohibited tie-in sales provisions.

In order to keep your new Plenum Brand Vacuum Cleaner warranty in effect, you must use genuine Plenum Brand Filter Bags. Failure to have scheduled maintenance performed, at your expense, by the Great American Maintenance Company, Inc., voids this warranty.

While you cannot use a tie-in sales provision, your warranty need not cover use of replacement parts, repairs, or maintenance that is inappropriate for your product. The following is an example of a permissible provision that excludes coverage of such things.

While necessary maintenance or repairs on your AudioMundo Stereo System can be performed by any company, we recommend that you use only authorized AudioMundo dealers. Improper or incorrectly performed maintenance or repair voids this warranty.

Although tie-in sales provisions generally are not allowed, you can include such a provision in your warranty if you can demonstrate to the satisfaction of the FTC that your product will not work properly without a specified item or service. If you believe that this is the case, you should contact the warranty staff of the FTC's Bureau of Consumer Protection for information on how to apply for a waiver of the tie-in sales prohibition.

Deceptive Warranty Terms

Obviously, warranties must not contain deceptive or misleading terms. You cannot offer a warranty that appears to provide coverage but, in fact, provides none. For example, a warranty covering only "moving parts" on an electronic product that has no moving parts would be deceptive and unlawful. Similarly, a warranty that promised service that the warrantor had no intention of providing or could not provide would be deceptive and unlawful.

How the Magnuson Moss Act May Affect Warranty Disputes

Two other features of the Magnuson-Moss Warranty Act are also important to warrantors. First, the Act makes it easier for consumers to take an unresolved warranty problem to court. Second, it encourages companies to use a less formal, and therefore less costly, alternative to legal proceedings. Such alternatives, known as dispute resolution mechanisms, often can be used to settle warranty complaints before they reach litigation.

Consumer Lawsuits

The Act makes it easier for purchasers to sue for breach of warranty by making breach of warranty a violation of federal law, and by allowing consumers to recover court costs and reasonable attorneys' fees. This means that if you lose a lawsuit for breach of either a written or an implied warranty, you may have to pay the customer's costs for bringing the suit, including lawyer's fees.

Because of the stringent federal jurisdictional requirements under the Act, most Magnuson-Moss lawsuits are brought in state court. However, major cases involving many consumers can be brought in federal court as class action suits under the Act.

Although the consumer lawsuit provisions may have little effect on your warranty or your business, they are important to remember if you are involved in warranty disputes.

Alternatives to Consumer Lawsuits

Although the Act makes consumer lawsuits for breach of warranty easier to bring, its goal is not to promote more warranty litigation. On the contrary, the Act encourages companies to use informal dispute resolution mechanisms to settle warranty disputes with their customers. Basically, an informal dispute resolution mechanism is a system that works to resolve warranty problems that are at a stalemate. Such a mechanism may be run by an impartial third party, such as the Better Business Bureau, or by company employees whose only job is to administer the informal dispute resolution system. The impartial third party uses conciliation, mediation, or arbitration to settle warranty disputes.

The Act allows warranties to include a provision that requires customers to try to resolve warranty disputes by means of the informal dispute resolution mechanism before going to court. (This provision applies only to cases based upon the Magnuson-Moss Act.) If you include such a requirement in your warranty, your dispute resolution mechanism must meet the requirements stated in the FTC's

Rule on Informal Dispute Settlement Procedures (the Dispute Resolution Rule).

Briefly, the Rule requires that a mechanism must:

Be adequately funded and staffed to resolve all disputes quickly;
Be available free of charge to consumers;
Be able to settle disputes independently, without influence from the parties involved;
Follow written procedures;
Inform both parties when it receives notice of a dispute;
Gather, investigate, and organize all information necessary to decide each dispute fairly and quickly;
Provide each party an opportunity to present its side, to submit supporting materials, and to rebut points made by the other party; (the mechanism may allow oral presentations, but only if both parties agree);
Inform both parties of the decision and the reasons supporting it within 40 days of receiving notice of a dispute;
Issue decisions that are not binding; either party must be free to take the dispute to court if dissatisfied with the decision (however, companies may, and often do, agree to be bound by the decision);
Keep complete records on all disputes; and
Be audited annually for compliance with the Rule.

It is clear from these standards that informal dispute resolution mechanisms under the Dispute Resolution Rule are not "informal" in the sense of being unstructured. Rather, they are informal because they do not involve the technical rules of evidence, procedure, and precedents that a court of law must use.

Currently, the FTC's staff is evaluating the Dispute Resolution Rule to determine if informal dispute resolution mechanisms can be made simpler and easier to use. To obtain more information about this review, contact the FTC's warranty staff.

As stated previously, you do not have to comply with the Dispute Resolution Rule if you do not require consumers to use a mechanism before bringing suit under the Magnuson-Moss Act. You may want to consider establishing a mechanism that will make settling warranty disputes easier, even though it may not meet the standards of the Dispute Resolution Rule.

UNIFORM COMMERCIAL CODE: EXPRESS & IMPLIED WARRANTIES

The Uniform Commercial Code is a “model” law governing numerous commercial transactions. All fifty states have enacted versions of the UCC., with some variations from one state to another. New Hampshire’s version of the UCC is codified at RSA 382-A. Article 2 of the UCC governs the sale of “goods” and is the part of the UCC most often involved in consumer sales.

The UCC defines a warranty as a promise or affirmation made by the seller to the buyer of goods which is relied on by the buyer in making a decision to buy a product, and so becomes part of the sales contract between the buyer and seller. Under both the UCC and common business practice, warranties can be either express or implied.

In a sales transaction, consumers should carefully read all documents provided with the merchandise to see whether there is an express written warranty.

Express warranties can also be oral, where a seller’s oral statement to a buyer concerning the sale of a particular good can trigger an express warranty. This is, however, difficult to prove. For an oral express warranty to arise out of a sales transaction, the seller will have had to include in the sale pitch statements such as promises or factual statements about a particular product’s ability to satisfy certain requirements.

EXAMPLE: Joyce Pasta goes to the central New Hampshire outlet for StupendoMart and buys an aluminum saucepan set made by the HotStuff Manufacturing Company. Joyce takes the pans home and immediately cooks all her favorite dishes in them. To her amazement and horror, the handles of all the pans break, through no fault of hers. She looks at the box in which the pans were packed and finds a “limited warranty” which promises that the company will replace defective pans at no cost. Joyce has the right to replacement pans in accordance with the terms of the written express warranty.

For an oral express warranty to take effect, it requires neither the seller’s use of explicit words such as “warranty” or “guarantee” nor the seller’s intent to make a warranty. On the other hand, were the seller to merely state an opinion about a particular good to the buyer, this alone would not trigger an express warranty. The same is true of standard sales embellishments.

EXAMPLE: Sandra Smallton purchases a used car from Swifty’s Used Cars. During the sales pitch, Mr. Swifty tells Sandra that the oil spot under the transmission was “nothing to worry about” and that Swifty’s would fix the leak “if it becomes a problem.” After 100 miles, the car will not stay in gear, and Mr. Swifty refuses to fix it. Mr. Swifty’s oral statements could be construed as an express warranty to repair that transmission problem. On the other hand, had Mr. Swifty merely stated to Sandra that the car “was a beaut” or that he thought the car was a “great bargain,” it is unlikely that any warranty was created.

UCC section 382-A: 2-329 requires that manufacturers who provide an express warranty also provide warranty services if the consumer goods have a retail value greater than $100. The services must include:

an address or toll-free number for information on warranty service;
“adequate” direct factory service; and
at least one service representative in New Hampshire to provide services or repairs under the terms of the express warranty.

When a manufacturer designates a service representative, it must make parts available to the service representative within 30 days of receiving an order (some exceptions apply) and must pay the service representative the amount for parts and labor that the representative normally and reasonably charges for like service and repairs. A court may order persons or companies failing to comply with this law to provide warranty service, to pay a civil penalty of $25 for each day of noncompliance, or to replace the item under warranty.

WRITTEN WARRANTIES

Written warranties come with most major purchases, although this is not legally required. The protection offered by written warranties varies greatly, so it is important to compare warranties before making a purchase.

Here are some questions to keep in mind when comparing warranties.

WHAT PARTS AND REPAIR PROBLEMS ARE COVERED BY THE WARRANTY?

Check to see if any parts of the product or types of repair problems are excluded from coverage. Are any expenses excluded from coverage? Some warranties require you to pay for labor charges. How long does the warranty last? Check the warranty to see when it expires.

DOES THE WARRANTY COVER "CONSEQUENTIAL DAMAGES"?

Many warranties do not cover consequential damages. This means that the company will not pay for any damage the product caused, or your time and expense in getting the damage repaired. For example, if your freezer breaks and the food spoils, the company will not pay for the food you lost.

ARE THERE ANY CONDITIONS OR LIMITATIONS ON THE WARRANTY?

Some warranties only provide coverage if you maintain or use the product as directed. For example, a warranty may cover only personal uses — as opposed to business uses — of the product. Make sure the warranty will meet your needs.

WHO DO YOU CONTACT TO OBTAIN WARRANTY SERVICE?

It may be the seller or the manufacturer who provides you with service.

WHAT WILL YOU HAVE TO DO TO GET REPAIRS?

Look for conditions that could prove expensive, such as a requirement that you ship a heavy object to a factory for service.

WHAT WILL THE COMPANY DO IF THE PRODUCT FAILS?

Find out if the company will repair it, replace it, or return your money.

Do Aftermarket Upgrades Void Factory Warranties?

Many people have heard the SCARE Tactics some car dealers use to discourage new car buyers from having aftermarket equipment installed in the vehicles. Should you have any concerns about whether or not an installation will void the factory warranty , cite the Magnuson-Moss Warranty Act of 1975. The act states that a company cannot invalidate its warranty because the consumer had an accessory installed , no matter what the brand, unless the accessory can be proven to have caused the defect under warranty.

Can an automotive dealership void your warranty?

Nearly everyone has heard about someone who has taken a vehicle that has been modified with aftermarket parts to a dealer for warranty service, only to have the dealer refuse to cover the defective items. The dealer usually states that because of the aftermarket parts the warranty is void, without even attempting to determine whether the aftermarket part caused the problem. This is illegal.

Vehicle manufacturers are not allowed to void the vehicle warranty just because aftermarket parts are on the vehicle. To better understand this problem it is best to know the differences between the two types of new car warranties and the two types of emission warranties.

SPOKEN WARRANTIES

Sometimes a salesperson will make an oral promise, for example, that the seller will provide free repairs. However, if this claim is not in writing, you may not be able to get the promised service. Have the salesperson put the promise in writing, or do not count on the service.

SERVICE CONTRACTS

When you buy a car, home, or major appliance you may be offered a service contract. Although often called "extended warranties," service contracts are not warranties. Warranties are included in the price of the product. Service contracts come separately from the product, at an extra cost. To decide whether you need a service contract, you should consider several factors; whether the warranty already covers the repairs that you would get under the service contract; whether the product is likely to need repairs and their potential costs; how long the service contract is in effect; and the reputation of the company offering the service contract. To learn more about buying a service contract, write: "Service Contracts," Public Reference, Federal Trade Commission, Washington, D.C. 20580.

IMPLIED WARRANTIES

Although warranties are not required by law, there is another type of warranty that is. It is called an "implied" warranty. Implied warranties are created by state law, and all states have them. Almost every purchase you make is covered by an implied warranty. The most common type of implied warranty is called a "warranty of merchantability." This means that the seller promises the product will do what it is supposed to do. For example, a car will run, a toaster will toast.

Some warranties are “implied” by law. An implied warranty is a promise that the good will have characteristics or uses that the maker, distributor, or seller do not expressly state. An implied warranty assumes that the product is fit, safe. and will perform the function for which it was purchased. For example, if you rely on a seller’s skill or judgment to select a suitable product and the seller knows your purpose for buying the product, then there is an implied warranty that the product sold will suit the intended purpose.

The implied warranty most useful to consumers is the “implied warranty of merchantability.” It requires that goods be of “fair-average quality,” and adequately packaged. Moreover, the goods must conform to promises or statements of fact made on the container or label, and must suit their intended use.

EXAMPLE: Jane Beard buys a Miraco Food Mixer. She unpacks the mixer from its box when she gets it home and tries it out; the mixer, however, will not mix food. In addition to any express warranties made by the manufacturer or seller of the mixer, Jane can rely on the implied warranty of merchantability. This warranty may become important in cases where the manufacturer or seller of the product makes no express warranties and unsuccessfully tries to disclaim implied warranties.

Another type of implied warranty is the "warranty of fitness for a particular purpose." This applies when you buy a product on the seller's advice that it is suitable for a particular use. For example, a seller who suggests that you buy a certain sleeping bag for zero-degree weather warrants that the sleeping bag will be suitable for zero degrees. If your purchase does not come with a written warranty, it is still covered by implied warranties unless the product is marked "as is," or the seller otherwise indicates in writing that no warranty is given.

Several states, including Kansas, Maine, Maryland, Massachusetts, Mississippi, Vermont, West Virginia, and the District of Columbia, do not permit "as is" sales. If problems arise that are not covered by the written warranty, you should investigate the protection given by your implied warranty. Implied warranty coverage can last as long as four years, although the length of the coverage varies from state to state. A lawyer or a state consumer protection office can provide more information about implied warranty coverage in your state.

New Car Warranties

When a vehicle is purchased new and the owner is protected against the faults that may occur by an expressed warranty — an offer by the manufacturer to assume the responsibility for problems with predetermined parts during a stated period of time. Beyond the expressed warranty, the vehicle manufacturer is often held responsible for further implied warranties. These state that a manufactured product should meet certain standards. However, in both cases, the mere presence of aftermarket parts doesn't void the warranty.

If a dealer denies a warranty claim involving an implied or expressed new car warranty and you would like help, you can contact the Federal Trade Commission (FTC). The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop and avoid them. To file a complaint, you can call toll-free, 1-877-FTC-HELP (1-877-382-4357), or use the online complaint form. The FTC enters Internet, telemarketing, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies worldwide.

Emission Warranties

There are also two emission warranties (defect and performance) required under the clean air act. The defect warranty requires the manufacturer to produce a vehicle which, at the time of sale, is free of defects that would cause it to not meet the required emission levels for it's useful life as defined in the law. The performance warranty implies a vehicle must maintain certain levels of emission performance over it's useful life. If the vehicle fails to meet the performance warranty requirements, the manufacturer must make repairs at no cost to the owner, even if an aftermarket part is directly responsible for a warranty claim, the vehicle manufacturer cannot void the performance warranty. This protection is the result of a parts self — certification program developed by the Environmental Protection Agency (EPA) and the Specialty Equipment Market Association (SEMA).

In cases where such a failed aftermarket part is responsible for a warranty claim, the vehicle manufacturer must arrange a settlement with the part manufacturer, but by law the new vehicle warranty is not voided.

Overall, the laws governing warranties are very clear. The only time a new vehicle warranty can be voided is if an aftermarket part has been installed and it can be proven that it is responsible for an emission warranty claim. However, a vehicle manufacturer or dealership cannot void a warranty simply because an an aftermarket equipment has been installed on a vehicle.

If a dealership denies a warranty claim and you think the claim falls under the rules explained above concerning the clean air act (such as an emission part failure), obtain a written explanation of the dealers refusal. Then follow the steps outlined in the owners manual. However, if this fails, then phone your complaint in to the EPA at (202) 233-9040 or (202) 326-9100.

United States Code Annotated Title 15 Commerce And Trade Chapter 50 Consumer Product Warranties 15 Section 2302

"(c) No warrantor of a consumer product may condition his written or implied warranty of such product on the consumer's using, in connection with such product, any article or service (other than article or service provided without charge under terms of warranty) which is identified by brand, trade, or corporate name; except that the prohibition of this subsection may be waived by the Commission if:

The warrantor satisfies the Commission that the warranted product will function properly only if the article or service so identified is used in connection with the warranted product, and
the Commission finds that such a waiver is in the public interest."

What This Means To You!

First, it means the manufacturer of your printer, copier, typewriter, or fax machine cannot tell you that you must use their brand of product in your machine, unless they give it to you for free; or unless they have predetermined ahead of time and had the Commission reach a decision to approve the fact that ONLY their product or service will cause the machine to work properly. (You'd know this if it were an approved decision.. it would say so specifically in the warranty.)

Second, it means they cannot void your warranty because you used a brand other than their own in their machine.

Third, it means the manufacturer is NOT required, however, to make repairs to your machine if it has been damaged due to use of a product they did not manufacture, co-manufacture, or authorize for use in it.

Vehicle Dealers Obligations

Fact: Dealers don’t like warranty work, because it pays less than normal repair work. By promoting the myth that aftermarket equipment automatically voids warranties, some dealers avoid such low-paying work. Instead, they attempt to charge customers the prime service rate for work which is rightfully done under warranty.

Under the Magnuson-Moss Act, aftermarket equipment which improves performance does not void a vehicle manufacturer’s original warranty, unless the warranty clearly and conspicuously states that aftermarket equipment voids the warranty. Most states have warranty statutes, as well. Which provide further protections for vehicle owners.

In other words, that means a dealer can’t wiggle out of his legal warranty obligation merely because you install aftermarket equipment. To find out if any aftermarket equipment automatically voids your vehicle’s warranty, check the owner’s manual. It is likely the language you are looking for appears under a heading such as “What Is Not Covered.” Although the language seems negative, remember your vehicle manufacturer is simply saying he does not cover the aftermarket products themselves. He is not saying that the products would void the vehicle warranty.

Suppose your modified vehicle needs repairs while still under warranty. Without analyzing the true cause of the problem, the dealer attempts to deny warranty coverage. He made his decision simply based on the fact that you’ve installed aftermarket equipment —a convenient way to dodge low-paying warranty work.

An example of how ridiculous this can get is the man who was denied warranty coverage by a dealer on his power door locks, because he had improved his exhaust system! Sounds nuts? It really happened — because that man did not know his rights and challenge the dealer’s decision.

Fact: A dealer must prove — not just say — that aftermarket equipment caused the need for repairs before he can deny warranty coverage on that basis.

Point out to the dealer the provision of the Magnuson-Moss Act. Require that he explain to you how the aftermarket equipment caused the problem. If he can’t — or his explanation sounds questionable — it is your legal right to demand he comply with the warranty.

Fact: If you are still being unfairly denied warranty coverage, there is recourse. The Federal Trade Commission, which administers the Magnuson-Moss Act, monitors compliance with warranty issues. Direct complaints to the FCT at (202) 326-3128.

A Businessperson's Guide to Federal Warranty Law

POINTS TO REMEMBER

Whether full or limited, each warranty must provide the following information in plain language:
- what the warranty does and does not cover;
- a step-by-step procedure the consumer must follow to obtain services;
- a description of what repairs or replacements will be made if the product is faulty; and
- a description of what expenses the consumer, and the manufacturer, will pay on a faulty product.
Read a warranty carefully to find out what is, and is not, covered.
Comparison shop for warranties as you would for products because warranties vary widely in what they cover. To compare warranties, ask the following questions:
- How long does the warranty last?
- Is the warranty full or limited?
- What parts, labor, or potential problems are expressly excluded? Is any part or problem not mentioned at all?
- What will the manufacturer do if the product has a defect? What are your responsibilities? Is there a toll-free number for service and/or a list of local repair shops?
- Is there a parts manual for do-it-yourself repairs and are parts available locally?
Warranty service requirements are important.
- Does the product have to be packaged in its original materials?
- Is there a local repair shop? If not, where will the product have to be shipped?
- How long will the repair servicing take?
Warranties may not be transferable to other owners, so make sure you know who is covered. (For example, if you want to sell your lawn mower that is still covered under its manufacturer’s warranty, the warranty would extend to the next owner only if allowed by the warranty.)

PREVENTING PROBLEMS

To minimize the chance of a problem with your warranty, take these precautions:

Consider the reputation of the company offering the warranty. If you are not familiar with the company, ask your local or state consumer protection office or Better Business Bureau if they have any complaints against the company. A warranty is only as good as the company that offers it.
Before you buy, read the warranty. See exactly what protection the warranty gives you.
Save the sales slip and file it with your warranty. You may need it later to document the date of your purchase or, in the case of a warranty limited to the first purchaser, that you were the original buyer.
Perform any maintenance or inspections required by the warranty.
Use the product according to the manufacturer's instructions. Abuse or misuse of the product may cancel your warranty coverage.

RESOLVING DISPUTES

If you are faced with any problems with a product or with obtaining the promised warranty service, here are some steps you can take:

Read your product instructions and warranty carefully. Do not expect features or performance that your product was not designed to give, or assume warranty coverage that was never promised. Having a warranty does not mean that you automatically get a refund if the product is defective. The company may be entitled to try to fix it first. In addition, if you reported a defect to the company during the warranty period and the product was not fixed properly, the company must correct the problem, even if your warranty has expired.

Discuss your complaint with the seller. Disputes usually can be resolved at this level. But if you cannot reach an agreement, write the manufacturer. Your warranty should list the company's mailing address. Send all letters by certified mail and keep copies.

If you cannot get satisfaction from either the seller or manufacturer, contact your local consumer protection agencies. They may be able to help.

Inquire about dispute resolution organizations. They arbitrate disagreements when both you and the company are willing to participate. The company or local consumer protection office can suggest organizations to contact.

Consult your warranty; dispute resolution may be a required first step before going to court.

Most states have small claims courts. If the amount of money in dispute is relatively small, usually less than $750, you can file a lawsuit in small claims court. The costs are low, procedures are simple, and lawyers usually are not needed. The clerk of the small claims court can tell you how to bring your lawsuit and what the dollar limits are in your state.

If none of these actions resolves your dispute, you may want to consider a lawsuit. The Magnuson-Moss Act allows you to sue for damages or for any other type of relief the court awards, including legal fees. A lawyer will be able to advise you whether to proceed with a lawsuit.

WHAT TO DO, WHERE TO GO IF YOU HAVE A PROBLEM

If you have a problem with a product, check to see if its warranty is still in effect. Next, call the store where you purchased the product to see if they will either replace or repair it for you. If the store is unable to assist you, contact the manufacturer (ask the retailer or look on the warranty card for the address or telephone number). The manufacturer may refer you to an authorized service center.

If a warranty does not follow the guidelines stipulated by the Magnuson-Moss Warranty Act, contact the Federal Trade Commission.

Although the FTC cannot represent you directly in a dispute with a company, it wants to know if companies are meeting their warranty obligations. To report violations of the Warranty Act, or other warranty-related problems, send your complaints to: Correspondence Branch, Federal Trade Commission, Washington, D.C. 20580

75,00% of 4 voters found this FAQ useful, I found this FAQ