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IN
business and legal transactions, a warranty is a
contract , whether express or implied, between the buyer
and the seller, manufacturer, producer or distributor of
a consumer product or service concerning the rights and
obligations of both parties in a sale or lease
transaction.
The
buyer relies on this assurance that they may seek remedy
in the event that the product or service fails to
perform for the purpose for which it was made, produced
or manufactured.
For
instance, a consumer bought an electric fan from an
authorized appliance dealer, thus expects the product to
be in excellent condition since it is brand-new.
However, after only a week of usage, it produced a
recurrent screeching sound from the engine side.
Since
the item was still under warranty, the consumer brought
it back to the store and the unit was repaired for free.
But, after another week, it conks out again with the
same defect, and was brought back a second time, but the
problem just won’t go away.
Although
the repair was free, the trip to the repair center cost
the consumer expense in transportation and valuable
time. The defect is recurrent and the consumer
certainly did not want to be further inconvenienced by
having a product that could not fulfill its function as
guaranteed. The consumer then asks, “Is there another
remedy available for me?”
The
answer is yes. Article 97 of the Consumer Act, or the
Liability for Defective Products, states that, “Any
Filipino or foreign manufacturer, producer and importer
shall be liable for redress for damages caused to
consumers by defects resulting from design, manufacture,
construction, assembly and erection, formulas, handling
and making up, as well as for insufficient or inadequate
information on the use and hazards thereof.”
A
product is considered defective when it does not offer
the performance rightfully expected of it, and Article
68 (b) (4) of the Consumer Act, or the Enforcement of
Warranty or Guarantee, states that, “Warranty rights can
be enforced by presentment of claim. To this end, the
purchaser needs only to present to the immediate seller
either the warranty card or the official receipt along
with the product to be serviced or returned. No other
documentary requirement shall be demanded from the
purchaser.”
The
minimum standards for warranties include (1) remedy
within a reasonable time and without charge in case of a
defect, malfunction or failure to conform to such
written warranty; or (2) permit the consumer to elect
whether to ask for a refund or replacement without
charge of such product or part, as the case may be,
where, after reasonable number of attempts to remedy the
defect or malfunction, the product continues to
demonstrate the defect.
All
these terms are specifically discussed in the two kinds
of warranty—the express and implied.
An
express warranty is already operative from moment of
sale. Through this, a manufacturer/seller is promising
to replace a defective product or a part of it within a
reasonable time. It may also include a refund or free
replacement of the defective part, including
installation. If the manufacturer or seller cannot fix a
product after a reasonable number of attempts, a refund
is an option.
The
seller and the consumer may stipulate the period within
which the express warranty shall be enforceable. If the
implied warranty accompanies an express warranty, both
will be of equal duration. Any other implied warranty
shall endure not less than 60 days nor more than one
year following the sale of new consumer products.
An
implied warranty is a guarantee about the quality of
goods or services purchased that is not written down or
explicitly spoken. Virtually everything that is bought
comes with two implied warranties. One for
“merchantability” and one for “fitness.”
The
implied warranty of merchantability is an assurance that
a new item will work for its specified purpose. For
example, an electric carving knife’s blade is
specifically designed to cut meat and poultry, if the
buyer uses it for something it was not designed for, say
trimming shrubs, the warranty may be voided.
The
implied warranty of fitness applies when you buy an item
for a specific purpose. In this instance, the buyer
notifies the manufacturer of a specific need, and the
item the manufacturer makes is guaranteed to meet them.
For example, is buying new tires for a bicycle with the
purchaser telling the store clerk that it is intended
for mountain cycling. When the tires puncture after
passing over a small hump on a paved road, then the
tires do not conform to the warranty of fitness.
In case
of breach of implied warranty, the consumer may retain
the product and recover damages, cancel and contract and
recover from the seller so much of the purchase price as
has been paid, including damages.
For
companies, it is their duty to inform consumers about
their warranty-service policy that comes with the
product and what may be expected from them during and
after the warranty period.
The
imposition of administrative fines of up to P300,000,
depending on the gravity of the offense, and the
revocation of the shop’s business permit and license
await violators of the provisions of Article 97 of
Republic Act 7394.
Thus,
the Consumer Act ensures that consumers get value for
money by requiring businesses to be mindful of the
quality of products they place in the market. But such
protection granted under the law should never be abused.
Consumers should also take responsibility and be
discerning when it comes to the quality of goods they
are buying.
For
businesses, a good “after-sales service” is considered
as a public profession that the company has full
confidence in the quality of its merchandise. It shows
that they honor the customers who are making the company
prosper by looking out for ways to keep them satisfied.
In the
end, a good after-sales service benefits consumers and
businesses as this minimizes hassle on both sides since
a system is already in place to ensure that complaints
are addressed efficiently. This creates goodwill for
business—a plus factor in a highly competitive sector.
* * *
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