Definition
A limited warranty is a contractual assurance provided by a manufacturer or seller that stipulates certain limitations with respect to the coverage of the warranty. Unlike a full warranty, a limited warranty may cover specific components, services, or duration, excluding others. Typically, this warranty could include parts but exclude labor costs associated with repairs. It is essential for consumers to understand the limitations highlighted in a limited warranty to know what protections are available and what responsibilities they may have.
Examples
-
Automobile Limited Warranty
- A car manufacturer may offer a limited warranty covering engine parts for three years or 36,000 miles, but not cover the cost of labor required to replace those parts.
-
Electronics Limited Warranty
- A company selling electronic devices might provide a one-year limited warranty that covers hardware repairs due to defects, but excludes any damage caused by misuse or unauthorized repairs.
-
Furniture Limited Warranty
- A furniture manufacturer may issue a five-year limited warranty on the frame but exclude fabric and cushioning from the coverage.
Frequently Asked Questions (FAQs)
What is the difference between a limited warranty and a full warranty?
A limited warranty includes specific limitations regarding coverage, duration, or services provided. Conversely, a full warranty typically offers more comprehensive coverage with fewer restrictions.
How do I know what is covered under my limited warranty?
The details of a limited warranty are usually provided in the documentation that comes with the product. It is essential to read the terms and conditions carefully to understand the scope of the coverage.
Can a limited warranty be extended?
Some manufacturers or sellers offer extended warranties for an additional cost, which can extend the duration or scope of the original limited warranty.
Do limited warranties cover labor costs?
Not necessarily. Limited warranties might cover parts but exclude labor costs associated with repairs. It varies by product and warranty terms.
Does a limited warranty cover normal wear and tear?
No, limited warranties typically do not cover routine maintenance or normal wear and tear. They focus on manufacturing defects or specific parts.
Related Terms and Definitions
Warranty
A warranty is a promise or guarantee provided by a manufacturer or seller concerning the condition of a product and the commitment to repair or replace defective parts.
Extended Warranty
An extended warranty is a service contract that extends the duration or expands the coverage of the original warranty, offering additional protection for a fee.
Manufacturer’s Warranty
A manufacturer’s warranty is issued by the product’s maker, ensuring the quality and functionality of the product for a certain period after purchase.
Implied Warranty
An implied warranty is an automatic, unwritten guarantee that the product is fit for the intended purpose and meets basic quality standards.
Full Warranty
A full warranty offers comprehensive coverage on the product, typically including parts and labor, without significant exclusions.
Online Resources
- Consumer Protection - Federal Trade Commission (FTC) - Information on consumer rights concerning warranties.
- Small Business Administration (SBA) - Guidance on warranties for small business owners.
- Better Business Bureau (BBB) - Resource for evaluating business warranties and consumer protection.
Suggested Books for Further Studies
- “Warranty Management and Product Manufacture” by D.N.P. Murthy, Wallace R. Blischke
- “Understanding Warranty Risk Management” by Edward D. Hiler, Ph.D.
- “The Law of Consumer Protection and Fair Trading” by Geraint Howells, Iain Ramsay, Thomas Wilhelmsson
Fundamentals of Limited Warranties: Business Law Basics Quiz
Thank you for delving into this comprehensive look at limited warranties and testing your knowledge with our challenging quiz. Keep enhancing your understanding of business law and consumer rights!
