A warranty against defects (or manufacturer's warranty) promises the consumer that:
Sally buys a television that comes with a written warranty. The warranty says the manufacturer will replace the television if it breaks within three years of the initial purchase.
A warranty against defects document must state:
Businesses can include extra information in a warranty against defects to explain how consumer rights apply under the ACL. The extra information must not limit or negate the mandatory text.
A warranty against defects may be a formal written document or any material with writing on it, eg, packaging or labelling.
Warranties against defects may set out requirements the consumer must comply with, eg:
If a trader or manufacturer wishes to seek to restrict a consumer's freedom to choose (eg specify who a consumer uses as a repairer), they should get legal advice on the prohibitions on Exclusive Dealing found in the Competition and Consumer Act 2010. Basically exclusive dealing involves a trader imposing restrictions on a person's freedom to chose whom, in what or where they deal.
A warranty against defects may contain an express warranty.
Express warranties are any additional promises made by the trader or the manufacturer about the quality, performance or features of a product.
When John buys a hammock, the store says the hammock can hold up to 100 kilos. This is an express warranty, as it is a promise about what the goods can do.
Alternatively, you are entitled to:
An extended warranty is when you choose to pay an additional amount (usually at the time of purchase) to 'extend' a manufacturer's warranty for a set period of time.
When a trader offers an extended warranty they must explain exactly what the warranty provides over and above the rights you already have. For example the right to a refund or return if the product is faulty.
Kim buys a new blender. The salesperson informs him that he can pay an extra $50 to make sure the manufacturer's warranty lasts for seven years instead of five. This is an extended warranty.
If a product turns out to be faulty, you may be entitled to a repair, replacement or refund, depending on whether the problem is major or cannot be fixed. This applies regardless of whether the product is still under warranty.
Chris buys a plasma TV for $8000. It stops working after two years. The trader says they will not provide a repair or replacement as the TV only had a 12 month manufacturer's warranty. The trader informs Chris that he should have bought an extended warranty, which would have given him five years' cover. However, it is reasonable for Chris to expect more than two years' use from an $8000 plasma TV. Chris is entitled to a repair, replacement or refund from the trader.
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