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What Are guarantees?
A guarantee is what it sounds like. It is an assurance from the manufacturer or vendor of
a product as to its quality and suitability. Under the terms of a guarantee, if the object
which you bought breaks down or stops working within the lifetime of the guarantee, they
will repair it for you, or replace it free of charge. Most guarantees are for a year or two.
But Don't I Have Those Rights Anyway?
Yes. Under the Sale Of Goods Act, you have statutory rights which state that any goods which
are sold to you must be fit for the purpose they were intend for. If you have a watch, and
after a year it stops working, it was obviously faulty and not fit for it's purpose. You
can, therefore, take it back to the shop you bought it from, even if you don't have a guarantee.
Even better, under your statutory rights, you can demand a refund, while a guarantee only
entitles you to a repair or replacement.
What Are guarantees For, Then?
Vendors and manufacturers often use guarantees to confuse customers, and cause them to
overlook their statutory rights. In many cases, a guarantee can also add value to a product,
and make it seem more attractive. A large number of products now come with guarantee certificates,
which must be signed by the person selling you the product, and in most cases, the salesman
will not do this without being prompted to. This means that the guarantee is invalid, and if your
product breaks a few days later, you may be told that you don't have a valid guarantee, and so
nothing can be done about it. In cases like this, many people forget about their statutory
rights.
On the other hand, some guarantees are useful, as they may be longer term, and therefore
add to your statutory rights. This is because after a few years, or 'reasonable use' your
statutory rights will expire, and the law may take the view that any damage to the product
has been caused by 'fair wear and tear'.
The Dangers Of Extended Warranties
Unlike a guarantee, an extended warranty is something which must often be purchased separately
to the product itself, and can often cost more than half the value of the product.
They come in several varities, from 5 years to lifetime, and cost increases respectively with
the length.
In particular, lifetime warranties are to be avoided, especially if the company is new, or
not well known. This is because, in many cases you and your product may outlive the company
that produced it.
Often, to guard against such occurences, a company will use a large amount of the money paid
for warranties to take out insurance against the goods. If they then go bankrupt, repairs or
replacements under your warranty will be paid for by the insurance company.
However, companies have no obligation under current laws to take out full insurance with
the money gained from the sale of warranties, and when a company goes bankrupt, many people
who hold warranties will find that they cannot get the repairs or replacements that they
need.
© Luke Culverwell 2001, All Rights Reserved |
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