When a company promises consumers certain standards of quality and performance, a warranty is created. This warranty guaranties that a product or service will be fit for its intended purpose. A breach of warranty occurs when a product fails to meet these expectations.
A breach of warranty can take a few different forms such as incomplete services provided, goods that are damaged upon receipt, commodities that fail to function as they’re supposed to and products that are not the same as described on the product label. In these situations, the customer may be entitled to remedy.
Potential Consequences for Breach of Warranty
In the United States, there are both federal and state legal remedies for breach of warranty. Depending on the jurisdiction, the company may have to refund the payment, replace the product, provide an extension of warranty or rectify the situation in some other way. In severe cases, individuals and companies may take legal action and sue for punitive damages.
This has become particularly relevant in the tech industry, where products often fail to meet customer expectations. Companies such as Apple and Samsung have faced massive class action lawsuits for alleged breach of warranty. In these cases, courts may decide that the company failed to provide reasonable assurance or meet society’s standards of quality and performance.
How Businesses Can Avoid Breach of Warranty
Businesses should be proactive in ensuring that their products meet customer expectations. Companies should have in place an effective system for tracking customer feedback and continually testing their products. Furthermore, they should consider using third-party standards to make sure their products meet or exceed industry expectations. Companies should also have a clear warranty policy and stick to it.
Companies should also be aware of any applicable regulations or laws related to product safety or quality. With a proactive approach, businesses can avoid being held liable for breach of warranty and limit their exposure to costly lawsuits.
Conclusion
Breach of warranty is a serious matter for business executives. Companies should take measures to ensure they meet customer expectations and industry standards, and be aware of any laws or regulations specific to their product or service. With the proper protocols in place, businesses can avoid costly litigation while providing customers with the quality products they deserve.