Definition
An express warranty is a promise made by a seller or manufacturer to a buyer about the quality, capacity, or performance of a product. It’s a legally enforceable assurance that the product will perform as advertised or sold. This warranty is explicitly stated in the contract or agreement of purchase or sale.
Phonetic
The phonetics of the keyword “Express Warranty” would be: Express: /ɪkˈsprɛs/Warranty: /ˈwɔːrənti/
Key Takeaways
1. Definition of Express Warranty: Express warranty refers to a guarantee provided directly by the manufacturer or seller to the purchase, promising a specific quality, condition, reliability or performance of the product. It is a legally binding assurance which affirms the product will meet certain standards or specifications. 2. Creation of Express Warranty: Express warranty is typically created during a sales transaction, either verbally or written, and need not be stated formally. However, it must explicitly mention the quality, character, or functionality of the product to be classified as an express warranty.3. Legal Obligations: If a product fails to meet the terms of an express warranty, the customer is entitled to a remedy under the law. This could include repair, replacement, or refund. The seller or manufacturer may be held legally responsible if they fail to honor the express warranty.
Importance
An express warranty is a crucial term in business and finance as it is a legally binding assurance given by a seller to a buyer that certain facts or conditions about a product or service are true. It establishes confidence and trust, serving as a guarantee on the quality, reliability, and performance of a product or service. This guarantee holds the seller accountable if the promised conditions are not met, thereby offering a level of protection to the consumer. Therefore, express warranties are invaluable in promoting transparent and fair trade practices, encouraging consumer confidence in market transactions, and enriching overall customer satisfaction.
Explanation
An Express Warranty plays a significant role in providing assurance to purchasers about the quality, nature, or reliability of the product they are buying. This legally binding warranty serves to inspire confidence that the product meets certain standards or specifications. The seller’s declaration ensures buyers that product features and functionality adhere to represented facts. Notably, an express warranty, which can be either verbal or written, protects buyers should the purchased item not function or deliver as promised.Bearing this in mind, express warranties are used by businesses as a cornerstone in building and maintaining customer trust. Consumers, often driven by peace of mind in their purchasing decisions, are more likely to buy products accompanied by an express warranty. Additionally, an express warranty’s existence plays a crucial role in minimizing potential marketplace disputes. If a product fails to perform as specified, customers have the justified right to return it. Hence, express warranties serve as a significant instrument in assuring fair trade and quality control, contributing substantially to enhancing customer satisfaction and brand perception.
Examples
1. Electronics Purchase: When purchasing a new television, the seller provides an Express Warranty saying that the TV will operate correctly for at least 2 years. According to the terms of the warranty, if within this 2-year period, the TV stops working or malfunctions, the seller is responsible for fixing or replacing it at no additional charge. 2. Car Purchase: On buying a new car, the manufacturer or dealer might provide an Express Warranty. This would guarantee that for a defined period, usually 3 years or a certain number of miles, any issues related to the car’s engine, transmission, or other parts would be repaired at no cost to the owner. 3. Home Appliance Sale: If you buy a new refrigerator, the manufacturer usually grants an Express Warranty. This warranty promises that the fridge will remain operable and cool items for a defined period, maybe 5 years. If the fridge fails within that timeframe, the manufacturer pledges to either repair or replace it.
Frequently Asked Questions(FAQ)
What is an Express Warranty?
Is an Express Warranty a legal obligation?
How is an Express Warranty different from an Implied Warranty?
What does an Express Warranty cover?
Is an Express Warranty transferable?
What should I do if the product fails to meet the conditions of the Express Warranty?
Are Express Warranties applicable to used goods?
How long is an Express Warranty valid?
Related Finance Terms
- Product Guarantee
- Warranty Deed
- Terms of Sale
- Implied Warranty
- Consumer Rights
Sources for More Information
