Repeat after me: read the small print in warranties

Since this year's packageopening binge is about 48 hours old, chances are good the first warranty claims have begun to surface. Here, therefore, is a primer on warranty law.

Warranties are contractual promises made by the manufacturer or seller of goods to the effect the goods are not defective and will work as intended for some period of time. Because warranties are contractual promises, the law will enforce them like any other contract — meaning it’s important to read the fine print.

There’s a federal law called the Magnuson-Moss Warranty Act that imposes certain obligations on parties offering warranties in connection with consumer goods (cars, televisions, digital can openers, etc.). This law, however, deals with disclosure and doesn’t dictate the actual terms of a warranty.

Under the Magnuson-Moss Warranty Act, if a manufacturer or seller of a consumer product is going to offer a warranty, the warranty must state what is covered and what is not covered; what the warrantor will in fact do under the warranty if there is a defect; the duration of the warranty; and what action needs to be taken to make a claim.

Although the federal law doesn’t determine what manufacturers and sellers must promise purchasers of their products, the required disclosures do at least help to separate warranties that are actually useful from those that are little more than marketing scams (where, say, you must send your new refrigerator to the Galapagos Islands, at your expense, if you want it repaired under warranty).

There are also state-created laws affecting product warranties. For example, the law in all states creates what are called “implied” warranties.

These are legislatively imposed warranties providing that goods will be “merchantable” — meaning they will be free of defects when used for their normal, intended purpose — and that they are fit for any specialized purpose the buyer was told they could be used for.

So, if you were assured by the seller that you could use your 2-ton jack to lift your 6-ton truck, and the jack breaks in the process, you would have a claim for breach of the implied warranty of fitness for a particular purpose.

Since these implied warranties last longer and provide more protection than most contractual warranties, one reason manufacturers and sellers offer written warranties is to avoid the consequences of the implied warranties.

They do this by adding conspicuous language to their written warranties stating the written warranty is the only warranty given and all implied warranties are disclaimed. Except in circumstances involving bodily injury resulting from a product defect, these disclaimers will usually be enforceable.

Another whole topic has to do with optional extended warranties. Suffice it to say most consumer advocates think they’re overpriced and not worth the money.

If a product suffers from defects in materials or workmanship, they argue, those defects are likely to show up early — during the time the initial “free” warranty is in effect. Sellers of extended warranties, of course, disagree.

As a final thought on warranties, some credit card issuers offer limited additional protection against defects — and even breakage — if a product is purchased using their card. Check the details of your cardholder agreement to see if your card issuer offers such a benefit.

Contact Jim Flynn c/o The Gazette, P.O. Box 1779, Colorado Springs 80901; fax 578-8836 or e-mail jtflynn325@hotmail.com. Not all questions can be answered.