The truth about warranties and guarantees
I recently made up my mind about buying a new smartphone (it was not the iPhone) and after hours of research on different models that are currently available on the market, I finally chose the Nokia 5800 Music Express. Whilst comparing prices offered by different stores, I was surprised to see that there was a Rs.3,000 difference between the prices offered by 2 particular stores. This prompted me to call the respective store to inquire about this massive price difference. The response that I got was blunt and probably misleading: "Nou garantie pli bon". Intriguing. What exactly is a 'warranty' or 'guarantee'? Should you pay for it? Here are some of the facts that salesmen may never tell you...
When you should NOT pay a higher price for guarantees
All sellers are legally obliged to ensure the basic level of 'guarantee' that is detailed below. Therefore, even if you have not paid for separate guarantee or if your period of guarantee has expired, as a consumer, you still have the following rights that sellers need to respect.
- The products that you have purchased "must meet the standard that a reasonable person would regard as acceptable bearing in mind the way they were described, what they cost and any other relevant circumstances... Goods must be free from defects, even minor ones, except when they have been brought to your attention by the seller".
Basically, according to a reasonable person, the product must correspond to the exact specifications and description given by the seller. It must also be deemed fit for its normal intended usage.
For example, if you bought a phone without paying for any warranty and soon after, you realise that one of the functions is not working (and thus constitutes a defect), bear in mind that you can still take your receipt and the phone back to the store. Fair enough if the retailer gives you a new phone. But if the retailer promises to get the phone fixed, it may take some time before you get your phone back. In that case, it is worth noting that as a consumer who has been delivered a product with defect, you have the right to ask for a refund instead of waiting to get the phone back. The same applies for other products, e.g. computers, electronics, furniture, etc.
- The legal guarantee "covers, amongst others, their safety and durability".
Following from the previous point, it is obvious that if the product that you have purchased has proved to be abnormally dangerous or short-lasting, you have the right to return it to the seller and claim that it does not correspond to his promise about the particular product.
Moreover, what most salesmen will not tell you (some of them will even deny it) is that if the normal usage of the defective product has caused you personal injury or has damaged your property, you can claim compensation from the seller. The conditions that need to be present are as follow:
- the product was defective, e.g. due to lack of insulation, the processor in your new computer was over-heating.
- the defect in the product caused personal injury or damage to your property, e.g. your processor exploded and damaged other peripherals inside your computer.
- you were making normal use of the product, e.g. you were not using the computer on a higher voltage than you were supposed to.
- the damage was reasonably foreseeable, e.g. it may not be reasonable to expect that the defect would cause your house to catch fire (as far I know).
Some retailers may put the blame on the manufacturers, but note that you can claim compensation from the retail store itself, and not necessarily from the manufacturers. For example, if your retail stores says that the computer was manufactured by Dell, it does not mean that you have to claim compensation from Dell. The local retailer (e.g. Cash & Carry) still needs to compensate you.
This is what the government's website says: "Some goods have manufacturers' guarantees. Do not be put off by traders trying to talk their way out of their responsibilities."
- The seller also has a legal duty to provide adequate information to consumers about the products that they are selling. If the retailer fails to reveal an important piece of information about the product before you purchase it, and that this failure misleads you in your purchase, then you again have a claim against the retailer.
For example, if the retailer did not tell you that the mobile phone came without its charger, then he has fallen short of his duty to inform. You can use such a claim to pressurise the retailer to give you the charger free.
When you SHOULD pay a higher price for guarantees
In addition to the above guarantees, some retail stores offer after-sales services which they often term as ‘guarantees’ or ‘warranties’. The commonest service that retailers offer is the repair of broken products, i.e. when the product itself is not defective but it stops functioning for other reasons. It is important though to inquire what exactly is covered by the terms of the warranty. For example, some retailers will not repair the product if you broke it by being negligent (e.g. you used your mobile phone in the shower), or if the product is completely out of use. Therefore, before buying a product from a store, be sure to ask for detailed information about their terms and conditions of warranty.