Money Management Newsletter

Holiday Series

Holiday Shopping: Compare Warranties

Dr. Jo Turner

Professor, Family and Consumer Economics

When shopping for Christmas gifts consumers usually compare prices to save money.  Yet another equally important factor to consider is the product warranty.

A warranty is a promise by the manufacturer or seller to stand behind the product.  It may be written, implied, or verbal.

The law gives consumers the right to read the written warranty before purchase if the product cost is more than $15.  The warranty must be easy to read and understand, with all terms and conditions spelled out.

Not all products have written warranties.  If you buy a product "as is," that means the seller is not responsible for any problem or repairs.

There are two types of written warranties: full and limited.

Full Warranty

The full warranty will include the word FULL on the warranty.  This means that a defective product will be repaired or replaced in a reasonable time after you complain.  It also means that you will not have to do anything unreasonable to get this service, such as packing and shipping the product to some remote location for repairs.  A full warranty is good for anyone who owns the product during the warranty period.  That is, if you give the product s a gift or later sell the product, the unexpired portion of the warranty is transferred. 

Check any full warranty to see exactly what is covered.  The full warranty may cover only a part of the product.  An example of this would be a full warranty on the picture tube of your new television.  If the sound goes bad, in this example, you would pay for repairs.

Limited Warranty

Limited warranties differ from full warranties.  Limited means something is missing.  A limited warranty may cover parts but not labor.  It may offer a prorated refund, not a full refund.  It might be limited to the first purchaser only and the customer may be charged for returning the product to a service center for repairs.

Implied Warranties

Implied warranties are rights created by state law.  The most common implied warranty is the warranty of merchantability.  This means that the seller promises the product will do what it is designed to do, that is the toaster will make toast, a reclining chair will recline.  The seller can usually get out of an implied warranty by stating in writing, that no warranty is provided.  Beware of purchasing products, which have written statements of "no warranty given."  Yet, implied warranties may give you some protection that written warranties don't. 

Similar to implied warranties are spoken promises or advertising claims.  These are considered to be warranties.  You have a legal right to get what the company promises. 

One of the last things to check when comparing warranties is the policy covering consequential damages.  That is, if you buy a freezer, the freezer goes out and $500 in food spoils before something can be done about the freezer, will the warranty cover the repair only, or repair or replacement of the freezer and the food?

Once you have made your purchase, keep the warranty and the sales receipt in a safe place. You will need the receipt to show date of purchase and price paid for the product if you need to file a warranty claim.

For more information on warranties or the place to store warranties and other important papers contact your local county Extension office.