Accendo Reliability

Your Reliability Engineering Professional Development Site

  • Home
  • About
    • Contributors
  • Reliability.fm
    • Speaking Of Reliability
    • Rooted in Reliability: The Plant Performance Podcast
    • Quality during Design
    • Critical Talks
    • Dare to Know
    • Maintenance Disrupted
    • Metal Conversations
    • The Leadership Connection
    • Practical Reliability Podcast
    • Reliability Matters
    • Reliability it Matters
    • Maintenance Mavericks Podcast
    • Women in Maintenance
    • Accendo Reliability Webinar Series
    • Asset Reliability @ Work
  • Articles
    • CRE Preparation Notes
    • on Leadership & Career
      • Advanced Engineering Culture
      • Engineering Leadership
      • Managing in the 2000s
      • Product Development and Process Improvement
    • on Maintenance Reliability
      • Aasan Asset Management
      • CMMS and Reliability
      • Conscious Asset
      • EAM & CMMS
      • Everyday RCM
      • History of Maintenance Management
      • Life Cycle Asset Management
      • Maintenance and Reliability
      • Maintenance Management
      • Plant Maintenance
      • Process Plant Reliability Engineering
      • ReliabilityXperience
      • RCM Blitz®
      • Rob’s Reliability Project
      • The Intelligent Transformer Blog
    • on Product Reliability
      • Accelerated Reliability
      • Achieving the Benefits of Reliability
      • Apex Ridge
      • Metals Engineering and Product Reliability
      • Musings on Reliability and Maintenance Topics
      • Product Validation
      • Reliability Engineering Insights
      • Reliability in Emerging Technology
    • on Risk & Safety
      • CERM® Risk Insights
      • Equipment Risk and Reliability in Downhole Applications
      • Operational Risk Process Safety
    • on Systems Thinking
      • Communicating with FINESSE
      • The RCA
    • on Tools & Techniques
      • Big Data & Analytics
      • Experimental Design for NPD
      • Innovative Thinking in Reliability and Durability
      • Inside and Beyond HALT
      • Inside FMEA
      • Integral Concepts
      • Learning from Failures
      • Progress in Field Reliability?
      • Reliability Engineering Using Python
      • Reliability Reflections
      • Testing 1 2 3
      • The Manufacturing Academy
  • eBooks
  • Resources
    • Accendo Authors
    • FMEA Resources
    • Feed Forward Publications
    • Openings
    • Books
    • Webinars
    • Journals
    • Higher Education
    • Podcasts
  • Courses
    • 14 Ways to Acquire Reliability Engineering Knowledge
    • Reliability Analysis Methods online course
    • Measurement System Assessment
    • SPC-Process Capability Course
    • Design of Experiments
    • Foundations of RCM online course
    • Quality during Design Journey
    • Reliability Engineering Statistics
    • Quality Engineering Statistics
    • An Introduction to Reliability Engineering
    • An Introduction to Quality Engineering
    • Process Capability Analysis course
    • Root Cause Analysis and the 8D Corrective Action Process course
    • Return on Investment online course
    • CRE Preparation Online Course
    • Quondam Courses
  • Webinars
    • Upcoming Live Events
  • Calendar
    • Call for Papers Listing
    • Upcoming Webinars
    • Webinar Calendar
  • Login
    • Member Home

by Fred Schenkelberg Leave a Comment

The Exciting World of Warranty Terms

The Exciting World of Warranty Terms

Here’s a short list of terms related to warranty management. Often is the words we use that matter and understanding the language of warranties is one step in mastering warranty management.

Warranty

A promise made to the buyer of an item that the manufacturer (seller) will repair or replace the item if necessary within a specific time period.

Implied Warranty

With oral or written sales contracts there is a guarantee that the item sold is fit for it’s intended purpose at the time of sale.

Full Warranty

If the following five statements are true about a warranty’s terms and conditions, it is a full warranty:

  1. You do not limit the duration of implied warranties.
  2. You provide warranty service to anyone who owns the product during the warranty period; that is, you do not limit coverage to first purchasers.
  3. You provide warranty service free of charge, including such costs as returning the product or removing and reinstalling the product when necessary.
  4. You provide, at the consumer’s choice, either a replacement or a full refund if, after a reasonable number of tries, you are unable to repair the product.
  5. You do not require consumers to perform any duty as a precondition for receiving service, except notifying you that service is needed unless you can demonstrate that the duty is reasonable.

United States Federal Trade Commission (FTC) https://www.ftc.gov/tips-advice/business-center/guidance/businesspersons-guide-federal-warranty-law#titling viewed 11/1/2015.

Limited Warranty

If any of the above five statements under the Full Warranty definition are false, then it is a limited warranty.

Mixed Warranty

A warranty that may have portions of a system covered by a limited warranty and other elements of the system covered by a full warranty.

For example, a passenger vehicle may have a full coverage for the engine and drive train, and limited warranty for everything else.

Express warranty

A written warranty that may be full, limited or mixed. Under the US Magnuson-Moss Warranty Act, consumer products sold for over $15 require an express warranty.

United States Federal Trade Commission (FTC) https://www.ftc.gov/tips-advice/business-center/guidance/businesspersons-guide-federal-warranty-law#Magnuson-Moss viewed 11/1/2015.

Extended Warranty

A service agreement, contract or agreement (not really a warranty) that extends or augments all or elements of an item’s original warranty.

An extended warranty may be offered by the retailer, manufacturer, or a 3rd party (warranty administrator or service company).

As-is Warranty

A term to disclaim some implied warranty. It means the seller or manufacturer does not provide a warranty for the item being sold. The buyer pays the cost of repair or replacement under this agreement.

Tie-In Sales Provisions

Generally not allowed under the Magnuson-Moss Warranty Act for consumer goods. A tie-in sales provision requires a consumer to buy an item or service from a specific company to keep the warranty coverage.

Deceptive Warranty

Obviously, warranties must not contain deceptive or misleading terms.

You cannot offer a warranty that appears to provide coverage but, in fact, provides none. For example, a warranty covering only “moving parts” on an electronic product that has no moving parts would be deceptive and unlawful. Similarly, a warranty that promised service that the warrantor had no intention of providing or could not provide would be deceptive and unlawful.

United States Federal Trade Commission (FTC) https://www.ftc.gov/tips-advice/business-center/guidance/businesspersons-guide-federal-warranty-law#Magnuson-Moss viewed 11/1/2015.

Filed Under: Articles, CRE Preparation Notes, Reliability Management Tagged With: Warranty Management

« Why Should a Supplier Work Harder For You?
A Brief Introduction to HALT »

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

CRE Preparation Notes

Article by Fred Schenkelberg

Join Accendo

Join our members-only community for full access to exclusive eBooks, webinars, training, and more.

It’s free and only takes a minute.

Get Full Site Access

Not ready to join?
Stay current on new articles, podcasts, webinars, courses and more added to the Accendo Reliability website each week.
No membership required to subscribe.

  • CRE Preparation Notes
  • CRE Prep
  • Reliability Management
  • Probability and Statistics for Reliability
  • Reliability in Design and Development
  • Reliability Modeling and Predictions
  • Reliability Testing
  • Maintainability and Availability
  • Data Collection and Use

© 2023 FMS Reliability · Privacy Policy · Terms of Service · Cookies Policy

This site uses cookies to give you a better experience, analyze site traffic, and gain insight to products or offers that may interest you. By continuing, you consent to the use of cookies. Learn how we use cookies, how they work, and how to set your browser preferences by reading our Cookies Policy.