What is an express warranty?

An express warranty is a contractual guarantee that a specific statement is true and is supported by legally enforceable consequences should the promise be broken. Express warranties are generally used in commercial transactions, such as real estate purchases or sales of goods and services.

What constitutes an express warranty?

Express warranties are distinguished from other types of warranties by their specificity. They are specific promises made by a seller either  orally or in writing. These promises can include descriptions of items or services, representations of goods in samples or models, and statements of fact. For instance, if you buy a car and the dealer promises you that the car you bought comes with a CD player but you are given a car without one, then the dealer has broken the express warranty made to you.

Exaggerated statements or opinions are not considered express warranties. For example, if an advertisement for shoes says, “These are the best pair of shoes you’ll ever own,” that is considered puffing or the seller’s exaggerated opinion of the product. As such, if you buy the shoes and decide they are not the best shoes you’ve ever owned, you cannot hold the seller to that proclamation because it is an opinion and not an express warranty.

How to enforce an express warranty

Many companies that sell goods and services often provide customers with a written list of warranties. To take full advantage of express warranties, be sure to read them carefully so you know all of the terms and conditions, such as when they expire and whether there are any exclusions. If you have issues regarding express warranties, try to work it out with the seller directly by discussing your concerns. If the seller is a large retail company, you may need to write a letter to its corporate headquarters describing the problem. You may also want to contact your state’s consumer protection or Attorney General’s office to help resolve the matter.

In order to enforce an express warranty, you may want to seek the advice of a contract or commercial attorney who can go over the warranty, as well as any specific state laws that may be applicable in order to determine the legal remedies available to you.

Case Studies: Harnessing Insurance Coverage for Express Warranties

Case Study 1: Product Liability Insurance for Techtronics Inc.

Techtronics Inc. is a leading manufacturer of electronic devices. To assure their customers of product quality and functionality, they provide express warranties for their electronic products. To protect themselves from potential warranty-related claims, Techtronics Inc. obtains product liability insurance from SureShield Insurance.

This insurance coverage safeguards the company in case their products fail to meet the specifications outlined in the express warranties, resulting in financial losses or damages to customers. With product liability insurance from SureShield, Techtronics Inc. can have peace of mind knowing they have financial protection in the event of warranty-related claims.

Case Study 2: Professional Liability Insurance for Ace Consultants

Ace Consultants is a prominent consulting firm that offers specialized consulting services to their clients. As part of their service contracts, they provide express warranties regarding the accuracy and effectiveness of their consulting solutions. Recognizing the potential risks associated with professional services, Ace Consultants secures professional liability insurance, underwritten by Elite Insurance Company.

This insurance coverage protects the company from financial losses or damages if their services fail to meet the standards set forth in the express warranties, leading to claims of professional negligence. With professional liability insurance from Elite Insurance, Ace Consultants can focus on delivering high-quality services while mitigating the potential financial consequences of warranty-related claims.

Case Study 3: Business Interruption Insurance for Global Retailers

Global Retailers is a multinational retail corporation known for its extensive product offerings. They provide express warranties on the products they sell, assuring customers of their quality and durability. However, unforeseen events such as natural disasters or fires can disrupt their operations, potentially leading to a loss of revenue and breaches of the express warranties.

To safeguard against these risks, Global Retailers secures business interruption insurance from TrustGuard Assurance. This insurance coverage provides financial protection in case the business is temporarily unable to operate due to covered events, compensating for the lost income and helping cover ongoing expenses during the interruption.

With business interruption insurance from TrustGuard Assurance, Global Retailers can mitigate the financial impact of unforeseen events on their ability to fulfill express warranties and maintain customer satisfaction.