As it applies to motor vehicles, the implied warranty of merchantability is a guarantee that they will operate in a safe condition and be substantially free of defects. Every buyer has the right to assume that a new car, with the exception of minor adjustments, will be mechanically new and factory furnished, operate perfectly, and be free of substantial defects.
For example, a motor home ought to allow its owners to drive around the country in comfort, visit Yellowstone Park, sit beneath the awning, and watch the sunset over the Pacific. It should not start only every other day. It should not smell like an open sewer. The extendable room should not slide out on its own while driving in traffic. If it does not operate in a way consistent with its intended use, it is not merchantable. Continue reading Chapter 9: Warranty and the Broken Promise (Page-05)
Some state lemon laws extend warranties in other ways. For example, California’s Song-Beverly Act extends the written warranty by the number of days the vehicle was unavailable to the consumer because it was in the shop for warranty repairs. If a vehicle were in the shop for a total of forty-five days during the warranty period, the warranty would be extended forty-five days from its original date of expiration.
Implied Warranties
An implied warranty, unlike an express warranty, is not written down anywhere by the manufacturer. The law imposes these obligations on the manufacturer, the seller, or both as a matter of public policy.
If a warranty is not specifically labeled as a limited warranty, Magnuson-Moss treats it as a full warranty. Congress hoped that consumers would buy only products that came with full warranties, so that the power of the marketplace would force manufacturers to give full warranties. Instead, just about every manufacturer gives a limited warranty, so consumers have no real choice. So much for the power of the marketplace!
Manufacturers are the first to admit, quite candidly, that they offer longer written warranties as an advertising strategy, to improve their sales. Clearly, some accountant determined that the increase in sales revenue offsets the increased costs associated with additional warranty repairs and lemon lawsuits.
“A lie is a breach of promise: for whoever seriously addresses his discourse to another, tacitly promises to speak the truth, because he knows that the truth is expected.” -William Paley, 1743-1805
Warranty Overview
At the heart of every lemon law is the manufacturer’s breach of warranty. It is this broken promise that gives consumers the right to receive a replacement or refund if a vehicle is a lemon.
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