A warranty is simply a promise that a particular product or service will either meet a given standard, or otherwise the promisor will remedy the failure: “Complete satisfaction guaranteed, or contact us within 30 days of purchase and we'll give you your money back!” is an example. Unfortunately, however, just getting your money back might not be enough to compensate you – if you an iron, for example, and it malfunctions and ruins an expensive garment, you might need additional compensation to make you whole. If you buy vitamins and they make you sick, a full refund won't pay your doctor bills. This kind of compensation is available under the law, but if your warranty does not specifically address issues like these it could get complex (and that means higher legal bills).



If you are the one offering a warranty, then it would be smart to include a disclaimer (such my disclaimer above) setting limits on what you are willing to remedy if the product or service fails to perform as warranted. These kinds of limits are not necessarily enforceable, however, so contact an attorney before drafting any disclaimers.

Buyers need to beware of ambiguous, legalistic language like “Vendor hereby warrants that the product will function substantially in compliance with applicable industry standards.” What does “substantially in compliance” really mean? Exactly how much is “substantial”? And what industry standards are being referred to here? Are they written down, or just “commonly understood”? Which industry standards are “applicable”, and which are not? These are terms that your lawyer will love to hear, because he can fight about them for hours in court – he'll make money while your legal fees mount. If you don't understand a particular sentence of legalese, get it translated into English.

DISCLAIMER: THE ARTILCE IS OFFERED FOR REFERENCE PURPOSES ONLY AND IS NOT INTENDED TO CONSTITUTE LEGAL ADVICE. PLEASE CONSULT AN ATTORNEY WITH ANY QUESTIONS.