Product Warranty for Home Improvement: Rights & Issues

Introduction to Product Warranty

Home improvement products are among the most common commodities in the market from which consumers demand substantial warranty protection. Because these products — electrical and non-electric appliances, home furniture, and materials and services provided for home improvements — are expected to endure within the home over many years, consumers hold manufacturers to a high standard of reliability.

In general, product warranty, across virtually any type of transaction, is closely tied to product liability. Consumers expect that a product will only fail to serve its purpose due to natural wear after prolonged use, or because of damage caused by the consumer's own failure to maintain it. Outside of these two circumstances, product reliability is assumed. When that reliability is not delivered, product warranty exists to protect consumers' right to quality goods.

Product warranty makes manufacturers — and any other party responsible for delivering a quality product — liable for defects in the product or for damages the product may cause. Consequently, product liability is embedded within product warranty, and in most consumer law these two concepts go hand in hand. A warranty guarantees that the responsible parties, as sources of the products, will be held accountable should any product-related problem arise for the consumer. The European Journal of Marketing defines product liability, as a measure of product warranty, in the following terms:

"Products liability is a general term that covers the rights of redress that are provided to persons or parties who suffer some form of damage or injury due to lack of contractual performance or lack of care on the part of those involved in the supplies, manufacture, distribution, and sale of product."

In the interest of consumer rights, the law recognizes warranty as a means of guaranteeing honesty and fairness to both trading parties — the consumers and the sellers. From the perspective of the product provider, such as the manufacturer, the Federal Trade Commission defines product warranty as follows:

What Is Inside the Product Warranty?

"Generally, a warranty is your promise, as a manufacturer or seller, to stand behind your product. It is a statement about the integrity of your product and about your commitment to correct problems when your product fails."

From the consumer's perspective, product warranty serves a complementary purpose: it guarantees that consumers receive the correct and quality products they paid for, and it protects them from irresponsible manufacturers.

Many consumer product warranty laws cover different situations in which consumers are guaranteed the right to quality products, and home improvement products are similarly covered by such laws. In practice, however, most of these laws are written in general terms, thereby covering a wide range of cases. It is important to note, however, that there are also limitations on where the laws apply. For instance, as indicated in the Consumer Products Warranty Law of New Brunswick:

"The Consumer Product Warranty and Liability Act (CPWALA) applies to a wide range of cases. However, it does not apply in every case. It applies only to certain kinds of goods and to certain kinds of suppliers, and the extent of its coverage may vary depending on the category of buyer (or other affected person) and the kind of transaction involved."

Product warranty may apply to different kinds of transactions. The Consumer Products Warranty Law of New Brunswick lists the following as general transaction types suggested for coverage under most product warranty laws:

Benefits of Warranty for Consumers and Manufacturers

sales; leases; barters or exchanges; consumer products supplied under contracts for services; consumer products supplied under contracts for labor and materials; and dangerously defective consumer products, whether supplied by contract or by any other means (e.g., gift or sample).

Product warranty favors both consumers and manufacturers. It benefits consumers by ensuring they receive products that are worth the price they paid. Moreover, warranty protects consumers from unscrupulous manufacturers who may have used substandard materials in production. In the case of home products such as furniture, durability is especially important since such items are intended for long-term domestic use. With product warranty in place, consumers who encounter problems with purchased products have a recognized and enforceable right in the home improvement industry.

Although warranty may initially appear to be a disadvantage to manufacturers, it provides meaningful benefits to them as well. Because of consumer product laws, manufacturers are obliged to deliver quality goods from the outset, thereby reducing the likelihood of returns. This obligation, in turn, creates an opportunity to build a strong reputation in the industry and ultimately supports better financial returns.