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Read more about the EDGE Tech Corp / IBM Service
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The Magnuson-Moss Warranty Act is the federal law that
governs consumer product warranties. Passed by Congress in
1975, the Act requires manufacturers and sellers of consumer
products to provide consumers with detailed information about
warranty coverage. In addition, it affects both the rights of
consumers and the obligations of warrantors under written
warranties. lap top
To understand the Act, it is useful to be aware of
Congress intentions in passing it. First, Congress wanted
to ensure that consumers could get complete information about
warranty terms and conditions. By providing consumers with a
way of learning what warranty coverage is offered on a product
before they buy, the Act gives consumers a way to know what to
expect if something goes wrong, and thus helps to increase
customer satisfaction. refurbished
Second, Congress wanted to ensure that consumers could
compare warranty coverage before buying. By comparing,
consumers can choose a product with the best combination of
price, features, and warranty coverage to meet their individual
needs. memory
Third, Congress intended to promote competition on the basis
of warranty coverage. By assuring that consumers can get
warranty information, the Act encourages sales promotion on the
basis of warranty coverage and competition among companies to
meet consumer preferences through various levels of warranty
coverage. intel
Finally, Congress wanted to strengthen existing incentives
for companies to perform their warranty obligations in a timely
and thorough manner and to resolve any disputes with a minimum
of delay and expense to consumers. Thus, the Act makes it
easier for consumers to pursue a remedy for breach of warranty
in the courts, but it also creates a framework for companies to
set up procedures for resolving disputes inexpensively and
informally, without litigation. as400
What the Magnuson-Moss Act Does
Not Require
In order to understand how the Act affects you as a
businessperson, it is important first to understand what the
Act does not require. First, the Act does not require any
business to provide a written warranty. The Act allows
businesses to determine whether to warrant their products in
writing. However, once a business decides to offer a written
warranty on a consumer product, it must comply with the
Act. averatec
Second, the Act does not apply to oral warranties. Only
written warranties are covered. Third, the Act does not apply
to warranties on services. Only warranties on goods are
covered. However, if your warranty covers both the parts
provided for a repair and the workmanship in making that
repair, the Act does apply to you. Finally, the Act does not
apply to warranties on products sold for resale or for
commercial purposes. The Act covers only warranties on consumer
products. This means that only warranties on tangible property
normally used for personal, family, or household purposes are
covered. (This includes property attached to or installed on
real property.) Note that applicability of the Act to a
particular product does not, however, depend upon how an
individual buyer will use it. hardware
The following section summarizes what the Magnuson-Moss
Warranty Act requires warrantors to do, what it prohibits them
from doing, and how it affects warranty disputes. dual xeon
What the Magnuson-Moss Act
Requires
In passing the Magnuson-Moss Warranty Act, Congress
specified a number of requirements that warrantors must meet.
Congress also directed the FTC to adopt rules to cover other
requirements. The FTC adopted three Rules under the Act, the
Rule on Disclosure of Written Consumer Product Warranty Terms
and Conditions (the Disclosure Rule), the Rule on Pre-Sale
Availability of Written Warranty Terms (the Pre-Sale
Availability Rule), and the Rule on Informal Dispute Settlement
Procedures (the Dispute Resolution Rule). In addition, the FTC
has issued an interpretive rule that clarifies certain terms
and explains some of the provisions of the Act. This section
summarizes all the requirements under the Act and the
Rules. storage
The Act and the Rules establish three basic requirements
that may apply to you, either as a warrantor or a seller. As a
warrantor, you must designate, or title, your written warranty
as either full or limited As a
warrantor, you must state certain specified information about
the coverage of your warranty in a single, clear, and easy-to
read document. As a warrantor or a seller, you must ensure that
warranties are available where your warranted consumer products
are sold so that consumers can read them before buying. The
titling requirement, established by the Act, applies to all
written warranties on consumer products costing more than $10.
However, the disclosure and pre-sale availability requirements,
established by FTC Rules, apply to all written warranties on
consumer products costing more than $15. Each of these three
general requirements is explained in greater detail in the
following chapters. seagate
What the Magnuson-Moss Act Does
Not Allow
There are three prohibitions under the Magnuson-Moss Act.
They involve implied warranties, so-called tie-in
sales provisions, and deceptive or misleading warranty
terms. Disclaimer or Modification of Implied Warranties The Act
prohibits anyone who offers a written warranty from disclaiming
or modifying implied warranties. This means that no matter how
broad or narrow your written warranty is, your customers always
will receive the basic protection of the implied warranty of
merchantability. This is explained in Understanding
Warranties. computer sales
There is one permissible modification of implied warranties,
however. If you offer a limited written warranty,
the law allows you to include a provision that restricts the
duration of implied warranties to the duration of your limited
warranty. For example, if you offer a two-year limited
warranty, you can limit implied warranties to two years.
However, if you offer a full written warranty, you
cannot limit the duration of implied warranties. This matter is
explained in Titling Written Warranties as Full or
Limited . computer hardware
If you sell a consumer product with a written warranty from
the product manufacturer, but you do not warrant the product in
writing, you can disclaim your implied warranties. (These are
the implied warranties under which the seller, not the
manufacturer, would otherwise be responsible.) But, regardless
of whether you warrant the products you sell, as a seller, you
must give your customers copies of any written warranties from
product manufacturers. printers
Tie-In Sales
Provisions
Generally, tie-in sales provisions are not allowed. Such a
provision would require a purchaser of the warranted product to
buy an item or service from a particular company to use with
the warranted product in order to be eligible to receive a
remedy under the warranty. The following are examples of
prohibited tie-in sales provisions. technology
In order to keep your new Plenum Brand Vacuum Cleaner
warranty in effect, you must use genuine Plenum Brand Filter
Bags. Failure to have scheduled maintenance performed, at your
expense, by the Great American Maintenance Company, Inc., voids
this warranty. mainframe
While you cannot use a tie-in sales provision, your warranty
need not cover use of replacement parts, repairs, or
maintenance that is inappropriate for your product. The
following is an example of a permissible provision that
excludes coverage of such things. samsung
While necessary maintenance or repairs on your AudioMundo
Stereo System can be performed by any company, we recommend
that you use only authorized AudioMundo dealers. Improper or
incorrectly performed maintenance or repair voids this
warranty. computer repair
Although tie-in sales provisions generally are not allowed,
you can include such a provision in your warranty if you can
demonstrate to the satisfaction of the FTC that your product
will not work properly without a specified item or service. If
you believe that this is the case, you should contact the
warranty staff of the FTC s Bureau of Consumer Protection
for information on how to apply for a waiver of the tie-in
sales prohibition. used computers
Deceptive Warranty Terms
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. network
How the Magnuson Moss Act May
Affect Warranty Disputes
Two other features of the Magnuson-Moss Warranty Act are
also important to warrantors. First, the Act makes it easier
for consumers to take an unresolved warranty problem to court.
Second, it encourages companies to use a less formal, and
therefore less costly, alternative to legal proceedings. Such
alternatives, known as dispute resolution mechanisms, often can
be used to settle warranty complaints before they reach
litigation. digital cameras
Consumer Lawsuits
The Act makes it easier for purchasers to sue for breach of
warranty by making breach of warranty a violation of federal
law, and by allowing consumers to recover court costs and
reasonable attorneys fees. This means that if you lose a
lawsuit for breach of either a written or an implied warranty,
you may have to pay the customer s costs for bringing the
suit, including lawyer s fees. desktops
Because of the stringent federal jurisdictional requirements
under the Act, most Magnuson-Moss lawsuits are brought in state
court. However, major cases involving many consumers can be
brought in federal court as class action suits under the
Act. cognos
Although the consumer lawsuit provisions may have little
effect on your warranty or your business, they are important to
remember if you are involved in warranty disputes. hosting
Alternatives to Consumer
Lawsuits
Although the Act makes consumer lawsuits for breach of
warranty easier to bring, its goal is not to promote more
warranty litigation. On the contrary, the Act encourages
companies to use informal dispute resolution mechanisms to
settle warranty disputes with their customers. Basically, an
informal dispute resolution mechanism is a system that works to
resolve warranty problems that are at a stalemate. Such a
mechanism may be run by an impartial third party, such as the
Better Business Bureau, or by company employees whose only job
is to administer the informal dispute resolution system. The
impartial third party uses conciliation, mediation, or
arbitration to settle warranty disputes. netfinity
The Act allows warranties to include a provision that
requires customers to try to resolve warranty disputes by means
of the informal dispute resolution mechanism before going to
court. (This provision applies only to cases based upon the
Magnuson-Moss Act.) If you include such a requirement in your
warranty, your dispute resolution mechanism must meet the
requirements stated in the FTC s Rule on Informal Dispute
Settlement Procedures (the Dispute Resolution Rule). Briefly,
the Rule requires that a mechanism must: internet
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Be adequately funded and staffed to resolve all disputes
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Follow written procedures; xseries
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Inform both parties when it receives notice of a
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Gather, investigate, and organize all information
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Provide each party an opportunity to present its side,
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Inform both parties of the decision and the reasons
supporting it within 40 days of receiving notice of a
dispute; rational
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Issue decisions that are not binding; either party must
be free to take the dispute to court if dissatisfied with
the decision (however, companies may, and often do, agree
to be bound by the decision); websphere
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Keep complete records on all disputes; and battery
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Be audited annually for compliance with the Rule. it support
It is clear from these standards that informal dispute
resolution mechanisms under the Dispute Resolution Rule are not
informal in the sense of being unstructured.
Rather, they are informal because they do not involve the
technical rules of evidence, procedure, and precedents that a
court of law must use. western digital
Currently, the FTC s staff is evaluating the Dispute
Resolution Rule to determine if informal dispute resolution
mechanisms can be made simpler and easier to use. To obtain
more information about this review, contact the FTC s
warranty staff. music
As stated previously, you do not have to comply with the
Dispute Resolution Rule if you do not require consumers to use
a mechanism before bringing suit under the Magnuson-Moss Act.
You may want to consider establishing a mechanism that will
make settling warranty disputes easier, even though it may not
meet the standards of the Dispute Resolution Rule. networks
EDGE Server Memory Will Not Void
Your Server Warranty!
The Federal Trade Commission Magnuson-Moss Act protects
consumers. This act passed in 1975 states that tie-in sales
provisions are NOT allowed in consumer warranties.
Manufacturers cannot require consumers to purchase items or
services in order to keep their warranty valid. toner
Essentially, the act states that a warrantor cannot require
the consumer of their product (a server) to buy an additional
product or service (OEM memory) to be used with the original
product in order to maintain the original product warranty. cheap laptops
In other words, you cannot be required to add the server
manufacturer s memory to maintain the warranty on the
system. Also, the server manufacturer cannot state that the
system warranty is void if other brands of
peripherals are used. wholesale
For example: If you purchased ABC computer but chose to use
XYZ brand memory, ABC Company cannot void the warranty or
refuse to provide service on your ABC computer. In addition to
the Magnuson-Moss Act any manufacturer that conditions its
warranty on purchases of its own equipment may violate the
antitrust laws. Will EDGE server memory void my server warranty
NO! If you wanted to put a Duracell battery into a Sony stereo
would it void the warranty on the stereo Or, what if you wanted
to install a Kenwood stereo into your Nissan Maxima would it
void the warranty on your car NO! brother
What if I have an existing service contract with a system
OEM but I want to purchase EDGE server memory to upgrade my
servers No problem! You can install the memory yourself, or
since the OEM is the service provider and might not install our
memory into the servers you could use another service
technician to install the memory. What if I am currently
negotiating a service contract and the OEM tells me I cannot
use third party memory netvista
You are the customer! The OEM will not want to lose the sale
over the memory installation. As a customer you have the right
to choose how you would like your service contract fulfilled.
There are several EDGE Memory customers who have standardized
on a specific OEM for their servers and systems and have
included EDGE brand of memory on their standards list for
components. camera
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