The Magnuson-Moss Warranty Act is simply the federal law
that governs and monitors consumer product warranties. The
Magnuson-Moss Warranty Act was passed by Congress in 1975,
and requires manufacturers and sellers of consumer products
to provide their customers with enough detailed information
about their warranty coverage, so as not to fall short of
the lemon law.
The
above Act effects not only the rights of consumers, but
also the obligations of warrantors that are offering written
warranties.
To
understand the Act, it is probably best that the consumer
be aware of Congress' intentions when they first passed
it.
Firstly,
Congress in the initial stages wanted to make sure that
the consumers had access to complete information about
the warranty terms and conditions of a vehicle up front
and in their most honest form. This would achieve that
consumers would have a way of learning and understanding
what warranty coverage is available on a product before
the decision to purchase is in place. The Act provides
consumers with a way to know exactly what they should
expect if something was unfortunate to go wrong, additionally
it also goes a long way in increasing customer satisfaction.
Secondly,
Congress want to make sure that consumers had the availability
to compare warranty coverage's before buying a vehicle,
because with doing this, consumers can compare products
that have the more favorable combination of features,
cost, and warranty coverage to meet their individual needs.
Thirdly,
Congress want to promote competition with warranty coverage
alone. By making sure that consumers can get warranty
information, the Act has practically forced dealers and
manufacturers into hosting sales promotions on the basis
of warranty coverage and this competition among companies
has allowed it to be considerably easier for consumers
to seek various levels of warranty coverage.
Finally,
Congress wanted to strengthen the pre-existing incentives
for companies to perform their warranty obligations in
a timely and efficient manner so that it would be easier
to resolve any consumer disputes with a minimum of delay
and expense.
Due
to this, the Act makes it so much simpler for consumers
to seek a private solution for any breach of warranty
in the courts, while also creating a foundation for companies
to set up good operating procedures for resolving disputes
inexpensively and informally, without litigation. All
of the above information is standard within the industry.
