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Below are some of the most common reasons warranties are invalidated by merchants: The warranty period has expired. The defect or part is not covered. The product failure is due to misuse or lack of proper maintenance.

The representations and warranties that are signed in the purchase agreement survive the closing when you sell your business. In most purchase agreements, the seller indemnifies the buyer, and a breach of a representation would be subject to indemnification.

If the manufacturer issues the warranty, it will most likely honor it. When a company goes out of business, its warranties and services often die unless other agreements have been made. If you have unused gift cards for a closed business, bankruptcy filings will likely determine if and how they can be used or claimed.

Unless the warranty is being provided by a third-party company, then it goes POOF, along with the company that went out of business. Not always - but frequently - a new owner will honor the warranty.

Federal law prohibits you from disclaiming implied warranties on any consumer product if you offer a written warranty for that product (see What the Magnuson-Moss Act Requires) or sell a service contract on it (see Offering Service Contracts).

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.

There are express and implied warranties, both of which are legally binding commitments. In contracts, a warranty is a stipulation that makes part of the contract. Therefore, the warrantor must strictly comply with the warranty. Otherwise, there would be a breach of warranty.

When talking to your customers about their options, be straightforward and clear. Explain what limited or manufacturer warranties cover and how extended warranty or accident protection plans can fill in the gaps. Give them all the information they need to make the decision that's right for them.

Provincial and territorial sales laws cover implied warranties. Generally, they state that products must be fit for the purposes for which they are sold. Be aware that the application of implied warranties is subject to legal interpretation—you may have to go to court to enforce your rights.

In a positive warranty experience, you should clearly understand the terms of the plan, the various associated costs and the value of the coverage you're receiving. Too many claim filings get denied because of “gotcha” clauses—small details in the plan terms that prevent your claim from getting approved.

ing to Option Consommateurs, large stores usually honour their warranties in-house, while small stores normally sub-contract with another company. Most manufacturers also sell their own extended warranty through authorized dealers.

Generally, there is no specified duration for implied warranties under state laws. However, the state statutes of limitations for breach of either an express or an implied warranty are generally four years from date of purchase.

Complain to the Better Business Bureau and to your state attorney general or consumer protection office. If all else fails, sue for damages. No one wants to go to small-claims court, but a warranty is a contract that holds up in court. For expensive products, look into contacting a consumer attorney.

Sue in Court A warranty is a contract. When your warranty company refuses to honor the terms of a warranty, you may have a claim for breach of contract. The amount allowed in small claims varies from state to state, but for most products, you can sue in small claims court.

Complain to the Better Business Bureau and to your state attorney general or consumer protection office. If all else fails, sue for damages. No one wants to go to small-claims court, but a warranty is a contract that holds up in court. For expensive products, look into contacting a consumer attorney.