US Legal Forms
Legal Resources
Questions & Answers
Warranties
Can a credit card be liable for breach of warranty?

Can a credit card be liable for breach of warranty?

Q: What is an example of a product warranty?

An example of a product warranty is a one-year manufacturer's warranty that guarantees a new appliance will be free from defects in materials and workmanship. If the appliance fails within that period, the manufacturer may repair or replace it at no cost to the consumer, as specified in the warranty terms.

Q: What is an example of a breach of warranty?

An example of a breach of warranty is when a seller claims that a car has never been in an accident, but it is later discovered that it has been. This false statement violates the express warranty made at the time of sale, giving the buyer the right to seek remedies under warranty laws.

Q: Does warranty allow replacement?

Yes, warranties typically allow for replacement of a product if it is defective or fails to meet the promised standards. The specific terms of the warranty will dictate the conditions under which a replacement can be requested, including any necessary documentation or time limits.

Full question:

Do you think that a financial product,such as a credit card, could be liable for breach of warranty?

Category: Warranties
Date: 04/07/2025
State: Minnesota

Answer:

A breach of warranty refers to a failure to uphold a promise about a product made by a manufacturer or seller. It includes any false statement or agreement by a seller that is part of the sales contract, which is essential for the contract's validity. Warranties can be express or implied. An express warranty is a specific promise included in the written contract, while an implied warranty is a legal guarantee that exists even if no explicit promises were made. Buyers receive some protection under these warranties.

Warranty protection is governed by the Uniform Commercial Code (UCC), which most states have adopted in part. Additionally, the Magnuson-Moss Warranty—Federal Trade Commission Improvement Act of 1975 sets federal standards for written warranties and service contracts related to consumer products. This Act ensures that written warranties meet specific disclosure and remedy requirements for consumers.

The UCC defines 'consumer goods' as movable items at the time a security interest attaches, excluding money, documents, and certain other items (UCC § 9-313). While a credit card may facilitate payments for goods that come with warranties, the card itself is not considered a good. It represents an agreement between a lender and a borrower for lending and repaying money. The credit agreement outlines each party's responsibilities, and any breach of this agreement is subject to local contract law.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Can a product be replaced under warranty?

Yes, a product can often be replaced under warranty if it is found to be defective or not functioning as promised. Warranties typically outline the conditions under which a product can be repaired or replaced. The specific terms will depend on whether the warranty is express or implied, and consumers should review the warranty documentation for details on coverage and procedures.

What is an example of a product warranty?

How does a credit card warranty work?

Credit card warranties often provide additional protection for purchases made with the card. For example, some credit cards offer extended warranties on items purchased, which can extend the manufacturer's warranty period. However, the credit card itself is not covered under warranty laws, as it is a financial product rather than a consumer good.