Does a company have to inform the owner about warranty refusal?

Full question:

Does a Company have a legal obligation to inform the owner of a refusal to honor warranty. Code & statue

• Category: Warranties
• Date: 04/07/2025
• State: Idaho

Answer:

The obligation of a company to inform an owner about a refusal to honor a warranty depends on the type of product or service involved. Generally, warranties can be express or implied. An express warranty is created through specific promises or affirmations made by the seller regarding the product, while implied warranties are automatically included in sales transactions under the Uniform Commercial Code (UCC).

Under the UCC, sellers, including manufacturers and retailers, can be held liable for breaches of warranty. Consumers, including purchasers and users, can sue for breaches. There are implied warranties, such as the warranty of merchantability, which ensures that goods are fit for ordinary use, and the warranty of fitness for a particular purpose, which applies when the seller knows the specific use intended by the buyer.

If the warranty is not honored, particularly in the case of defective automobiles, specific laws like the Idaho Lemon Law and the federal Magnuson-Moss Warranty Act may apply. These laws require manufacturers to repair, refund, or replace defective vehicles after a reasonable number of repair attempts. The Idaho Lemon Law can provide compensation, including refunds or replacements, if the vehicle cannot be repaired satisfactorily.

For example, Idaho Statutes Title 48, Chapter 9 outlines the manufacturer's duties regarding warranties and includes provisions for refunds and replacements if the warranty is not honored (Idaho Stat. § 48-901 et seq.). If the refusal to honor a warranty contradicts the purchase agreement or if misinformation was provided by a company employee, this may constitute fraud, allowing for potential legal remedies.

In practice, if a company refuses to honor a warranty, the owner may have limited options for enforcement, as pursuing legal action can be costly. However, escalating the issue to corporate management may help resolve customer dissatisfaction.