Sheehan & Associates, P.L.C.

Not addressing warranty issues may lead to business litigation

A successful business owner, whether in Michigan or elsewhere, knows that he or she needs to stand behind his or her products and services in order to build a strong reputation and to grow his or her customer base. Many may choose to do this by offering and honoring both written and implied warranties. However, warranty claims that are not addressed to a customer's satisfaction may result in a business litigation claim.

Written warranties are commonly utilized by businesses of all types to guarantee the life expectancies of products and maintain customer satisfaction. Implied warranties, on the other hand, are simply based upon the expectations customers have for products or services. As consumer expectations may vary, it may seem impossible to live up to every individual's definition of an implied warranty.

There are two basic types of implied warranties -- those of merchantability and those of fitness. Those pertaining to merchantability essentially cover products as long as they are used solely for the purpose for which they were originally intended. The implied warranty of fitness, on the other hand, can cover products that are recommended by a business owner or employee for certain purposes but ultimately fail to live up to any assurances offered.

Offering and honoring warranties, both written and implied, is not only good for business but can help prevent some legal issues down the line. If a customer does choose to pursue business litigation over what he or she claims to be a breach of warranty, company owners in Michigan and elsewhere can seek legal assistance to fight or settle such complaints. To help avoid this issue in general, it is possible to review current written warranties and discuss the implied warranties that could apply to one's products and/or services with an experienced business attorney.

Source: FindLaw, "What is an Implied Warranty?", Accessed on June 13, 2015

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