Apple Product Warranties & What Warrenties Really Mean

Warranties were introduced into legal transactions so that the vendor could assure the consumers that certain condition pertaining to their product or service would be met. A warranty protects buyers from being mislead and if in fact they are mislead, warranties give the buyer the ability to seek remedial compensation.  The parties involved in Apple’s One (1) Year Limited Warranty for the 3G I Phone are Apple, Inc. and the consumer.

The Uniform Commercial Code is a set of laws that are used to govern the commercial transactions that go on in the United States. This code applies to the sale of goods as well are contracts, leases, and loans. The National Conference of Commissioners initially created the UCC. Although it is not a federal law, each of the 50 state’s legislature has either adopted the code verbatim or enacted a modified version.  (U.S. Small Business Administration)

Implied warranty applies to the transaction and the understanding of the buyer rather than the express representation of the party selling the product. Implied warranties are not based on inherent fault being present but rather on the public policy to protect consumers. Implied warranties protect the consumer regardless of whether or not there is a written sales contract. Implied warranties don’t offer specifics about the product.  Apple “warrant(‘s their) product against defects in material and workmanship under normal use for a period of one (1) year from the date of retail purchase.”  (Apple, Inc.)

Express warranties are a verbal or written agreement that the voluntary statements made by the manufacturer about the product being purchased are truthful and reliable. Express warranties have the same effect as implied warranties but Section 2-317 of the Uniform Commercial Code states that express warranties displace inconsistent implied warranties.” (Noonan)  Express warranties are initiated by the seller when they describe their goods. “The doctrine of parol evidence excludes evidence of oral representations under some circumstances when those representations are inconsistent with the written contract.”  (Noonan)

Only written warranties are covered under the Magnuson-Moss Warranty Act. The Magnuson-Moss Warranty Act was passed by Congress in 1975 and “is a federal law that governs consumer product warranties.” (Department of Consumer Protection) The act requires that manufacturers provide customers with detailed warranty coverage. The act is meant to give consumers a chance to know what to expect if something were to go wrong with the product. It also gives the customer a chance to compare warranties before committing to a purchase. The act encourages companies to promote sales on the basis of the warranty coverage they are offering. Most importantly, the act makes the pursuit of remedy for breach of contract easier.  

The implied warranty of merchantability means that the product being bought will meet the expectations of an ordinary buyer. “To the extent permitted by law, Apple specifically disclaims any and all statutory or implied warranties, including, without limitation, warranties of merchantability…” (Apple, Inc.) Apple has tried to keep from being covered by the UCC as well as possible, but if a state law says that they must conform to certain rules, Apple wouldn’t have a choice. They go on to talk about what they would do “if apple cannot lawfully disclaim… implied warranties” (Apple, Inc.) The UCC governs implied warranties, express warranties, and the extent to which sellers can disclaim different, or all, types of warranties.

In a warranty, a disclaimer is any statements intended to delimit the obligations and scope of rights that may be enforced otherwise. The term disclaimer generally implies that the presented situation involves some level of risk, waiver, or uncertainty.  A seller is able to disclaim warranties, but the UCC regulates the disclaimer process. Federal safety specifications, federal warranty laws, and state consumer protection laws constrain the ability that sellers have to disclaim a warranty. The mere presence of a disclaimer does not guarantee that its terms will be recognized and enforced if a legal dispute arises. Legal considerations can render that a disclaimer is void either in part or in whole.

Apple promises to provide several services as a result of different circumstances in the warranty. If a valid claim is filed within the warranty period for a hardware defect, Apple will either “repair the hardware defect at no charge,… exchange the product with a product that is new or equivalent to new… or… refund the purchase price of the product.” (Apple, Inc.) They state that “a replacement product or part,… assumes the remaining warranty of the original product or ninety (90) days from the date of replacement or repair, whichever provides longer coverage.” (Apple, Inc.) I believe that the terms of this warranty are fair to the customer because, within the one year period, Apple is willing to take responsibility for anything that happens to the phone that is their fault. If the year is almost up, they are even willing to extend it up to an additional ninety days. This seems very reasonable.  Apple also has a DIY service where they will send the customer a new or refurbished product or parts to enable them to service or exchange the product. I think that offering mail service is extremely helpful to the customer, especially since it is at no charge to them.

Several exclusions and limitations are laid out in the warranty. “Apple does not warrant that the operation of the product will be uninterrupted or error-free” (Apple, Inc.), which would make me a little nervous as a prospective buyer. I wouldn’t want to buy anything that I couldn’t exchange if it had constantly interrupted service. Apple also says that they will not cover damage caused by a non-Apple product.  With all of the universal chargers that are available for different phones today, I would want to be able to use one and trust that if a problem arises, my phone would still be covered under its warranty.   

In conclusion, I believe that there are both positive and negative aspects of the warranty in regards to the customer. I think that I personally would make the decision to purchase the phone regardless of some of the things that I didn’t like about the warranty. Overall, the warranty seems beneficial and fair to the consumer. It’s also nice to know that you, as the consumer, are backed by tons of laws that look out for your best interest in these situations whether or not the warranty has a disclaimer to the contrary.

 

Apple, Inc. "Apple One (1) Year Limited Warrany." 30 April 2009. Apple. 30 September 2010 <http://images.apple.com/legal/warranty/docs/070808_iphone_Warranty.pdf>.

Department of Consumer Protection. Magnuson-Moss Warranty Act. 6 April 2010. 30 September 2010 <http://www.ct.gov/dcp/cwp/view.asp?a=1629&Q=431058&PM=1>.

Noonan, Rinke. Law for Laymen. 2009. 30 September 2010 <http://www.rnoon.com/law_for_laymen/contracts/disclaimers.html>.

U.S. Small Business Administration. Uniform Commercial Code (UCC). 25 August 2010. 30 September 2010 http://www.business.gov/business-law/ucc/.