1 - Hoardo, Inc. manufactures industrial fans. It sells the fans to commercial b
ID: 377691 • Letter: 1
Question
1 - Hoardo, Inc. manufactures industrial fans. It sells the fans to commercial buyers such as stores and factories. It provides a standard one-year warranty on its products. Recently, Lootwo Mfrg. Co. purchased five fans for a total of $2300. One of the fans failed fifteen months later in 2014. Hoardo refused to fix the fan or offer a replacement because the warranty expired. Lootwo claims the Hoardo warranty is invalid under the federal Magnuson-Moss Warranty Act because Hoardo did not describe it as "limited". The alleged non-compliance means the Act requires Hoardo to provide a full warranty on its fan?
Does the Act and its provisions apply to Hoardo, Inc.? If we assume the law applies to the seller, is Lootwo entitled to the remedy of an unrestricted warranty?
Explanation / Answer
Magnuson-Moss Warranty Act mandates a warranty statement to be mentioned as "Full" or "Limited", and Hoardo, Inc. failed to mention this on its warranty card. However, the non-compliance of Act provisions do not force Hoardo, Inc. to provide a full warranty on its fan.
Hoardo, Inc. issued a standard one-year warranty on its products implying that any claims will be settled within this one year period only. Since the warranty was for only one year, it automatically implies "Limited" warranty since "Full" warranty cannot have an implied limited period.
The claim by Lootwo Mfrg. Co. is not valid since it was outside the limited one year warranty offered by Hoardo, Inc.
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