| When a warrantor issues a written warranty for a consumer product, the Magnuson-Moss Warranty Act prohibits the warrantor from doing the following things:
(1) The warrantor may not disclaim or modify implied warranties. If a warrantor chooses to issue a written warranty, the Act prohibits the warrantor from disclaiming or modifying any implied warranties created by state law. Therefore, the implied warranty of merchantability, which guarantees that a product will do what it is supposed to do, will apply to the product. The product may be covered by an implied warranty of fitness for a particular purpose if the seller knew that the purchaser was buying the product for a particular purpose.
* Note: If the written warranty is a limited warranty, the warrantor may restrict the duration of any implied warranties to the duration of the written warranty. However, if the written warranty is a full warranty, the warrantor cannot restrict the duration of limited warranties.
(2) The warrantor may not include "tie-in sales" provisions in the warranty. A "tie-in sales" provision requires a purchaser to buy other products or services from a particular company in order to be eligible for warranty rights. For example, a purchaser buys a Romulex computer, accompanied by a written warranty. One provision of the warranty states that the purchaser is required to buy new Romulex software and hardware every month. Another provision says that the purchaser is required to ship the computer to Romulex headquarters for maintenance every two months. The written warranty states that all warranty rights are void if the purchaser fails to comply with either provision. Both provisions are prohibited "tie-in sales" provisions under the Act.
* Note: A warrantor may include a "tie-in sales" provision in a written warranty if the warrantor proves to the Federal Trade Commission that a product will not work properly without particular products or services.
* Note: A written warranty may state that all warranty rights are void if the product is incorrectly repaired by a third party. A warranty may also say that it does not cover any replacement parts that are installed onto the product.
(3) The warrantor may not include deceptive terms in the warranty. The Act prohibits warranty terms that are designed to mislead, deceive, or confuse the purchaser as to what the warranty covers.
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