Understanding Product Warranties

A warranty is a statement of good faith by the manufacturer or distributor of a product that what they sell you is free of known defects or problems and will operate as they say it will. Most warranties are designed to do two things: protect the company from unreasonable demands if they are sued by an unhappy customer and offer the customer a plan of recourse if he or she finds the product doesn’t work or won’t work properly.

The term warranty is essentially the same as what is also known as a guarantee; in fact, both names have the same old North French root word.

“Read one warranty and you’ve read them all,” an associate of mine likes to say. But I don’t think that’s terribly accurate. While almost all product warranties suffer from an overabundance of legalese, there can be quite a bit of difference between what they offer and how they phrase them. Just the difference between hardware and software warranties can be appreciable, since few software companies offer repair or replacement of equipment potentially damaged by hardware, and few hardware companies take responsibility for software issues possibly arising from the use of their devices.

Tip 

When I purchase an important new piece of PC hardware or consumer electronics, I look carefully at the stated coverage period of the warranty. Then I record this information in my date-reminder software so that it alerts me when I’m near the end of my coverage. But, of course, as we all know, nothing ever breaks down until the day after the warranty ends.

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A Cautionary Tale: Keep a Copy

I know it’s a pain but try to save your warranty in a place where you can find it again later.

Several years ago, I bought an expensive PC power supply via mail order from a firm no longer in business that arrived in horrendous condition. The box wasn’t damaged but the unit looked like it had been on the Titanic and was salvaged in time to make it aboard the Hindenburg, only to somehow come back again to ride along with that Mars probe that disappeared into the atmosphere of the red planet.

Because the power supply arrived so damaged, I assumed I could return it and get another unit in good condition. It actually took three phone calls, four e-mails, and a snail mail letter to the corporate office to get them to take the unit for a return.

What did they replace my expensive new power supply with? A used one of far lesser value. When I complained, they pointed me to a copy of their product warranty on their web site that stated, “Unless special exception is granted, all damaged units will be replaced with reconditioned units.”

Huh?

First of all, I wasn’t exercising my warranty because I had never gotten the first unit in a condition in which I could try to use it. Strictly speaking, this doesn’t fall under the warranty but under regular sales.

More importantly, the warranty they pointed me to was something new. When I had purchased my first unit three weeks before, I received a different warranty, with no such provision about replacing a new unit with a reconditioned one. Only the fact that I had made a copy of that original warranty made me successful in arguing with the company that they had to replace a new bad unit with a new good unit.

While you can take such matters to the Better Business Bureau or other consumer organizations, the most effective approach is making a strong case to the company.

Remember, if you don’t want to store all that paper, you can always use a scanner to scan your product warranties and keep them on your computer (with a copy in backup, of course). That’s what I do now, and it works well for me, especially since I always forget to file my actual paperwork.

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Types of Warranties

There are many different types of warranties. An implied warranty is one that is unwritten and based on common law. It stipulates that a customer receive fair value for the money he or she spends. An express warranty is one that is documented and usually included with a product. An express warranty spells out the terms and conditions under which the manufacturer will act in good faith to correct a problem you may encounter with the device or service.

Note 

Most warranties are written based on state laws that conform to a set of uniform guidelines for product merchantability.

According to FindLaw’s web site (www.findlaw.com), whenever a product costs $10 or more to purchase, a company is required to provide either a full or limited warranty for it.

Most warranties included with PC products are ones called limited warranties. While a full warranty offers certain commitments to the customer without restrictions, a limited warranty places limits on such conditions. Federal law prohibits companies from knowingly offering a warranty that may be perceived as deceptive, for example, claiming the customer will get a new replacement unit when the company only ships refurbished units if a defective one is returned.

Before looking at a sample limited warranty, let’s talk about extended warranties, which were briefly touched upon in Chapter 16, “Starting from Scratch the Hard Way.” Extended warranties are offered to extend or enhance the services offered under a normal limited product warranty. For example, you can pay extra and get three years of warranty coverage rather than a single year, or you can pay extra so that all parts and labor are covered rather than just those specified under the warranty.

I always recommend people gauge their likelihood of actually pursuing their warranty against the cost of an extended warranty. Many people buy extended warranties as insurance policies against future problems, and then they forget they are covered or never exercise them at all.

What a Product Warranty Means

Decoding a product warranty can take a few reads and may be easier to understand if you have experience with consumer or contract law to make sense of all the nuances of language.

In a moment, I’ll show you a sample warranty and help you understand what the manufacturer is telling you about their obligations and yours regarding a defective or damaged product.

However, there are some important points you should look for in such warranties, including

  • The time period the warranty covers. There may be more than one time period; for example, you might have a year’s warranty on repair but only 90 days on any needed replacement parts.

  • The terms of recovery or what you can expect from the manufacturer in terms of repair, replacement, or refund.

  • Special limitations that may spell out conditions under which you may operate the product that will remove the warranty coverage.

  • Your responsibilities, which usually include proper notification to the manufacturer of the problem and obtaining a return-to-manufacturer authorization (RMA) number or form before you return the product for repair, replacement, or refund.

  • Your liability, meaning what you may have to pay (for parts, labor, or both) to replace a component if the problem found with the product isn’t one the manufacturer feels it is responsible for.

A Sample Limited Warranty

Let’s look at a sample warranty, this one carved from similar wording appearing in five different product warranties and paraphrased here (names have been excluded to protect the guilty):

[Our company’s] complete obligation under this warranty is limited to the repair or replacement of a part deemed to be defective by our company or its authorized service agents. No third-party evaluations are accepted of defective parts. Only at our sole and individual discretion will a refund of purchase price be tendered under any circumstances.

The customer assumes all liability for the proper use of this product and its appropriate maintenance, and only at [our company’s] option, upon full proof of proper purchase by the customer is repair, replacement, or refund made available to the customer. Such cases must be preceded by appropriate notification to [our company] within the time limits set forth by this warranty. Only if the customer is approved for further consideration should the customer send the product back, at customer’s cost for proper shipping and insurance of said package, to the address provided to said customer, within ninety (90) days of the purchase date.

If third-party software accompanies the distribution of this product, [our company] cannot be held liable for any problems it may cause for the user of that product and its software. Please see any accompanying literature and end-user license that may be included with that so-called third-party software, and contact that company for assistance.

Believe it or not, this is one of the easier-to-read warranties, devoid of the conditions that can make your head begin to pound as you try to understand the meaning behind the words.

In this case, the company is telling you that its only obligation to you, the customer, is to repair or replace a defective part and then only if the company deems that the part is defective. You and/or your PC technician deciding it’s defective may not be good enough.

This warranty specifies that you must return the product at your cost (including any insurance you choose to place on the package you send) to allow the company to make this determination, and this must be done within 90 days of the day you purchased the product. Then, if they rule in your favor, you might get a replacement. This warranty makes refunds sound tough to obtain.

Note 

To be completely fair, in reality, most companies honor their warranties regardless of how many caveats their product disclaimers offer.

But notice that you’re left on your own with any third-party software the manufacturer chooses to include with the product they sell to you. If you have problems with it, you’re shuttled back to the software’s publisher, even though you got it as part of your product package.

Returning a Product Under Warranty

Store return policies vary widely and can change frequently, depending on what other stores in your area are doing or as laws in your area change to provide better (or sadly, sometimes worse) protection for consumers.

Always check the return policy for the particular store from which you buy PC equipment. Most stores will refuse to accept a return if

  • You don’t show full proof of purchase.

  • You return it incomplete, without returning major or valuable components of the product.

  • You bring it back in an outrageous condition or showing damage only you could have caused.

  • The item is marked “clearance” or “all sales final,” and the reason you’re returning it isn’t because it is defective.

Some stores may charge a restocking fee, which may be a flat rate like $15 or $20, or a percentage of the product’s purchase price (between 5 percent and 15 percent). However, regardless of store policy, you should be able to return a defective product without a restocking fee. If the store tries to assess one anyway, ask politely to speak to a manager.

Most stores establish a specific time period for returns. In my experience, this is often no more than 30 days from the day you purchased it and took it from the store or from the day they shipped it to you. Some stores and mail order outlets can be very strict about this, so that even if it took a week or two for your product to arrive at your home or office after it shipped, the clock on returns starts ticking the moment it shipped.

Once you exceed that time period, you’ll need to contact the manufacturer, who may only accept it for return, repair, or refund if you have a condition or problem with the device covered by your warranty.

Warning 

Always try to install and use your new PC hardware as soon as possible after purchase to protect your ability to return it if it’s defective or missing critical components.

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Unhappy Realities of Warranty Exercising

Don’t think of a warranty as a quick fix for defective or malfunctioning hardware, because it’s not. Some companies are very good and will actually ship a replacement to you before you send back the damaged device. Other companies can make you wait weeks and weeks.

Remember the brand-new PC with the dead motherboard I told you about in Chapter 16? It’s been dead for two weeks, and I have yet to get my RMA so I can return the PC to the company to replace the motherboard. They’ve estimated it will take them two weeks to get it back to me repaired.

They’ve taken so long that I can no longer return it to the place I purchased it, and every day for the past week, I’ve listened to the manufacturer and the shipper (the company who is supposed to pick up and deliver it) blame each other for the missing RMA. It’s taken so long now that I’m investigating other remedies, including a letter from my lawyer (but only because she’s a friend with an ominous-looking letterhead) to simply get someone to take responsibility so I can get this repaired. Needless to say, I won’t be buying a PC from this company again in my lifetime.

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Understanding When a Warranty Has Been Voided

There are many things you can do to a product that will void its warranty and absolve the manufacturer of any obligation to help you in the event of a problem.

Depending on the type of product and its features, you may invalidate your warranty if

  • You open a device that is clearly labeled “Do Not Open.” Monitors often bear this warning, as do some hard drive cases.

  • You operate the product in a manner specifically contradicted in the instructions. For example, the warranty may specify that the device must be plugged into a grounded outlet but you use an ungrounded outlet or you operate a device near moisture.

  • You modify the device in some way that changes its operation, like overclocking a video adapter or motherboard.

  • You destroyed the product through your own actions, even if accidentally. Someone I knew once tried to return a new hard drive he managed to run over with his car; he was quite upset when the store wouldn’t take it back.

Issues Concerning Disasters and Product Warranties

Under normal circumstances, your warranty won’t cover damage caused by a disaster, whether it’s a natural one or a nasty event wrought by you or someone with access to your PC.

One exception to this is often protection devices such as surge protectors and uninterruptible power supplies (UPSs). Since these products are meant to act as mediators or protectors against the damage that may occur to your PC setup, some manufacturers offer exceptions to help cover the cost of equipment attached to the device if it fails to deliver the promised protection. For example, let’s say that you bought a home/office-capacity UPS from American Power Conversion (APC) that offers something APC calls its Equipment Protection Policy, and your UPS takes a hit from lightning. If the lightning’s effects push through the protective hardware of that UPS to damage your PC, you may be eligible to collect up to $25,000 (U.S.) in repair or replacement costs for that damage under this policy.

Some restrictions may apply, of course. Often, you need to have registered the product at the time of purchase (although some manufacturers accept proof of purchase in lieu of formal registration) in order to exercise a manufacturer’s policy. Read your power protection device’s included literature for details.

Warning 

Don’t expect to just call up and say, “Send me a check because my PC is damaged.” Most companies offering such policies stipulate you must return the defective device for evaluation; usually they require proof of the damage that was incurred.



PC Disaster and Recovery
PC Disaster and Recovery
ISBN: 078214182X
EAN: 2147483647
Year: 2006
Pages: 140
Authors: Kate J. Chase

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