The Goods, The Bad and The Warranty

byObiter 07

You’ve finally bought your dream car, that longed-for component, that precious cooking range or that pretty bag. But just when you’ve begun breaking in your sweet purchase, suddenly, an unexplainable and sickening sound comes out of the car engine, the disk changer keeps stopping, one burner doesn’t work, or the bag’s strap breaks off. Now, you can’t help getting that sinking feeling that the car is a lemon, or the component, the range or the bag is just plain worthless.

You need not chuck it down to experience. The law does provide some remedies to an aggrieved buyer.

Implied Warranties

In the first instance, a claim may be based on the implied warranty against hidden defects under the New Civil Code:

“ARTICLE 1547. In a contract of sale, unless a contrary intention appears, there is:
(1) xxx,
(2) An implied warranty that the thing shall be from any hidden faults or defects, or any charge or encumbrancenot declared or known to the buyer.

“xxx”

ARTICLE 1561. The vendor shall be responsible for warranty against the hidden defects which the thing sold may have , should they render it unfit for the use for which it is intended, or should they diminish its fitness for such use to such an extent that, had the vendee been aware thereof, he would not have acquired it or would have given a lower price for it; but said vendor shall not be answerable for patent defects or those which may be visible, or for those which are not visible if the vendee is an expert who, by reason of his trade or profession, should have known them. (1484a)” (Emphasis supplied)

Remember though, actions for breach of implied warranties under the contract of sale is generally barred after six (6) months from delivery of the thing sold.[1] So if problems manifest themselves after this period, you need to find some other way to get relief.

Express Warranties

If there are express warranties provided, the claim shall be based under Republic Act No. 7344 otherwise known as the Consumer Act of the Philippines. The Consumer Act distinguishes between full and limited warranties thus:

“(c) Designation of warranties. - A written warranty shall clearly and conspicuously designate such warranty as:

(1) “Full warranty” if the written warranty meets the minimum requirements set forth in paragraph (d); or

(2) “Limited warranty” if the written warranty does not meet such minimum requirements.

d) Minimum standards for warranties. - For the warrantor of a consumer product to meet the minimum standards for warranty, he shall:

(1) remedy such consumer product within a reasonable time and without charge in case of a defect, malfunction or failure to conform to such written warranty;

(2) permit the consumer to elect whether to ask for a refund or replacement without charge of such product or part, as the case may be, where after reasonable number of attempts to remedy the defect or malfunction, the product continues to have the defect or to malfunction. The warrantor will not be required to perform the above duties if he can show that the defect, malfunction or failure to conform to a written warranty was caused by damage due to unreasonable use thereof. (Art. 68)”

You have to then examine the express warranties made by the product manufacturer. Note that replacement is called for only after repairs are done and have proven are ineffective.

Remedies

A breach of express or implied warranties entitles the consumer to the following reliefs under the Consumer Act:

“(f) Breach of warranties. - (1) In case of breach of express warranty, the consumer may elect to have the goods repaired or its purchase price refunded by the warrantor. In case the repair of the product in whole or in part is elected, the warranty work must be made to conform to the express warranty within thirty (30) days by either the warrantor or his representative. The thirty-day period, however, may be extended by conditions which are beyond the control of the warrantor or his representative. In case the refund of the purchase price is elected, the amount directly attributable to the use of the consumer prior to the discovery of the non-conformity shall be deducted.

(2) In case of breach of implied warranty, the consumer may retain in the goods and recover damages, or reject the goods, cancel and contract and recover from the seller so much of the purchase price as has been paid, including damages. (Article 68)”

In brief, for express warranties, one can elect repair or a refund. For implied warranties, one can retain the goods with damages or reject the same and get a refund. A similar relief but with damages, in the case of implied warranties, is provided under the Civil Code.[2]

In case you don’t know yet, these provisions are what protect consumers against any ‘No Return, No Exchange“ policy. Before considering any court case, though, remember that you can always file a complaint with the DTI via online at www.dti.gov.ph or their hotline 751-3330.

[1] ARTICLE 1571. Actions arising from the provisions of the preceding ten articles shall be barred after six months, from the delivery of the thing sold. (1490) [R. A. No. 7384]

[2] ARTICLE 1567. supra.

NEWER POST       |       PREVIOUS POST