Problem–solving:

The Broken Promise

Ruth orally agreed to sell her car to Mike for 32,000. A few days later, she got an offer of $2,300 from Paul. Thereafter, she refused to sell her car to Mike. Can Mike hold her to the agreement? Should he be able to?

The Unfair Contract

A furniture store made an unemployed woman on public assis­tance sign its standard form contract for credit every time she made a purchase at the store. The contract had a term that said the store would own every item the woman purchased until all the items were fully paid for. The woman made several purchases at the store, signing this contract each time.

After several years of making all her payments, she purchased a stereo and missed two payments. The store believed it had the right under the contract to take back all the items the woman had ever purchased there.

A court of appeals found a portion of the contract to be uncon­scionable and did not enforce this unfair term in the agreement. The woman had to return the stereo but was able to keep all the items she had already paid for.

Match the words on the left with the correct definition on the right:

Unconscionable	unfair.
Uneven	defend from trouble, harm.
Enforce	illegal.
Protect	a section of a legal document.
Clause	ensure observance of or obedience to a law, decision.

Unit 17.

Warranties

Read and translate the texts.

A warranty is a promise or guarantee made by a seller concern­ing the quality or performance of goods offered for sale. A warranty is also a statement of what the seller will do to remedy the problem if the product doesn’t perform as promised. If the seller does not live up to the promises made in the warranty, the warranty is said to be breached.

Warranties give consumers very important rights. You should al­ways be aware of the warranties that exist when you make a pur­chase.

Not all warranties are the same. It’s worthwhile to compare warranties when shopping.

When you look at a warranty, consider the duration (how long does it last?), the scope (what parts or problems are covered or excluded?), and the remedy (what do you get under the warranty and what must you do to get the remedy?).

Check your own state’s law. Sometimes it gives you rights that are not in the warranty.

There are two types of warranties: express and implied.

Express Warranties

An express warranty is a statement–written, oral, or by demonstration–concerning the quality or performance of goods of­fered for sale that becomes a part of the bargain between the parties. For example, if a salesperson tells you «This TV will not need any re­pairs for five years», this salesperson has created an express warran­ty. Similarly, an express warranty is created if you purchase a vacuum cleaner from an appliance store after seeing a demonstra­tion of the vacuum picking up small particles from a deep shag rug. Since oral warranties and warranties by demonstration are difficult to prove, it is always best to get a written warranty.

Express warranties are created by statements of fact. Not every­thing a seller says is a warranty. If the seller’s statement is merely an opinion or an obvious exaggeration, it is considered puffing, or sales talk, and cannot be relied on. For example, a used car dealer advertising «Fantastic Used Cars» is engaged in puffing. No warran­ty is created, and no customer should rely on such a statement.

What happens if your TV blows a tube or your watch won’t keep time? The first thing to do is check the warranty. One TV may be guaranteed for 90 days, while another may be covered for a full year. Your warranty may provide a remedy when things go wrong. You may be able to return the item for a refund, exchange it for another, or have it repaired.

Sellers do not have to give written warranties. However, if they do, the Magnuson–Moss Warranty Act requires that the written war­ranties (1) disclose all the essential terms and conditions in a single document, (2) be stated in simple and easy–to–read language, and (3) be made available to the consumer before a sale. Written warranties must also tell you exactly what is included and what is not included. For example, the warranty must explain what repairs are covered and who will make them. The warranty act does not apply to prod­ucts that cost $15 or less.

Under the act, warranties are labeled either full or limited. Under a full warranty:

• A defective product will be fixed or replaced free, including removal and reinstallation, if necessary.

• The consumer will not have to do anything unreasonable (such as shipping a piano to a factory) to get the warranty service.

• The product will be fixed within a reasonable time after the consumer complains.

• If the product can’t be fixed after a reasonable number of attempts, the consumer can get a refund or a replacement.

• The warranty applies to anyone who owns the product during the warranty period (not just the first purchaser).

Any protection less than this is called a limited warranty. Such a warranty could cover some defects or problems and not others. For example, the limited warranty on a video recorder might cover the cost of new parts but not labor. Or it might cover some parts but not others. To learn what is covered, read all of the warranty carefully.

Find the equivalents of the following words and expressions in the text.

Гарантия; действовать согласно обязательствам; невыполнение гарантийных обязательств; знать о существующих гарантийных обязательствах; продолжительность гарантийного периода; возмещение; прямая гарантия; связанная гарантия; очевидное преувеличение; торговец подержанными автомобилями; отремонтировать бесплатно; переустановить; получить назад деньги; заменить товар; ограниченная гарантия.

Answer the questions:

1. What is a warranty?

2. What happens if the seller does not live up to the promises made in the warranty? Have you ever come across such situations?

3. Why should you al­ways be aware of the warranties that exist when you make a pur­chase?

4. What should you consider when you look at a warranty?

5. What two types of warranties are there?

6. What is an express warranty?

7. Why is it always best to get a written warranty?

8. Is every­thing a seller says a warranty?

9. What is the difference between a warranty and a sales talk?

10. What is the first thing to do when something goes wrong with an item you purchased?

11. What does the Magnuson–Moss Warranty Act require? Do we have any acts like this in Russia?

12. What is the difference between a full and limited warranty?

13. Give your own examples of different warrants you have read.