‘Tis the Season to Purchase the Extended Warranty
By: Alex Rechenmacher

It’s the holiday season again and while that means mistletoes and candy canes for most, it usually means shopping and increasing credit card bills for all. If you find yourself springing for one of those more expensive items on your list, you may hear a very common question when you reach the checkout line, asking whether you would like to purchase a warranty with your new product.

Many expensive items, such as cars and appliances, and more recently electronic gadgets of all shapes and sizes, typically come with a full or limited written warranty, which will cover you for a number of necessary repairs or defects in the product. A full warranty can allow you to obtain a full refund or even a free replacement. Warranties can apply to new and used items.

But did you know that warranties can extend beyond these written contracts that you purchase? Illinois, like all states, protects its consumers in virtually every purchase they make, even without a written warranty, through an ‘implied’ warranty. The most common type of implied warranty, a “warranty of merchantability”, means that the product must be able to perform for a specific purpose. For example, if you purchase a stereo, it should be able to play music.

Another type of implied warranty is a “warranty of fitness for a particular purpose”. If a seller indicates that a product or service will provide certain results, they must stand by those results. So, if the furniture salesman tells you that a new stand will hold your flat screen television, you should be able to bring it back and get a refund when it breaks.

To prevent problems related to warranties, consumers should read them thoroughly before they make their purchase, save the receipt and warranty form, and perform maintenance as required or recommended. Be careful to notice whether you are purchasing a product “as is”, meaning that you promise to take the product in its current condition, whatever that may be; you may be relieving the seller of any implied warranties.

If a problem surfaces, it's best to resolve the issue directly with the merchant. Most quality merchants consider customer satisfaction a primary goal and may fix your problem at no cost. The rationale used is that a free replacement is a small cost compared to having a customer who will come back again later to buy another product. If your discussion with the merchant does not go well, you can contact the Better Business Bureau, the Consumer Fraud Bureau of the Illinois Attorney General's Office, or hire an attorney and file a lawsuit against the seller.

In short, pay attention to the fine print and be cautious. Happy shopping and Merry Christmas!