Magnuson-Moss Warranty Act


Also found in: Financial, Wikipedia.

Magnuson-Moss Warranty Act

The Magnuson-Moss Warranty–Federal Trade Commission Improvement Act was the first federal statute to address the law of Warranty. The act (15 U.S.C.A. § 2301 et seq.) mandates that a written warranty on any consumer product that costs more than $5 must completely and conspicuously disclose, in easily understood words, the terms and conditions of the warranty. A warranty may guarantee several things, such as that the item will perform in a certain way or that the manufacturer will repair or replace the item if it is defective.

The act was sponsored by Senators Warren G. Magnuson and Frank E. Moss. Congress passed the act in 1975. Its purpose was to improve the information available to consumers, prevent deception, and improve competition in the marketing of consumer products, which are defined as property distributed in commerce and actually used for personal, family, or household purposes. The act provides a federal Cause of Action for consumers who experience problems with warranted durable goods. If a plaintiff prevails against a seller in a lawsuit brought under the act, the plaintiff is entitled to recover all litigation expenses, including attorney's fees based on actual time expended, as determined by the court.

The Act does not require that manufacturers or sellers of consumer products provide written warranties. Instead, the act requires that manufacturers and sellers who do warrant their products to clearly disclose the terms of the warranty so that the consumer understands his or her rights under the warranty.

In addition, according to the act, a written warranty on a consumer product that costs more than $10 must be clearly labeled as "full" or "limited." A full warranty means that whoever promises to fix the item must do so in cases of defect or where the item does not conform to the warranty. This action must be done within a reasonable time and without charge. A limited warranty can contain reasonable restrictions regarding the responsibilities of the manufacturer or seller for the repair or replacement of the item.

Further readings

Schaefer, David T. 1996. "Attorney's Fees for Consumers in Warranty Actions—An Expanding Role for the UCC?" Indiana Law Journals 61 (summer).

Cross-references

Consumer Protection.

References in periodicals archive ?
It's actually illegal for a manufacturer to specify a certain branded product as the only one that will work when there are other equivalent options available [according to the Magnuson-Moss Warranty Act, 1975]."
Nixing the Fix: A Workshop on Repair Restrictions will focus on how manufacturers may limit repairs by consumers and repair shops and whether those limitations affect consumer protection, including consumers rights under the Magnuson-Moss Warranty Act. The statute, which the FTC enforces, is aimed at helping consumers make informed purchasing decisions and having access to remedies if a product does not perform as specified.
As the Federal Trade Commission (FTC) explains on its website, for everything from trucks to toasters, the 1975 Magnuson-Moss Warranty Act "makes it illegal for companies to void your warranty or deny coverage under the warranty simply because you used an aftermarket or recycled part." Although as Road and Track puts it, if your newly upgraded engine sends too much power to the transmission and the transmission fails, the manufacturer "could deny the coverage on that repair."
The FTC believes all six companies are violating the 1975 Magnuson-Moss Warranty Act, which states that no manufacturer charging more than $5 for a product may put repair restrictions on a device its offering a warranty on.
- In addition, violating the Magnuson-Moss Warranty Act by refusing to repair and exchange defective parts in the CANBUS was also a violation of the Unfair Competition Law.
The suit specifically accuses Apple of violating the federal Magnuson-Moss Warranty Act, as well as violating the Song-Beverly Consumer Warranty Act and other California consumer protection laws.
The new rules were a result of the 2015 E-Warranty Act -- which had updated the Magnuson-Moss Warranty Act (MMWA).
Part IV(b) of this article will initially address the Magnuson-Moss Warranty Act, which enables customers who are injured due to the gross product warranty abuse of the manufacturer to have their day in court by allowing them to initiate a private cause of action.
The Magnuson-Moss Warranty Act, although utilized commonly in warranty disputes involving automobiles, is a federal statute providing remedies in consumer disputes and foreseeably applies to construction cases, provided the criteria under the act are met.
Ford Motor Company and Fleetwood Enterprises Inc.: Plaintiff is seeking relief under the Oregon Lemon Law and the Federal Magnuson-Moss Warranty Act. Suit seeks $173,446.
Consumers purchasing "lemons" can seek legal remedies under the federal Magnuson-Moss Warranty Act or the Uniform Commercial Code.
Using its state's lemon law, the Florida Supreme Court has ruled that car lessees may sue for breach of warranty under the federal Magnuson-Moss Warranty Act (MMWA).