By law, a written warranty must contain certain basic information about its coverage. Your warranty must include information about:
- what parts of the product or what types of problems the warranty covers (and, if necessary for clarity, what parts or problems it does not cover);
- what the period of coverage is;
- what you will do to correct problems (and, if necessary for clarity, what you will not do);
- how the customer can get warranty service; and
- how state law may affect certain provisions of the warranty
In addition, if there are limitations or conditions on the warranty coverage you provide, you must include a statement of them in your warranty. You may want to consider what conditions and limitations you really need and eliminate those that are unnecessary.
If your warranty contains certain particular conditions or restrictions, you must include additional information.
Finally, the law requires that your warranty include a title that indicates whether it is "full" or "limited." What these terms mean and how to use them in titling your warranty are explained in detail later.
Include Extra Detail in a Pro Rata Warranty
A special note is in order concerning what to include in a pro rata warranty. A pro
rata warranty is one that provides for a refund or credit that decreases according to a
set formula as the warranty period progresses or as the product is used. Because a pro
rata warranty offers a remedy that is rather complicated, it should include certain
detailed information so that customers can understand what the company will do if the
product malfunctions. A pro rata warranty should include information that makes clear:
- what formula the company will use to calculate how much the refund or the credit will be at any time during the period of coverage;
- what the consumer will get - either a credit, a refund, or a choice of a credit or a refund, whichever is the case;
- that the only remedy is a credit toward an identical product, if this is the case; and
- what price the company will use as a basis to calculate the refund or credit - for example, the price the customer originally paid or the price at the time the product malfunctions, if different.
What Your Warranty Should Not Include
Promotional statements, instructions to service agents, and other extraneous material
in a warranty may confuse customers about the purpose of the document. Include only
necessary information in your warranty. A concise, straightforward warranty will promote
your product better than a crowded document full of praise for your product.
If you feel that it is necessary to include promotional material about your product with your written warranty, keep it separate from the warranty. If possible, put it in a separate brochure. If you put promotional statements on the same page as your warranty, clearly set apart your warranty, for example, by placing a border around it. The customer should be able to separate at a glance the warranty from the promotional material.
