Also, it is worth noting that this Act affects both the rights of consumers and the obligations of warrantors that are offering written warranties.
To understand the Act, it is probably best that the consumer be aware of Congress' intentions when they first passed it.
First of all, Congress wanted to make sure that consumers could get complete information about warranty terms and conditions up front and in their truest form. By providing people with a way of learning what warranty coverage is offered on a product before they buy, the Act actually gives them a way to know exactly what they should expect if something goes wrong, and it also goes a long way in increasing customer satisfaction.
Secondly, Congress wanted to make sure that people could compare warranty coverages before buying their cars because in doing this, consumers can choose a product that has the best combination of price, features, and warranty coverage to meet their individual needs.
Thirdly, Congress wanted to promote competition on the basis of warranty coverage alone. By making sure that consumers can get warranty information, the Act has practically forced dealers and manufacturers into hosting sales promotions on the basis of warranty coverage and this competition among companies has made it much easier for consumers to seek various levels of warranty coverage. (Are you seeing a trend yet?)
Finally, Congress wanted to strengthen the pre-existing incentives for companies to perform their warranty obligations in a timely and efficient manner so that it would be easier to resolve any consumer disputes with a minimum of delay and expense.
Because of this, the Act makes it easier for consumers to seek a private solution for any breach of warranty in the courts, but it also creates a foundation for companies to set up good operating procedures for resolving disputes inexpensively and informally, without litigation.
What the Magnuson-Moss Act Does Not Require for Businesses In order for you to be able to understand how the Act affects you as a businessperson, it is important first to understand what the Act does not need from you.
First of all, the Act does not require that any business to provide a written warranty. The Act allows businesses to decide whether or not to warrant their products in writing. Although let me just say that it is just good business to do so.
However, once a business decides to offer a written warranty on a consumer product, it must follow those statutes of the Act.
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