Warranties

Warranties are covered by the Australian Consumer Law (ACL). The ACL is contained in schedule 2 of the Competition and Consumer Act 2010 (Cth). This law is a Federal law, which means that it applies in all State and Territories.

= What is a warranty? = A warranty is a promise by a business to a costumer that creates rights that can be enforced under the ACL. In other words, they are guarantees for consumers. Warranties are separate from other consumer guarantees or protections in the ACL and in other laws, which apply whether there are warranties or not.

Express warranty
A business can promise verbally or in writing to about the quality or standard of a good. This promise is warranty, and gives the purchaser of the good or service additional rights beyond taking possession of the good or the execution of the service. The ACL guarantees that businesses must comply with express warranties that have been taken up customers.

This is known as an express warranty. It is the most common type of warranty, and he ACL guarantees that businesses must comply with express warranties that have been taken up customers.1 An example would be a shop selling shirts promises that, after purchasing a shirt, if the purchaser within one month decides the shirt is the wrong size, they are entitled to return the shirt and receive a full refund at the purchase price. However, if you purchase something at an auction it cannot be covered by an express warranty.

Manufacturer's Warranty and Defects
Warranties against defects are promises by a business about what will happen if something goes wrong with a good or service. Often these warranties are referred to as a ‘voluntary warranty’ or a ‘manufacturer’s warranty’. A warranty against a defect is a promise to repair or replace the goods or part of them, provide them again or rectify the service, or wholly or partly re-compensate the purchaser.2 An example would be a promise by a plumber to re-do plumbing works if the pipe that was fixed in the original plumbing work bursts again within a month’s time, and further promises to refund the original work. Warranties against defects must be written in plain language that is easy to read and understand.3 The warranty must be accompanied by documentation which includes the business name and contact information of the person or business offering the warranty, what is required of the purchaser to make a claim under the warranty, and a statement that the warranty is offered in addition to existing consumer guarantees.4

Extended Warranties

1�	Schedule 2 s 59 Competition and Consumer Act 2010 (Cth).

2�	Schedule 2 s 102(3) Competition and Consumer Act 2010 (Cth).

3�	Ibid s 24.

4�	Ibid s 192

5�	Ibid s 54.

6�	Ibid s 54(5).

7�	Ibid s 55.

8�	Ibid s 55(2).