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Warranty fraud can occur when a business or other entity breaches a pledge made to a consumer or group of consumers. By definition, a warranty is an expressed or implied representation of the facts about a product or service. Both federal and state laws exist to protect consumers who are affected by warranty fraud and to enforce against those who commit this unlawful business practice.
If you have suffered financial losses due to warranty fraud, you may be able to participate in a class action lawsuit, which can help you seek compensation for your damages. If a company or similar entity is found responsible for warranty fraud, they may be required to provide reparations to all those affected by their wrongful action. An experienced consumer fraud lawyer can evaluate your claim to determine the best way to help you. Please contact us to speak with a qualified attorney today.
Products Liability and Warranty Fraud Law
Products liability laws are concerned with three types of warranties, which are all part of the Uniform Commercial Code (UCC). The three types of warranties include express warranties, implied warranty of merchantability, and implied warranty of fitness. Other warranties, such as a warranty of title or extended warranty may also apply.
Every state has adopted products liability laws to protect consumers from warranty fraud. Additional consumer protection laws exist to protect consumers from unfair and deceptive business acts, which involve warranty fraud.
Breach of Warranty
A breach of warranty occurs when the contractual agreement or supplier’s statement of facts is violated or dishonored. For example, when a product or service is not as should be reasonably expected by the consumer, a breach of warranty has occurred. A seller or supplier has a duty to replace, repair, or refund any product affected in a breach of warranty.
At the time of sale, a statute of limitations starts ticking, which limits the time a consumer has to file a legal claim about over a breach of warranty. In some cases, this time is longer when a consumer purchases an extended warranty from the supplier. Suppliers have the duty to honor all terms of an extended warranty.
How Warranty Fraud Can Occur
It is considered warranty fraud when a business tries to avoid liability for a breech of the primary warranty by claiming that an extended warranty has expired. For example, if the product was defective at the time of purchase, it is a violation of the primary warranty for the product. This is true even when the consumer purchased an extended warranty, which may have since expired.
It is also warranty fraud when a seller intentionally tries to deceive or rip-off a consumer or group of consumers through a warranty scheme. This may involve intentionally making statements about a product or service, which are false or misleading, then attempting to skirt liability through a claim of warranty expiration. Failure of a supplier to honor the terms of a primary or extended warranty may also constitute warranty fraud.
In some cases, a repair outfit might fraudulently defer repairs until the expiration of a warranty to charge consumers a higher rate. Auto fraud is another major area in which warrantee fraud can occur, particularly with extended warranties. There are numerous other ways warranty fraud can be committed.
If you have suffered losses due to warranty fraud or you suspect you may have a claim, it is wise to seek the early advice of a qualified attorney to determine your legal rights and options.
Sometimes consumers feel that they are alone in having the "bad fortune" of dealing with an unscrupulous business. However, many people like you may have been deceived and defrauded in the same way. A consumer fraud class action lawsuit can help you and all those like you seek compensation for your losses. Please contact us to speak with a qualified and experienced consumer fraud lawyer who can answer your questions and determine the best way to get you the compensation you deserve.