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Guarantee And Warranty



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Distinction between guarantee and warranty from a consumer view point

Guarantee And Warranty

  1. 1. GUARANTEE AND WARRANTY <ul><li>APURVA AGRAWAL </li></ul><ul><li>COUNCIL FOR FAIR BUSINESS PRACTICES </li></ul><ul><li>September 6,2007 </li></ul>
  2. 2. Protecting the Consumer. <ul><li>2/3 of spending in the world economy is by consumers. </li></ul><ul><li>Yet they have no choice! </li></ul><ul><li>New economic policy floods market with products- Ye Dil Maange More! - too little information for informed choice. </li></ul>
  3. 3. RIGHTS AVAILABLE TO CONSUMERS <ul><li>Right to Safety (protected against the marketing of goods and services, which are hazardous to life and property) </li></ul><ul><li>Right to be Informed (quality, quantity, potency, purity, standard and price of goods) </li></ul><ul><li>Right to Choose (access to variety of goods and services at competitive price.) </li></ul>
  4. 4. RIGHTS AVAILABLE TO CONSUMERS <ul><li>Right to heard (consumer's interests will receive due consideration at appropriate forums.) </li></ul><ul><li>Right to Seek redressal (against unfair trade practices or unscrupulous exploitation of consumers.) </li></ul><ul><li>Right to Consumer Education (know their rights and must exercise them , particularly the rural consumer.) </li></ul>
  5. 5. Buyer Be AWARE: Look for - <ul><li>ISI Mark: </li></ul><ul><li>On electrical and cooking gas, appliances, cement , steel etc. </li></ul><ul><li>This guarantees quality of every batch in production process </li></ul><ul><li>ISI license is granted by BIS for 1 year only </li></ul>
  6. 6. GUARANTEE <ul><li>A promise or an assurance </li></ul><ul><li>Especially one given in writing </li></ul><ul><li>That attests to the quality or durability of a product or service. </li></ul>
  7. 7. WARRANTY <ul><li>A promise, either written or implied </li></ul><ul><li>That the material and workmanship of a product are without defect </li></ul><ul><li>Meets a specified level of performance over a specified period of time. </li></ul>
  8. 8. DIFFERENCES Repair Repair/ Replacement/ Refund 2. Assurance Promise/pledge 1. WARRANTY GUARANTEE S. No.
  9. 9. IN CASE OF DEFECT <ul><li>GUARANTEE </li></ul><ul><li>Product will be either </li></ul><ul><li>Repaired, or </li></ul><ul><li>Replaced </li></ul><ul><li>Cost of Product will be refunded </li></ul>
  10. 10. IN CASE OF DEFECT <ul><li>WARRANTY </li></ul><ul><li>Product will be repaired only </li></ul>
  11. 11. Standards of Weights & Measures Act , 1976 <ul><li>Introducing standard in relation to weights and measures used in trade and commerce. The ultimate objective is to sub serve the interests of the consumers. </li></ul>
  12. 12. Standards of Weights & Measures Act , 1976 <ul><li>Purpose :- </li></ul><ul><li>Replace the bewildering varieties of weights and measures in use in the country by standards based on the metric system </li></ul><ul><li>Provide better protection to consumers by ensuring accuracy in weights and measures </li></ul>
  13. 13. Standards of Weights & Measures Act , 1976 <ul><li>Standard units : </li></ul><ul><li>Every unit of weight or measure shall be based on the units of the metric system. </li></ul><ul><li>Deals with the physical representation of standard units. </li></ul>
  14. 14. Packaged Goods <ul><li>Meaning- ‘Pre-packed Commodity’ </li></ul><ul><li>A commodity which, without the purchasers being present is packed , so that the quantity of the product containing therein has a pre determined value and such value can not be altered without package , being opened or undergoing a perceptible modification and the expression &quot; Package&quot; wherever it occurs shall be construed as a package containing a pre-packed commodity </li></ul>
  15. 15. Packaged Goods <ul><li>Merits: </li></ul><ul><li>Transporting, handling and distribution becomes easier. </li></ul><ul><li>Demerits </li></ul><ul><li>Conceals identity, uniform packing leads to confusion, undated packets- freshness ?? </li></ul>
  16. 16. Declaration on package <ul><li>Name & Address of Manufacturer/ Packer. </li></ul><ul><li>Generic name eg. Salt – Sodium Chloride. </li></ul><ul><li>Net quantity. </li></ul><ul><li>Date of manufacture. </li></ul><ul><li>Price. </li></ul>
  17. 17. Standards of Weights & Measures Act , 1976 <ul><li>Penal Provisions: </li></ul><ul><li>Fine upto Rs 1000/- and imprisonment upto seven years , if violation (use of non-standard units in non-metric system for weights and measures) of any provision of the Act is found. </li></ul>
  18. 18. Standards of Weights & Measures Act , 1976 <ul><li>Penal Provisions: </li></ul><ul><li>Authorities also have the power to inspect, search, seize and forfeit the goods involved in the offence. </li></ul><ul><li>Non-registration </li></ul><ul><li>Not maintaining prescribed registers/records. </li></ul>
  19. 19. Standards of Weights & Measures Act , 1976 <ul><li>Every consumer must know how to identify false weights and measures. </li></ul><ul><li>The tools for consumer protection are: </li></ul><ul><li>Weighing balance </li></ul><ul><li>Measuring rod </li></ul><ul><li>Calibrated container </li></ul>
  20. 20. Standards of Weights & Measures Act , 1976 <ul><li>There should be three seals on the back of the weights: </li></ul><ul><li>The number assigned to the sealing Inspector, </li></ul><ul><li>The year in which the seal is affixed </li></ul><ul><li>The quarterly seal.  </li></ul>
  21. 21. In a Shop CHECK- <ul><li>Verification Certificate of ILM must be displayed prominently in all shops using weights/ measures. </li></ul><ul><li>A weighing balance not of metal and without pointer is illegal. It does not display the correct weight. </li></ul>
  22. 22. In a Shop CHECK- <ul><li>Every weight has to be stamped on the reverse with the last two digits of the year (e.g. 03 for 2003) & the unit no. of the inspector. </li></ul><ul><li>Refuse non- standard weights like stones, iron pieces etc. and if the lead filling is missing on reverse. </li></ul>
  23. 23. Balances and Weights <ul><li>Any balance and scale made of wood and using string to suspend the pans is illegal. </li></ul><ul><li>Electronic weighing instruments, the verification seal is on a plate fixed to it. </li></ul>
  24. 24. DOs for Fair Business <ul><li>Right product, right service at right price with cash-memo </li></ul><ul><li>Honour warranty and guarantee . Provide reliable, adequate after-sales services and spare parts </li></ul><ul><li>Honour Consumer Rights to safety, choice, information </li></ul>
  25. 25. DOs for Fair Business <ul><li>Undertake & participate in factual consumer education programmes. </li></ul><ul><li>Build up a social coalition between producers, sellers, consumers. </li></ul>
  26. 26. PRECAUTIONS FOR CONSUMERS <ul><li>Purchase only when you need and do not purchase in a hurry . </li></ul><ul><li>Do not buy blindly. Demand full information before you buy. </li></ul><ul><li>Do not compromise on the quality of goods and services </li></ul>
  27. 27. PRECAUTIONS FOR CONSUMERS <ul><li>Beware of false/ misleading advertisements. </li></ul><ul><li>Always obtain the guarantee/warranty card duly stamped and signed by the shopkeeper , wherever necessary. These can be helpful in consumer courts. </li></ul>
  28. 28. DUTIES OF CONSUMERS <ul><li>Insist on receipts or bill without fail, on all the purchases made. </li></ul><ul><li>Read information carefully on the packets before purchase. </li></ul>
  29. 29. DUTIES OF CONSUMERS <ul><li>Buy standardized products only i.e. of ISI or AGMARK BRANDS </li></ul><ul><li>File consumer complaints against default in goods deficiency in services, or unfair trade practice. </li></ul>
  30. 30. THANK YOU
  31. 31. CONTACT US <ul><li>UNIVERSAL LEGAL </li></ul><ul><li>5th Floor, Kimatrai Building </li></ul><ul><li>7/79 Maharshi Karve Road </li></ul><ul><li>Mumbai – 400 002 </li></ul><ul><li>Phone : 2203 4293 - 95 </li></ul><ul><li>Fax : 2203 9845 </li></ul><ul><li>E-mail : [email_address] </li></ul>