Frequently Asked Questions

How do statutory warranties reduce seller fraud?

Statutory warranties play a crucial role in reducing seller fraud by holding sellers accountable for the condition and performance of their products. These warranties, mandated by state or federal law, ensure that sellers cannot evade their responsibility if a product is defective or fails to perform as advertised. For instance, in some states, sellers are legally obligated to extend warranties for passenger cars, protecting consumers from bearing the cost of repairs needed to meet emission regulations. The Magnuson-Moss Warranty Act further strengthens this protection by requiring sellers to clearly define the terms of express warranties and the requirements for maintaining warranty coverage. This act also empowers consumers to sue sellers in breach of warranty cases, even allowing for class action lawsuits under federal law. Lemon laws also contribute to reducing seller fraud by preventing the sale of defective consumer products. These laws entitle buyers to at least a partial refund if a product issue persists after a certain number of repair attempts or a specific period of time. Moreover, in some states, sellers cannot disclaim an implied warranty by selling an item "as-is", further protecting consumers from fraudulent practices.