Published — January 22, 2021
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
More on consumer products warranties: 4 Things to know about warranty against hidden defects
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Consumer refers to an individual human being
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Consumer products and services are those which are primarily for personal, family, household, or agricultural purposes
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In every sale, there is a warranty, express or implied
Making consumer choices that reward eco-friendly products and companies is a great way to start. – Al Gore
In our previous article, we mentioned that consumer refers to an individual who is a purchaser, lessee, recipient or prospective purchaser, lessor or recipient of consumer products, services or credit.
What are consumer products and services?
The law says:
Consumer products and services means goods, services and credits, debts and obligations which are primarily for personal, family, household or agricultural purposes, which shall include but not limited to food, drugs, cosmetics, and devices.
To continue, consumer transaction means:
1.(i) a sale, lease, assignment, award by chance, or other disposition of consumer products except securities and contracts of insurance; or
(ii) a grant of provision of credit to a consumer for purposes that are primarily personal, family, household or agricultural, or
2.a solicitation or promotion by a supplier with respect to a transaction referred to in no. 1 above.
Take note inseparable from any consumer transaction is the concept of warranty, express or implied.
What is warranty?
The law says:
In one case decided by the Supreme Court, a warranty is a statement or representation made by the seller of goods – contemporaneously as part of the contract of sale. Said statement or representation has reference to the character, quality, or title of the goods and is issued to promise or undertake to insure that certain facts are or shall be as the seller represents them. A warranty is not necessarily written. It may be oral as long as it is not given as a mere opinion or judgment. Rather, it is a positive affirmation of a fact that buyers rely upon, and that influences or induces them to purchase the product.
Under the Civil Code of the Philippines, any affirmation of fact or any promise by the seller relating to the thing is an express warranty if the natural tendency of such affirmation or promise is to induce the buyer to purchase the same, and if the buyer purchases the thing relying on such affirmation or promise. However, no affirmation of the value of the thing, nor any statement purporting to be a statement of the seller’s opinion only, shall be construed as warranty, unless the seller made such affirmation or statement as an expert and it was relied upon by the buyer.
Furthermore, in a contract of sale, unless a contrary intention appears, there is:
- An implied warranty on the part of the seller that he has a right to sell the thing at the time when the ownership is to pass, and that the buyer shall from that time, have and enjoy the legal and peaceful possession of the thing; and
- An implied warranty that the thing shall be free from any hidden faults or defects, or any charge or encumbrance not declared or known to the buyer.
Moreover, under the Consumer Act of the Philippines, in case of breach of express warranty, the consumer may elect to have the goods repaired or its purchase price refunded by the warrantor. On the other hand, in case of breach of implied warranty, the consumer may retain the goods and recover damages, or reject the goods, cancel the contract and recover from the seller so much of the purchase price as has been paid, including damages.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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