From the Los Angeles Times, the following article focuses on a relevant topic from Chapter twelve in the textbook, Warranties. The article titled, “Kia Offers Hyundai's Warranty Coverage (O’Dell, 2000), are relevant topic of Warranty. The article’s main subject is focusing on both car dealers, Kia and Hyundai, where Kia Motors America launched the longest warranty in the auto industry, which is identical to Hyundai Motor Americas 10-year, 100,000-mile coverage warranty. Such a long warranty provides assurance of potential clients that are thinking about buying a Kia, that the quality of a Kia car is not only new and improved but this warranty signifies that they are more than confident that their vehicle is worth such a long warranty with …show more content…
346) Such an explanation from the textbook when applied to the article is very helpful in understanding that Kia is putting their confidence and character as a company into the warranty, and any customer dissatisfaction of the product not only hurts the reputation of Kia but it breaches an understanding of the warranty and thus puts the control in the customer’s hands for the term of that warranty.
Ultimately, in my opinion relative to the article and the topic of warranty in general discussed in Chapter Twelve, brings to light how a warranty not only is a contract and a written agreement between the buyer and the seller, but it is an agreement of having a good title, reputation and a business etiquette that the seller is promising to the buyer. This article also brings to light how the concept of warranty is not only putting the company’s reputation on the line, it is promising certain performances that if not lived up to would be a breaching of the warranty and thus a breaking of the trust and reputation of the company between seller and buyer. As described in Chapter Twelve of the textbook, a good title warranty seems to be what Kia is trying to establish for its customers, which in my humble opinion is genius to copy Hyundai knowing that their sales soared after initiating an identical warranty.
This type of warranty although puts the control in the hands of the consumer for the length of the
2. In addition, under the rules of UCC § 2-315, (Fitness for Particular Purpose) any cooperation or business that violated an implied warranty of fitness shall be responsible for: At the time of contracting knows a buyer’s particular use (and the buyer relies on the seller’s expertise or judgment in choosing the product) then an ‘implied warranty of fitness has been created.
The Woes of Extended Warranties An extended warranty may be purchased at the time you buy your electronic device or appliance; it may also be possible to purchase one much further along in your ownership experience. If you're the type who likes to be prepared for all eventualities, an extended warranty may be just what you're looking for. Bearing in mind the ever-increasing cost of electronics repairs, these contracts can make a lot of sense.
Hamilton (the Company) was a subsidiary of Motor Company (MC). In 1999 the Company spun off from MC and incorporated. After the separation MC informed the Company that they owed $350-$800 million in warranty claims related to sales that occurred prior to the separation in 1999. Hamilton’s management believed that any warranty claims related to sales prior to the separation should be limited to the reserve amount that was agreed upon separation. MC wanted the full payment for what they owed relating to warranty claims. MC remained Hamilton’s largest client and because of that, Hamilton’s management was motivated to find a solution that would appease MC. Management realized that in paying anything over $100 million to MC would cause a significant reduction in operating income. For this reason, management had significant incentives to mask the true level of warranty expense in order to meet analysts’ forecasts. Management made the decision to report favorable results, no matter what.
In the debate as to whether or not the three-year statute applies, § 60-512 comes into play. If it applies, the plaintiff's claims are excluded. If § 84-2-725, four-year statute applies, the plaintiff's claims are timely. This case involves a sale of goods within the meaning of the UCC, Kan Stat Ann §§ 84-2-102, 84-2-105, and 84-2-106. Therefore the four-year statute applies and the claim is timely. Under Kansas law an express warranty may be created by "any affirmation of fact or promise made by the seller to the buyer which relates to the goods and becomes part of the basis of the bargain" or "any description of the goods which is made part of the basis of the bargain creates an express warranty that the goods shall conform to the description."
To offer an annual warranty that did not require an initial treatment. Not requiring the initial treatment made the new service more of an insurance product, versus a guarantee of performance.
In this paper covering product liability, begins by looking at product liability as a whole. Product liability is at concern of both the user of the product and the manufacturer. To further define product liability the case of Ford’s Pinto brings into question why are manufacturer willing to not fix their product if it would save lives. Ford can be deemed as a company, at the time that had no concern for human life however during the era, many practices were very similar not by reason of a complete disregard for human safety yet is was more so the law is always changing and there just wasn’t strong protect for the consumer in the law. However not in all situations of product liability the manufacture is the ones at fault. Next is discussed on a case where the manufacture cannot be held accountable for injuries, even death and history plays a big factor is such cases. To understand were product liability came from it helps us see where the law is going. With new development in technology product liability will be directed to be viewed again and again. (National Highway Traffic Safety Administration (NHTSA). , 2016)
Car A would have a 100,000 mile full warranty and it would cost $20,000. Car B would have a 70,000 mile warranty and be $15,000. It would be hard to make the decision, as you could get a longer warranty for more, or save money for a shorter warranty. Then Car C is introduced. It has an 85,000 mile full warranty, but it is priced at $22,500. Car C is similar to Car A when compared to Car B, but is very inferior to Car A when compared to it. It has a shorter warranty and it costs more. “It’s how marketers take advantage of comparison shoppers” (Hamm). Car C was the decoy to make Car A look better and make more people buy it, and it
This is not true as different manufacturers offer different warranties. It’s critical to do your homework on different manufacturers and companies to ensure that you only pick the best. Understand the terms and conditions
The seller does not have significant obligations for future performance to directly bring about resale of the product by the buyer.
One of many things than any manufacturing company will have to worry about is the possibility of producing defective products. If a company finds out that there have been defective products that have been produced and put out into the market it would be in their best interests for the company itself to find out first instead of their consumers. When consumers are the ones to notice first about the defective products, it can make news and the trust and credibility of the company can or will be lost. A few prime examples were when Firestone made headlines about producing defective tires and Toyota made headlines about their vehicles having a bad brake system. The last example would be Microsoft when it came down to their
For years, automotive manufacturers have made claims about what their vehicles are and are not capable of. One of these claims involves participation in motorsports. These claims are publicized in advertisements and are furthered with actual demonstrations of vehicles performing in competitive racing environments. However, most, if not all, vehicle warranties specifically state that racing will remove a given manufacturer from liability should a problem occur in the form of a denial of warranty repair work. These practices will be examined from a legal and ethical point of view. A determination will be made about whether or not these practices should be or are allowed under the current configuration of the laws of the United States. Another determination will be made regarding the ethical correctness of the actions undertaken by many automotive manufacturers. The essay will conclude with a review of the possible legal ramifications of advertising a car as capable of participating in competitive racing and then expressly prohibiting this action in the warranty statement of the vehicle. Finally, several considerations will be made about what needs to and should happen in regards to this issue going forward.
a. Traditionally Porsche has developed a low volume and increasingly fragmented auto market. The availability of these high end models created an image of exclusivity. And this image is very important to the Porsche customer and they want their car to represent how successful they are. For the traditional Porsche customer the 1st 3 steps in the buying decision may be skipped or gone through a bit quicker and go to steps 4 and 5 because they already know about the Porsche and they already know what they need in
2) The second reason for the hire purchase device is that a dealer in particular goods or the manufacturer cannot always
The core of a breach of warranty claim is that the manufacturers product does not perform as the manufacturer promised or is missing certain characteristics that the manufacturer promised were included. Any type of defects and the failure to warn the consumer of such defects creates a warranty claim. Just like strict liability, a breach of warranty does not rely on the fact of whether the product adheres to the manufacturer promises, rather, it is based on whether the manufacturer is liable for failing to uphold its promises. A manufacturer could however argue affirmative defenses and other defenses such as a lack of privity, or a lack of notice from the plaintiff. Regardless of the type of liability selected by legislators, they should keep in mind the design or product defect of an AV should be differentiated from the negligence of the
The uncertainty of where the burden of responsibility begins and ends within the consumer and manufacturer relationship has continued to fuel many moral controversies. In a free enterprise system, where government regulation is limited, it is critical to examine this issue as billions of transactions are occurring daily and in some extreme cases become deadly. An instance of this can be illustrated in the Ford Explorer Rollover lawsuit. Although there have been several theories to explain this complex relationship, the Due Care theory is the most superior. I will begin by analysing the Ford Explorer case with the Due Care theory and identify where the manufacturers violated their duties. I will than explain why manufacturers