MAGNUSON-MOSS CONSUMER PROTECTION WARRANTY-FEDERAL TRADE COMMISSION IMPROVEMENT ACT - COMPROMISE OF CONSUMER PROTECTION?

• NCJ Number: 53070
• Author(s): C E ALDEN
• Date Published: 1975
• Length: 41 pages
• Sale Source: National Clearinghouse for Legal Services
• Language: English
• Country: United States of America

Annotation

THE BACKGROUND AND LEGISLATIVE HISTORY OF THE MAGNUSON-MOSS ACT ARE REVIEWED, THE ACT'S WARRANTY PROVISIONS ARE EXAMINED, AND POTENTIAL PROBLEMS AND EFFECTS OF THE ACT ARE CONSIDERED.

Abstract

THE PURPOSE OF THE ACT, WHICH WAS ENACTED BY CONGRESS ON JANUARY 4, 1975 TO IMPROVE THE POSITION OF THE CONSUMER IN THE MARKETPLACE, IS TO MAKE THE FEDERAL AGENCY RESPONSIBLE FOR CONSUMERS' ECONOMIC WELL-BEING MORE EFFECTIVE AND TO DELINEATE SPECIFICALLY THE DUTIES WHICH SUPPLIERS OF CONSUMER PRODUCTS ASSUME WHEN OFFERING WRITTEN WARRANTIES. THE ACT WAS ALSO DESIGNED TO MAKE IT ECONOMICALLY FEASIBLE FOR CONSUMERS TO PURSUE THEIR LEGAL REMEDIES WHEN SUPPLIERS OF PRODUCTS BREACH THEIR VOLUNTARILY ASSUMED WARRANTY OBLIGATIONS. THE ANALYSIS OF THE ACT'S PROVISIONS COVERS DEFINITIONS, DISCLOSURE OF WARRANTY TERMS TO CONSUMERS, DESIGNATION OF WARRANTIES AS 'FULL' OR 'LIMITED,' FEDERAL MINIMUM STANDARDS FOR WARRANTIES, PRODUCTS HAVING BOTH FULL AND LIMITED WARRANTIES, SERVICE CONTRACTS IN LIEU OF WRITTEN WARRANTIES, DESIGNATION OF REPRESENTATIVES TO PERFORM DUTIES UNDER WARRANTIES, LIMITATION ON DISCLAIMER OF IMPLIED WARRANTIES, FEDERAL TRADE COMMISSION (FTC) RULES, REMEDIES, AND EFFECT ON OTHER LAWS. IT IS CONCLUDED THAT THE SUCCESS OR FAILURE OF THE ACT DEPENDS ON THE EXTENT AND SPECIFICITY OF THE FTC'S RULES AND ON SUBSEQUENT LITIGATION FOCUSING ON SPECIFIC PROVISIONS AND PROBLEMS IN THE ACT. HOWEVER, THE ACT APPEARS TO BE COMPREHENSIVE AND ENFORCEABLE AND SHOULD PROVIDE THE NECESSARY PROTECTION FOR CONSUMERS. THE ACT ACHIEVES THIS PROTECTION BY REQUIRING THAT FEDERAL WARRANTY STANDARDS BE APPLIED UNIFORMLY TO ALL MANUFACTURERS WHO ISSUE WRITTEN WARRANTIES; BY GRANTING THE FTC ADEQUATE POWER TO ENFORCE THE PROVISIONS AND POLICIES OF THE ACT AND TO RESOLVE ANY AMBIGUITIES ARISING UNDER THE ACT; AND BY ALLOWING CONSUMERS TO BE REIMBURSED FOR COURT COSTS AND ATTORNEYS' FEES WHEN THEY LITIGATE SUCCESSFULLY AGAINST MANUFACTURERS WHO VIOLATE THE PROVISIONS OF THE ACT. (LKM)