A guide to warranties for today’s consumers
Jurisprudence provides that the rule on implied warranties does not apply to the sale of second-hand articles.
Published in Daily Tribune on July 23, 2021
by: Migmar Bernped S. Francisco
Today’s consumers are becoming more reliant on various online shopping platforms which confront the consumers with overwhelming product choices. Regardless of the product, the foremost concern of consumers is product warranty. What exactly is contemplated by the law when it speaks of “warranties?”
An old US case defined warranty as any “statement or representation made by the seller of goods, contemporaneously and as a part of the contract of sale, having reference to the character, quality or title of the goods, and by which he promises or undertakes to insure that certain facts are or shall be as he then represents them.”
Under our law, there are two kinds of warranties, express and implied. An express warranty is an affirmation or promise by the seller relating to the thing, which has the tendency of inducing the buyer to purchase the item. For example, if a consumer goes to a watch dealership and is told a certain dive watch has a 40-hour power reserve, and it turns out the watch only has a power reserve of 5 hours, the buyer will have recourse. However, it is important to note that not all statements of a seller can be construed as an express warranty. The law makes a distinction when what is stated by the seller is in the nature of a mere opinion, or what is coined as “dealer’s talk.” The exception to this, is if the seller is an expert, and the buyer relies on his expertise in making the purchase.
The other kind of warranty is an implied warranty. An implied warranty is, as its name suggests, one that is implied from the nature of the transaction and the circumstances surrounding the transaction. In a contract of sale, there are three facts that are implied unless a contrary intention appears: 1) that the seller has a right to sell the thing sold; 2) that the thing sold is free from any hidden defects or encumbrances; and 3) that the thing sold is reasonably fit for the particular purpose for which it is bought or is of merchantable quality, if it is bought by description. Article 68 of the Consumer Act of the Philippines provides that the duration of the express warranty may be stipulated by the parties, whereas for implied warranties it shall not be less than sixty days nor more than one year from the sale of new consumer products.
Jurisprudence provides that the rule on implied warranties does not apply to the sale of second-hand articles. The seller may, however, be held liable if he is found to have been in bad faith. For example, if he sold the product with full knowledge of the defect and concealed the defect. Of course, any express warranties on the sale of second-hand items will stand.
The law also provides for warranties based on redhibitory defects. A redhibitory defect refers to a vice which constitutes an imperfection or defect of certain importance, which renders a product’s use impossible or so inconvenient that it must be supposed that the buyer would not have bought it, or would have given a lower price for it, had he known of the defect. Another requisite here is that the defect must be hidden or latent such that the defect could not have been known by the vendee. Hence, if the defect is obvious or should have been apparent to the buyer upon inspection, said buyer will have no recourse. Under Article 1567 of the Civil Code, the vendee has the option of either rescinding the sale or a proportionate reduction in the price paid, with damages in either case.
In sum, while the law protects the consumers, there remains with them the responsibility of diligence in their dealings. While the law provides for implied warranties, these are by no means blanket warranties which apply to each and every transaction. It is but prudent for consumers to not only seek out express warranties, but to exercise appropriate diligence before making any purchase.
