Limited warranties are governed by federal and state laws, which vary by state, and provide a measure of protection for consumers of various products and services that they will perform their intended uses and live up to claims made. Under the Uniform Commercial Code (UCC), which has been adopted in some form by almost all states, liability for breach of warranty is based on seller status. Manufacturer, distributor, and retailer could all be jointly and severally liable, so that the full amount of damages could be collected from one or any of them. The distributor and retailer may be able to escape liability if the manufacturer is not bankrupt. Purchasers, consumers, users, and even bystanders are entitled to sue in most states for breach of warranty.
A warranty is limited rather than full if:
- The duration of implied warranties is limited.
- Warranty coverage is limited to first purchasers.
- . Warranty service is not free of charge, including such costs as returning the product or removing and reinstalling the product when necessary.
- The consumer does not have a choice between either a replacement or a full refund if, after a reasonable number of tries, you are unable to repair the product.
- Consumers are required to perform any duty as a precondition for receiving service, except notifying you that service is needed, unless you can demonstrate that the duty is reasonable.
You are not required to make your entire warranty "full" or "limited" If the statements above are true about the coverage on only some parts of your product, or if the statements are true about the coverage during only one part of the warranty period, then your warranty is a multiple warranty that is part full and part limited.