NEW JERSEY BREACH OF WARRANTY FREQUENTLY ASKED QUESTIONS

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INTRODUCTION

This article discusses New Jersey Breach of Warranty frequently asked questions.

NEW JERSEY BREACH OF WARRANTY FREQUENTLY ASKED QUESTION #1

WHAT IS A WARRANTY?

A warranty is a form of guarantee or promise given by a manufacturer or car dealer to the person buying or leasing the car. Depending on the law interpreting the term, a warranty may have a different formal definition. Here are some of the different legal definitions for warranties:

  • Under the New Jersey New Car Lemon Law, "warranty" means any warranty, whether express or implied of the manufacturer of a new motor vehicle, or, in the case of a new motor vehicle that is an authorized emergency vehicle, of the manufacturer, co-manufacturer or post-manufacturing modifier, of the vehicle's condition and fitness for use, including any terms or conditions precedent to the enforcement of obligations under the warranty.
  • Under the New Jersey Used Car Lemon Law, "warranty" means any undertaking, in writing and in connection with the sale by a dealer of a used motor vehicle, to refund, repair, replace, maintain or take other action with respect to the used motor vehicle, and which is provided at no extra charge beyond the price of the used motor vehicle.
  • Under the New Jersey Service Contract Act, "warranty" means a warranty made solely by the manufacturer, importer, or seller of property or services without additional consideration, that is incidental to, and not negotiated or separated from, the sale of the property or services, that guarantees indemnity for defective materials, parts, mechanical or electrical breakdown, labor, or workmanship, or provides other remedial measures, including repair or replacement of the property or repetition of services.
  • Under the Federal Warranty Act, “written warranty” means: (A) any written affirmation of fact or written promise made in connection with the sale of a consumer product by a supplier to a buyer which relates to the nature of the material or workmanship and affirms or promises that such material or workmanship is defect free or will meet a specified level of performance over a specified period of time, or (B) any undertaking in writing in connection with the sale by a supplier of a consumer product to refund, repair, replace, or take other remedial action with respect to such product in the event that such product fails to meet the specifications set forth in the undertaking, which written affirmation, promise, or undertaking becomes part of the basis of the bargain between a supplier and a buyer for purposes other than resale of such product. A written warranty must be conveyed at the time of sale of the consumer product and the consumer must not give any consideration beyond the purchase price of the consumer product in order to benefit from the agreement. It is not a requirement of the Act that an agreement obligate a supplier of the consumer product to a written warranty, but merely that it be part of the basis of the bargain between a supplier and a consumer. This contemplates written warranties by third-party non-suppliers.

NEW JERSEY BREACH OF WARRANTY FREQUENTLY ASKED QUESTION #2

WHAT IS A SERVICE CONTRACT?

A service contract is very different from a warranty because normally, a service contract is a guarantee usually purchased by a consumer for a business to perform specific services to a car after its purchase or lease. Depending on the law interpreting the term, a service contract may have a different formal definition. Here are some of the different legal definitions for service contract:

  • Under the New Jersey Service Contract Act, "service contract" means a contract or agreement between a provider and a consumer for any duration, for a provider fee or other separately stated consideration, to perform, or to provide indemnification for the performance of, the maintenance, repair, replacement, or service of property for the operational or structural failure of the property due to a defect in materials or workmanship or due to normal wear and tear, and which may include additional provisions for incidental payment of indemnity under limited circumstances. In the case of a motor vehicle, such circumstances may include towing, rental, and emergency road services, and other road hazard protections. A service contract may provide for the maintenance, repair, replacement, or service of the property for damage resulting from power surges or interruption, or accidental damage from handling. A service contract also includes a motor vehicle ancillary protection product. Service contracts may provide for leak or repair coverage to house roofing systems. A “service contract” does not include a contract in writing to maintain structural wiring associated with the delivery of cable, telephone, or other broadband communication services or a contract in writing related to the delivery of satellite television or broadband communication services.
  • Under the Federal Warranty Law, service contract” means a contract in writing to perform, over a fixed period of time or for a specified duration, services relating to the maintenance or repair (or both) of a consumer product. An agreement which would meet the definition of written warranty but for its failure to satisfy the basis of the bargain test is a service contract. For example, an agreement which calls for some consideration in addition to the purchase price of the consumer product, or which is entered into at some date after the purchase of the consumer product to which it applies, is a service contract. An agreement which relates only to the performance of maintenance and/or inspection services and which is not an undertaking, promise, or affirmation with respect to a specified level of performance, or that the product is free of defects in materials or workmanship, is a service contract. An agreement to perform periodic cleaning and inspection of a product over a specified period of time, even when offered at the time of sale and without charge to the consumer, is an example of such a service contract.

NEW JERSEY BREACH OF WARRANTY FREQUENTLY ASKED QUESTION #3

WHAT ARE THE DIFFERENT KINDS OF WARRANTIES?

There are many kinds of warranties, such as the following:

  • Express warranty.
  • Implied warranty of merchantability.
  • Implied warranty of fitness for a particular purpose.
  • Implied warranty of good title.
  • Implied warranty of good workmanship.

NEW JERSEY BREACH OF WARRANTY FREQUENTLY ASKED QUESTION #4

WHAT IS AN EXPRESS WARRANTY?

An express warranty is:

  • any description of a vehicle or other product;
  • that the vehicle or other product meets that description; and
  • which is made part of the basis of the parties’ bargain; or
  • any sample or model which is made part of the basis of the parties’ bargain;
  • creates an express warranty that vehicle or other product shall meet the sample or model’s description.

For an express warranty to be created, it is not necessary for a seller to use formal words such as ‘warranty’ or ‘guarantee’ or that the merchant have a specific intention to make a warranty. However, if a seller merely makes a representation about the value of a vehicle or other product or a statement claiming to be merely the merchant’s opinion or recommendation about the vehicle or other product, such representations or statements do not create an express warranty.

NEW JERSEY BREACH OF WARRANTY FREQUENTLY ASKED QUESTION #5

HOW DO I PROVE A NEW JERSEY BREACH OF EXPRESS WARRANTY CLAIM?

A breach of express warranty requires a vehicle or other product buyer or a person with a right to enforce a vehicle or other product warranty (whether a consumer or business) to prove that:

  • The consumer or other person was provided with an express warranty by a merchant.
  • The consumer did what the warranty required them to do to do.
  • The merchant issuing the warranty did not do what the warranty required them to do, thereby breaching the warranty;
  • The breach of warranty was material – not something minor or unimportant; and
  • Within a reasonable time after the buyer discovers or should have discovered any breach, the buyer notified the seller of breach.
  • As a result of the breach, the value of the goods was substantially impaired.

In a breach of express warranty claim, the consumer claims that vehicle or other product did not meet the merchant’s factual claims or promises. Any factual claims or promises that seller makes to the consumer about vehicle or other product offered for sale and that become part of the basis of the parties’ bargain create a express warranty that vehicle or other product would meet the merchant’s factual claims or promises. From buyer’s standpoint the very purpose of the warranty is to provide goods that conform to the warranty and do so in an appropriate time. If a vehicle or other product undergoes repairs under a warranty by its manufacturer or seller for a defect and they cannot fix the defect in a reasonable period of time, the consumer may lose the substantial benefit of the consumer’s purchase and that consumer may be entitled to seek damages against the merchant. For example, suppose you buy a vehicle sold with a manufacturer’s warranty, its engine light comes on and you take the vehicle to the manufacturer’s car dealership 3 times for that problem to be fixed but after 3 times, the problem is still present. You may be able to sue the manufacturer for money damages because they failed to fix the problem after a reasonable opportunity to do so.

NEW JERSEY BREACH OF WARRANTY FREQUENTLY ASKED QUESTION #6

WHAT IS AN IMPLIED WARRANTY OF MERCHANTABILITY?

Under the implied warranty of merchantability, the car, truck, recreational vehicle, boat or other product must be reasonably fit for the general purpose for which it is manufactured and sold." Merchantability means "that the article sold should be of the general kind described and reasonably fit for the general purpose for which it should have been sold." For example, a car should provide safe and reliable transportation on the roadway. When a manufacturer of a car offers for sale and promotes the purchase of a car, an implied warranty that it is reasonably suitable for its ordinary use automatically arises. This can also occur if a dealer offers a car for sale.

NEW JERSEY BREACH OF WARRANTY FREQUENTLY ASKED QUESTION #7

HOW DO I PROVE A NEW JERSEY BREACH OF IMPLIED WARRANTY OF MERCHANTABILITY CLAIM?

To prove a New Jersey breach of implied warranty of merchantability claim, the consumer must prove:

  • The consumer purchased goods as defined by the Uniform Commercial Code.
  • The merchant selling the goods was a merchant with respect to goods of that kind.
  • There existed no valid exclusion or modification of an implied warranty of merchantability.
  • The goods weren’t fit for the ordinary purposes for which such goods are used.
  • Within a reasonable time after the buyer discovers or should have discovered any breach, the buyer notified the seller of breach.
  • As a result of the breach, the value of the goods was substantially impaired.

NEW JERSEY BREACH OF WARRANTY FREQUENTLY ASKED QUESTION #8

WHAT IS AN IMPLIED WARRANTY OF FITNESS FOR PARTICULAR PURPOSE?

Under the implied warranty of fitness for a particular purpose, an implied warranty that a car, truck, recreational vehicle, boat or other product is fit for a particular purpose arises when:

  • a buyer enters into a contract for the sale of the vehicle or other product.
  • the dealer knows or should know that the consumer requires vehicle or other product for a particular purpose; and
  • the consumer is relying on the merchant’s skill or judgment to pick or provide suitable goods.

For an implied warranty of fitness for a particular purpose to exist, the consumer must actually rely on the dealer’s skill or judgment rather than the consumer relying on their own skill or judgment in buying vehicle or other product.

NEW JERSEY BREACH OF WARRANTY FREQUENTLY ASKED QUESTION #9

HOW DO I PROVE A NEW JERSEY BREACH OF IMPLIED WARRANTY OF FITNESS FOR A PARTICULAR PUPOSE CLAIM?

To prove a New Jersey breach of implied warranty of fitness for a particular purpose claim, the consumer must prove:

  • The buyer purchased goods as defined by the Uniform Commercial Code.
  • The seller at the time of contracting has reason to know any particular purpose for which the goods are required and that the buyer is buying on the seller’s skill or judgment to select or furnish suitable goods.
  • The buyer relied on the seller’s skill or judgment to select or furnish suitable goods.
  • There existed no valid exclusion or modification of an implied warranty that the goods shall be fit for such purpose.
  • The goods were not suitable for the buyer’s particular purpose for which the goods are required.
  • Within a reasonable time after the buyer discovers or should have discovered any breach, the buyer notified the seller of breach.
  • As a result of the breach, the value of the goods was substantially impaired.

NEW JERSEY BREACH OF WARRANTY FREQUENTLY ASKED QUESTION #10

WHAT IS THE WARRANTY OF TITLE?

Title to goods is the right to own the goods. In every contract of sale there is implied a warranty of good title – that is, that the seller of the goods is the proper owner of the goods and has the right to pass title to a purchaser - unless such warranty is specifically excluded by the language or circumstances of the agreement. The purchaser of goods warranted as to title has a right to rely on the fact that the purchaser will not be required, at some later time, to enter into a contest over the validity of the purchaser’s ownership.

NEW JERSEY BREACH OF WARRANTY FREQUENTLY ASKED QUESTION #11

- HOW DO I PROVE A NEW JERSEY BREACH OF IMPLIED WARRANTY OF GOOD TITLE CLAIM?

To prove a breach of the implied warranty of good title, the consumer must prove the following:

  • There exists a valid contract for the sale of goods.
  • The contract does not expressly disclaim the transfer of valid title to the goods by specific language and no circumstances exist giving the buyer reason to know that the person selling does not claim title in themselves or that they are purporting to sell only such right or title as they or a third person may have.
  • The title conveyed to the buyer is not good and/or its transfer is not rightful and/or the goods are not delivered to the buyer free from any security interest or other lien or encumbrance of which the buyer at the time of contracting had no knowledge.
  • As a result of the breach, the consumer suffered damages.

NEW JERSEY BREACH OF WARRANTY FREQUENTLY ASKED QUESTION #12

WHAT IS AN IMPLIED WARRANTY OF GOOD WORKMANSHIP?

What happens when a merchant performs services to a vehicle or other product but fails to provide any written or oral warranty about the services and the services were poorly performed? What if you buy a vehicle or other product and the prior owner had services performed to the vehicle which turned out to be of poor workmanship? If a merchant providing services to a vehicle or other product owner but never issued the owner any written or oral warranty, the law implies a promise that the services will be performed in a reasonably good and workmanlike manner.

NEW JERSEY BREACH OF WARRANTY FREQUENTLY ASKED QUESTION #13

HOW DO I PROVE AN IMPLIED WARRANTY OF GOOD WORKMANSHIP CLAIM?

To prove a breach of the implied warranty of good workmanship claim, the consumer must show the following:

  • The parties had a valid services contract.
  • There existed no exclusion or modification of the implied promise that the services would be performed in a workmanlike manner and/or that the services would be fit for their intended purposes.
  • The services weren’t performed in a workmanlike manner and/or were not fit for their intended purposes.
  • As a result of the merchant’s un-workmanlike services, the consumer suffered damages.

NEW JERSEY BREACH OF WARRANTY FREQUENTLY ASKED QUESTION #14

WHAT IS THE SUBSTANTIAL IMPAIRMENT TEST IN BREACH OF WARRANTY CLAIMS?

In breach of warranty claims, the threshold test for whether a consumer can reject a vehicle or other product and seek money damages is whether vehicle or other product’s defect substantially impairs the value of the goods to the buyer. Under the substantial impairment test, whether a defect or nonconformity substantially impairs the use or value of the subject vehicle is not measured by a purely objective standard. Instead, when making such a determination, the factfinder must consider the viewpoint of the buyer and the buyer’s circumstances and decide whether a reasonable person in the buyer’s position would have believed that the defects or nonconformities substantially impaired the vehicle or other product’s value. Accordingly, the substantial impairment test is a combination of a subjective and objective test rather than merely an objective one. The mixed subjective/objective test allows the factfinder to consider a consumer’s reasonably shaken confidence in the vehicle or other product as a factor in determining if the substantial impairment test is met. The standard is subjective or personal in the sense that the facts must be examined in the viewpoint of the buyer and her circumstances but the standard is objective in the sense that the criteria is what a reasonable person in the buyer’s position would have believed. Under warranty law, a vehicle or other product’s value is substantially impaired if its defects affect its value in some serious way, such as by reducing its appraised value for resale. In that situation, the substantial impairment is met.

NEW JERSEY BREACH OF WARRANTY FREQUENTLY ASKED QUESTION #15

WHAT MIGHT A CONSUMER HAVE TO DO BEFORE CLAIMING THAT A BREACH OF WARRANTY OCCURRED?

If vehicle or other product does not meet the terms of a warranty, the consumer often must give the merchant notice of that fact within a reasonable time after the consumer discovered or should have discovered that vehicle or other product did not meet the terms of the warranty. When the consumer should have discovered that vehicle or other product did not meet the merchant’s factual claims or promises depends on all the facts and circumstances, including the nature of the defect, the time when vehicle or other product was put in use and whether the nonconformity was discoverable by customary and reasonable inspections. The consumer’s notice to a merchant of a defect is normally sufficient if it informs the merchant that the consumer claimed that vehicle or other product was defective. If the consumer gives the merchant this notice in a reasonable time after the consumer discovered or should have discovered the defect, then the merchant committed a New Jersey breach of express warranty and is responsible for paying the damages that the breach of express warranty caused the consumer to suffer.

NEW JERSEY BREACH OF WARRANTY FREQUENTLY ASKED QUESTION #16

WHAT REMEDIES ARE AVAILABLE TO BREACH OF WARRANTY VICTIMS?

In many consumer warranty cases, a consumer may recover the following remedies from the merchant that breaches a warranty:

  • All money paid to date to purchase the vehicle or other product, less a deduction for use of the vehicle or other product.
  • Attorney’s fees.
  • Litigation or arbitration costs.

TO LEARN MORE, GET A NO OBLIGATION CONSULT

Call Perlman DePetris Consumer Law for a no obligation phone consultation. Handling your case wrong from the beginning may only cost you more money and time in the end!! Try to do it right the first time by seeking legal advice from a competent lawyer! You might be entitled to be represented on a contingent basis, meaning that the attorney won’t get paid unless the case is successful and that the lawyer gets paid from your recovery instead of requiring you to pay attorney’s fees out of your own pocket up front. Other cases can be handled for a relatively small one-time payment of an up-front fixed attorney’s fee and with a contingent fee at the end of the case. Filing a claim yourself is very risky, since businesses often hire experienced defense attorneys to fight your case. Also, if you try to negotiate a settlement yourself, you may get less money than you deserve. You should always speak with an attorney before coming to any conclusions about your claim. Do not try to interpret the law by reading a website! Even if the facts of your case don’t fit Consumer Law requirements, you may be entitled to sue a business for a breach of your warranties under other state and federal laws or for a breach of contract or for some other type of claim and you may recover money damages, attorney’s fees and court costs.

DISCLAIMER

While this page gives some general background information, there is the danger that relying on this information alone could lead you to lose your claim. Laws and regulations frequently change and the law may have changed since the posting of this webpage. Factual differences between your case and cases described on this webpage can affect your chance of success. Don’t attempt to rely on the internet as the only source of information for your claim! Instead, get competent legal advice from a New Jersey licensed attorney. Call Perlman DePetris Consumer Law for a no obligation phone consultation.