Warranty For Products You Buy As An Entrepreneur
EntrepreneurLaw and Tax Changes
Product guarantee is a right and a duty that every consumer and seller has when buying and selling products and services.
The guarantee has its origins in the value of the word and the history of use of the products. From that moment, commercial confidence is born, which is very important to strengthen to make new purchases.
But, not all guarantees are the same. The terms and conditions change depending on the type of product and the type of buyer.
In this article, we will review the conditions that generally govern product warranties when the purchase has been made by a legal entity, either as a consumer or as a recipient of goods or services, to integrate them into production, transformation, marketing or provision to third parties.
What is a product warranty?
The guarantee, in general, is defined in the dictionary as the action exercised by a person, a company or a business to secure what has been opportunely stipulated in a contractual commitment, that is, through the presentation of a warranty. This type of document seeks to provide greater security when fulfilling an obligation or paying a debt, as the case may be.
In the case of purchase guarantees, it is also a document of great value for the purchase decision by the user. That is mainly when it comes to electronic products since the consumer can cancel a purchase where the guarantee does not exist or is unclear.
To activate this type of guarantee, the manufacturer must place the date on which the product is purchased in a document since the product’s warranty begins to run at the same time of purchase. If this date is not precise, you cannot use the guarantee.
What about the warranty if the buyer is a company?
When a company purchases a product, and it breaks down, in general, the buyer calls the store to use the product guarantee, waiting for a free repair or exchange for another product of the same or similar characteristics. Sounds easy, right?
But the reality is that it is not always that simple, since, if you don’t have a purchasing team, legal advice or don’t have experience, it is only at that moment that you find out about the reality of product guarantees for companies. Most of the time, the term of the guarantees of the products sold to companies is expired when making a claim.
And this is so because the products only have a “long” warranty (the one described in the product specifications) when they are purchased by “consumers and users”. Unfortunately, the definition of this group doesn’t include companies since they use the purchased product to carry out some economic activity.
What does the law say?
To better understand this point, we have extracted from Law 26/1984, of July 19, General for the Defense of Consumers and Users, who are considered consumers:
- For the purposes of this law, are consumers or users natural or legal persons who acquire, use or enjoy as final recipients, movable or immovable property, products, services, activities or functions, whatever the public or private, individual or collective nature of those who produce, facilitate, supply or dispatch them …
- They will not be considered consumers or users who, without becoming final recipients, acquire, store, use or consume goods or services to integrate them into production processes, transformation, marketing or provision to third parties …
So keep in mind that the important thing is not whether a natural or legal person made the purchase, but the use that will be given to the product.
The products you buy for commercial use have a maximum guarantee of six months immediately upon purchase. In other words, if your office computer breaks and it has been more than six months since you purchased it, you will have to bear the cost of the technical service, even if the warranty says it has a term of two years.
On the other hand, when you buy it and the product is not part of the production goods, the legal person has all the right to claim a consumer.
As a consumer, even if you are a legal entity, if there is a problem with the product you have purchased, you can apply the legal guarantee governed by Law 23/2003 on guarantees in the sale of consumer goods. You can even go to court if the supplier refuses to repair the item or offer you a new one with similar characteristics.
Can the warranty be extended?
However, there is an option that you can make use of when it comes to purchasing goods for the production process. It is about agreeing with the supplier of the product a new warranty period different from that stipulated by law.
In this case, if you agree to an extended guarantee, let’s say two years, you would be having a guarantee similar to what a consumer or user would get.
You must request this type of agreed guarantee in writing from the supplier. At the same time, you must make sure that it is a valid product guarantee, even if you use the good in your business activity. In this way, the supplier may not refuse to exercise it under any circumstances.
So now you know! The next time the seller or the company’s technical service refuses to repair or change the defective product, claiming that the legal entity is not a consumer, take a look at our article and check if the product you have bought fits inside or not in the conditions covered by the Spanish law of guarantees in the sale of consumer goods.
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