There is one important legal pitfall that small business owners who sell or lease goods should be aware of—the creation of a warranty. A warranty is an assurance that leased or sold goods will perform to a certain standard, are fit for a particular purpose or are fit for their ordinary purpose. Warranties are either express or implied in law.
An express warranty is created by representations of a seller or lessor of goods that they conformed to a certain quality, condition or performance. An express warranty can be created even if there wasn’t an actual intent of the seller or lessor to do so. A small business owner should be careful in their customer relations so that they do not inadvertently do so. An owner may want to examine their advisements and review any written material or statements that they provide to customers. [Read more...]