What customers are entitled to in the event of defective new goods
It always feels a bit like Christmas: the parcel delivery driver rings the bell, asks for an autograph and hands over a package. Or the friendly sales assistant scans the box at the till and takes a few banknotes. Either way, a long-cherished wish has come true and, after a short or long period of anticipation, you finally have the item in your hands. That makes the disappointment all the greater when the brand-new goods turn out to be faulty. Fortunately, there are clear rules governing the issues of “guarantee” and “warranty” – so that annoying disappointment does not turn into real anger.
- What is a defect?
- The difference between warranty and guarantee
- Keeping an eye on deadlines: time is of the essence
- A warranty case: what is the customer entitled to?
- Special cases: private sales and Christmas
What is a defect?
To explain the subject, let us take an office chair as an example – bought by the ever-popular Mr Müller in cases like this. In the showroom of an office furniture store, he had a friendly salesperson explain the difference between an ergonomic office chair and an orthopaedic office chair, made his choice, paid – and collected the piece of furniture from the goods collection point in its original packaging. Once home, Mr Müller unpacks his chair and discovers that the left armrest is broken.
A clear case: this is a defect. An ergonomic office chair requires a functioning armrest, just as a coffee machine should make coffee and a camera should take pictures. That follows from the very nature of the product. A defect also exists if goods do not have the agreed quality or do not possess the properties agreed between seller and buyer. A better example here would be that Mr Meier bought waterproof hiking boots and ended up with wet socks at the very first drizzle. A defect may also be present if a coat has open seams, a table has a loose leg or a lamp has a holey shade. In all these cases, the customer is entitled to a warranty claim.
The difference between statutory warranty and guarantee
What is often colloquially referred to as a “guarantee” is correctly called a “statutory warranty” and is regulated as follows: As a general rule, the seller is responsible for ensuring that the goods they sell work properly. In other words, they must guarantee that the respective product has the quality that either follows from the nature of the item – or has been agreed. If this is not the case, the customer has the right to demand a repair or a replacement product – naturally in return for handing back the defective item. This is laid down by law and does not need to be agreed separately at the time of purchase.
Now, Mr Müller’s office chair also comes with a manufacturer’s guarantee. Many manufacturers, especially well-known brands, place great importance on maintaining their good reputation. In this respect, Mr Müller’s decision to choose a product from a renowned manufacturer also turns out to be a wise one, because the manufacturer guarantees that its ergonomic furniture will function properly for at least 12 months. Mr Müller now has the choice of whether to take his chair back to the shop and exchange it for another one – or contact the manufacturer directly. If Mr Müller decides to return to the retailer, the retailer may not fob him off with the manufacturer’s guarantee: a manufacturer’s guarantee does not limit the seller’s statutory warranty obligation.
Keeping an eye on deadlines: time is of the essence
However, Mr Müller should not take too long to make his decision: within the European Union, customers have two years for new goods and one year for used goods to claim their statutory warranty rights. After that, however, things become a little more complicated when it comes to the burden of proof: the law follows the likely assumption that defects which appear in the goods within six months of the purchase date were already present at the time of purchase.
During the first six months, the burden of proof therefore lies with the seller. This means: if the office furniture retailer from whom Mr Müller bought the chair does not want to replace or repair the item, the seller must prove that Mr Müller caused the damage himself. After the six-month period, Mr Müller must prove that he did not cause the damage – and has two years from the date of purchase to do so. The seller is also not allowed to refer Mr Müller to a third party who is supposed to bear the cost of the replacement.
Incidentally, Mr Müller would also have statutory warranty rights if he had bought his office chair from an online retailer abroad. It does occasionally happen that retailers in cross-border transactions do not want to guarantee that the new goods will arrive in perfect condition. However, by doing so they violate applicable EU law: statutory warranty rights apply throughout the EU. Longer periods apply to building materials, by the way: manufacturers of roof tiles, laminate or parquet flooring, and bricks must be liable for their proper usability for five years. These periods may not be shortened – but they may be extended by the seller. Sellers are often more generous, especially with high-quality items in the category of “something you buy only once in a lifetime”.
A warranty case: what is the customer entitled to?
Mr Müller has now decided to settle the matter immediately with the specialist office chair retailer and thus make use of his statutory warranty rights. He packs the chair up again and takes it back. At the information desk, a friendly member of staff immediately acknowledges that an office chair with only one armrest is defective. Using the receipt, she has valid proof that Mr Müller has come forward within the six-month period. She must now offer him the following options: Mr Müller can return the defective chair and request another one. Alternatively, he can request a repair.
This case becomes interesting if Mr Müller has bought the last available example of this office chair type and does not want to consider any other model. The retailer would then have to send it in for repair. If transport costs, travel costs, labour costs or material costs arise, the office chair seller must cover them. A look at the law reveals this: Mr Müller can set the workplace furniture supplier a deadline within which the damage must be remedied. If the seller does not supply defect-free goods within this period or does not carry out the repair, Mr Müller can withdraw from the purchase contract or reduce the purchase price. Even if the chair still has not been fitted with a functioning second armrest after two repairs, this is generally deemed to mean that the repair has failed – and Mr Müller could withdraw from the purchase contract.
Special cases: private sale and Christmas
Now let us assume that Mr Müller did not buy his new desk chair in an office furniture store, but from a neighbour or from a private individual as a result of an eBay auction – then the situation is different. Unlike commercial sellers, private individuals can exclude the statutory warranty. However, the neighbour would have to state this, or the eBay seller would have to include the following wording in the item description: “The goods are sold excluding any warranty.” However, this exclusion would be invalid if Mr Müller could prove that the seller knew about the broken armrest, deliberately concealed it or knowingly made false statements. Special rules also often apply at Christmas: since gifts are often bought well before Christmas, online retailers in particular sometimes voluntarily offer an extended warranty period. It is worth checking the terms and conditions here – because customers cannot demand the extension, not even by referring to the item being a “Christmas present”.