guarantee and warranty presentatiton by zaki and groups
DESCRIPTION
This is a small presentation on the topic guarantee and warranty prepared by a team of MBA students based on collaborative learning and communication in the subject of strategic management and business policy. The team members are my self zaki(team leader), vishnu thilagam, parvathy, vatchala, edison and ragini from chennai. Please rate the presentation.TRANSCRIPT
GUARANTEE
&
WARRANTY
04/08/2304/08/23 guarantee and warrantyguarantee and warranty 22
Project by CLC Project Team 1 Project by CLC Project Team 1
Comprising of………….
A.M.Ashfaq Zaki Parvathy Viswanathan Ragini Thomas Edison Vatchala Devi Vishnu Thilagam A.S.
Under inspiration and guidance from
Mr. Akbar Ansari, Faculty for Strategic Management
MEASI INSTITUTE OF MANAGEMENT
04/08/2304/08/23 guarantee and warrantyguarantee and warranty 33
Topics and presenter Topics and presenter
• Basic Definitions-Thomas Edison
• Distinction between the terms- Ragini
• Uses of the terms- Vishnu
• Legal obligations -Parvathy
• Types of guarantees and warranty- Vatchala
• Warranty policy and summary - Zaki
Basic Definitions
of
guarantee
and
warranty
No. of Persons in Guarantee
Warranty Division
Essentials
of
Warranty
Distinction
between
Guarantee and Warranty
DISTINCTIONSDISTINCTIONS
GUARANTEEGUARANTEE Contract to perform the Contract to perform the
promise or discharge the promise or discharge the liabilityliability
TripartiteTripartite Curing of defects or Curing of defects or
replacementreplacement Express or impliedExpress or implied
WARRANTYWARRANTY State of the subject of State of the subject of
contractcontract
BilateralBilateral Claim for damagesClaim for damages
Express & written Express & written unless implied under unless implied under sale of goods actsale of goods act
Uses of the terms
Guarantee & Warranty
Guarantee
Types of guaranteeUse/ purpose
To obtain Loan
Credit purchase/sales
For good conduct OrHonesty of person
Uses of the term guarantee
1.By the country/states: Constitutional guarantee for
civil liberties (Freedom of speech,expression…..)
2.By business Performance guarantee
Drawing lessons from their
western counterparts, domestic banks have now begun insisting on equipment supplier performance guarantees for infrastructure projects( The Hindu, Bangalore, May 27,2008)
Guarantee offered by a gym
Satisfaction guarantee Points to note
– 100% refund of money if not satisfied with performance.
Guarantee signifies assurance.
Guarantee signifies satisfaction
Used as marketing tool
Guarantee by banks/fin institutions
3. By banks and financial institutions: Credit guarantee( Export credit guarantee
corporation - ECGC) Established in 1957 by Govt of India Apart from other work they offer, guarantees
to banks and financial institutions which makes it easy to obtain export finance.
Bank Guarantee Performance Guarantee: Drawing lessons
from their western counterparts, domestic banks have now begun insisting on equipment supplier performance guarantees for infrastructure projects( The Hindu, Bangalore, May 27 ).
Guranteed benefits by insurance firms
Life Insurance Corporation of India is planning to garner Rs 25,000 crore through its new ‘single premium’ endowment product offering ‘Jeevan Aastha’.
The plan would offer guaranteed benefits on maturity and death.
The plan offers a guaranteed return of 10 per cent of the maturity sum assured for a 10-year term (Hindu, Dec. 8,2009)
Guarantee by placement firms
4. By Training Institutions Placement guarantee Check difference between assistance
and assurance. Most Business schools use the sentence “100%
placement ASSISTANCE”. Observe carefully the tricky word in that sentence, i.e. ASSISTANCE. No single B school will use words like ASSURANCE or GAURANTEE. Because, the word ASSISTANCE has no legal binding but Guarantee has legal binging. In other words, they are not confident in getting you a job and you just can’t do anything if they fail to get you the placement. BITM issues Placement Guarantee Card duly signed by the Director himself on the first day of admission to all its students.
Given below is the Placement Guarantee Card. It is absolutely a straight offer as we are 100% confident on our teaching methodology.
Courtesy: www.bitmcollege.com/placement.htm
Data security guarantee
5. E business firms– Data security
guaranteeAmidst all the talk of the transformative powers of Web 2.0 and Government 2.0, ensuring data privacy and security remains a major challenge for private and public sector actors. Case in point: the UK Government announced earlier today that it lost track of two disks holding over personal data on over 25million UK citizens. The lost data includes names, addresses, dates of birth, National Insurance numbers, and in some cases, bank details.
– Now, unlike the opposition figures quotes in the aforementioned BBC piece, I’m no fear monger but cases such as the question “is our information ever secure?” I for one believe the answer is no. No one, in either the private or public sector, can guarantee 100% data security. We recently interviewed UK CIO John Suffolk and he echoed this view, noting that in a loosely federated world, providing a guarantee of end-to-end security is the ultimate challenge.
SOFTWARE-WARRANTY CLAUSE!
This software "Extra Boy Pro" is provided "as is" without warranty of any kind.
The author makes no guarantee of correctness, accuracy, reliability, safety or performance. You alone are responsible for determining if this software is safe for use in your environment.
Neither the author, Elevayta, nor anyone else who has been involved in the creation or delivery of this product shall be liable for any direct, indirect, consequential, or incidental damages arising from the use or inability to use such product even if the author has been advised of the possibility of such damages.
( software to isolate vocals from songs)
www.freemusicsoftware.net
PRODUCT WARRANTY
WARRANTY CLAUSEMETROSONICS warrants each new cl-304manufactured and sold to
be free from defects in material,workmanship and construction, except for batteries whichmay be contained therein, and that when used inaccordance with this owner's manual will perform toapplicable specifications for a period of one year aftershipment.
If examination by METROSONICS discloses that the product has been defective, then our obligation is limited to repair or replacement, at our option, of the defective unit or its components.
METROSONICS is not responsible for products which have been subject to misuse, alteration, accident or for repairs not performed by METROSONICS.
Source: metrosonics acoustic calibrator- Users manual
AUTOMOBILE WARRANTY -Maruti
1. Warranty Every Maruti Suzuki Certified used car is refurbished with
Maruti Genuine parts at the state of the art Maruti workshops. We are 100% confident that the car you buy meets strict Maruti
Suzuki quality standards. However, should you face any problem, our comprehensive warranty up to 1 year & 3 free services ensures that the problem is taken care of and assures you “complete peace of mind”.
AUTOMOBILE WARRANTY- Maruti
2. Warranty Coverage:
The warranty covers all mechanical and electrical parts except the following:
All wear and tear parts, parts worn due to aging, consumables like oil, filters, spark plugs, C.B. points, fuses, bulbs, paint problems, A/C gas leak, battery, tyres, rubber and plastic items.
AUTOMOBILE WARRANTY- Maruti
The warranty covers all mechanical and electrical parts except the following:
All wear and tear parts, parts worn due to aging, consumables like oil, filters, spark plugs, C.B. points, fuses, bulbs, paint problems, A/C gas leak, battery, tyres, rubber and plastic items.
AUTOMOBILE WARRANTY- Maruti
•The warranty varies with age & mileage of the car which is as shown below:
Age Mileage Warranty Coverage
Up to 5 Years Less than 100,000 kms
comprehensive. One year or 15000 kms
More than 5 yrs & Up to 7 yrs
ess than 100,000 kms
Comprehensive. Six months or 7500 kms
More than 7 years & up to 10 yrs
Less than 100,000 kms
No warranty
Uses of warranty
• By business firmsTo enhance their valueShow of qualityAssurance of product performance
Legal obligations
LEGAL OBLIGATIONS-LEGAL OBLIGATIONS-GUARANTEEGUARANTEE
1.1. ConcurranceConcurrance2.2. Primary liability in some personPrimary liability in some person3.3. Essentials of a valid contractEssentials of a valid contract4.4. Writing not necessaryWriting not necessary5.5. Contract of uberrimae fidelContract of uberrimae fidel6.6. Nature of surety’s liability – it is Nature of surety’s liability – it is
coextensivecoextensive7.7. Limitation of surety’s liability-Limitation of surety’s liability-
LimitedLimited
LEGAL OBLIGATIONS -WARRANTY• A warrantor shall fulfil the following
obligations:• Full and conspicuous disclosure of
terms and conditions; additional requirements for contents such as:
(1) The clear identification of the names and addresses of the warrantors.
(2) The identity of the party or parties to whom the warranty is extended.
(3) The products or parts covered.
LEGAL OBLIGATIONS WARRANTY– A statement of what the warrantor will do in the event of a defect, malfunction, or failure to
conform with such written warranty--at whose expense--and for what period of time.– (5) A statement of what the consumer must do and expenses he must bear.– (6) Exceptions and exclusions from the terms of the warranty.– (7) The step-by-step procedure which the consumer should take in order to obtain performance of
any obligation under the warranty, including the identification of any person or class of persons authorized to perform the obligations set forth in the warranty.
– (8) Information respecting the availability of any informal dispute settlement procedure offered by the warrantor and a recital, where the warranty so provides, that the purchaser may be required to resort to such procedure before pursuing any legal remedies in the courts.
– (9) A brief, general description of the legal remedies available to the consumer.– (10) The time at which the warrantor will perform any obligations under the warranty.– (11) The period of time within which, after notice of a defect, malfunction, or failure to conform with
the warranty, the warrantor will perform any obligations under the warranty.– (12) The characteristics or properties of the products, or parts thereof, that are not covered by the
warranty.– (13) The elements of the warranty in words or phrases which would not mislead a reasonable,
average consumer as to the nature or scope of the warranty.– (b) Availability of terms to consumer; manner and form for presentation and display of information;
duration; extension of period for written warranty or service contract– SOURCE:Magnuson Moss Warranty Act FROM INTERNET
Types
of
guarantees and warranties
Types of guarantee
Based ontime
Retrospective Prospective
Types of guarantee
Based on continuity
Specific Continuous
Types of Bank Guarantee Guarantee in regards to goods Guarantee on a person• Tender guarantee/bid bond (EMD)• Performance Contract Guarantee(PBG)• Credit guarantee/Supply guarantee• Custom bond• Guarantee for exemption of customs duties• Advance Payment guarantee• Guarantee for honoring cheque source: http://quanterion.com
Warranty types
Based on time
Limited period warranty
Extended warranty
Life time warranty
Warrranty types…
Based onFormality
Expressed Implied
Warranty types
For Consumer Goods
Ordinary freeReplacement
type
Unlimited freeReplacement
type
Prorata type
Warranty types
Manufacturer
ReplacementWarranty
RepairWarranty
Seller
Replacement Warranty
Repair warranty
Guarantee-general requirement
Maintain business ethics Maintain good conduct Maintain good relations with banks and other
stake holders.
Warranty Policy
Warranty Policy
Selection of type of warranty free replacement-advantage buyer pro-rata-advantage seller mixed policy is a compromise.
Warranty Planning inputs
whether the product is repairable or non-repairable
repair cost warranties offered by competitors Average break down probability
Warranty Policy
Should be consistent with the product type, design, type of use, nature of use
Should be explicit and necessarily in writing Paperless administration preferable Good administering mechanism
Summary
Summary Guarantee implies promise, pledge,
agreement, security, surety Warranty is undertaking, certification and in
general terms a contract. While guarantee is towards intended
performance, warranty is extension of contract/service
Guarantee is used by many institutions while warranty is mainly used in business products.
Summary
Organizations offer warranty to express their Products superior quality Support after sales Maintain customer value
Warranty shall be in clear terms unless is implied.
Summary
Individuals and organizations shall adopt good conduct and ethics to obtain guarantee value
Organizations shall have clear cut warranty policy and efficient warranty administration.
References
Elements of merchantile law by N.D.Kapoor
The Commercial Loan Guaranty – Types & Techniques Rick L. Knuth
http://www.aqualung.com Microsoft Students encarta
encyclopedia www.Wikipedia.com
PRACTICE AND DISCIPLINE GURANTEES SUCCESS
-DHRONACHARYA
THANK YOUTHANK YOU