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What is your warranty exposure and does it exceed manufacturer warranty
August 26, 2022
What is your warranty exposure and does it exceed manufacturer warranty
          In reading the Residential All in One warranty I'm wondering if I'm obligated to repair/replace all components of a system that I sell for one year.  
          In reading the excerpt below it looks like I am obligated except for in some cases because I'm not the manufacturer of the equipment.  Many manufacturers offer warranties less than one year.  Do I need to mark my prices up to be able to replace these items if they go bad? 
          I do have a customer where I sold them a lock and I contracted with a locksmith on their behalf to install it and now it's having some issues.  In addition to this they are not happy with some software notifications for some cameras that run on Honeywell Total Connect platform and they expect me to make sure this works to their satisfaction.  
          I want to help and this will come at a considerable expense to me and it looks like I can't charge them for my technician's time.  Depending on your opinion I may or may not sell some of these items in the future.
          Thank you very much in advance for your help in clarifying this.
          Your warranty, which is a limited warranty, is separate and distinct from the warranty offered by the manufacturer.  The Residential All in One does provide for a one year limited warranty and that may exceed the warranty offered by the manufacturer.
          Why is it one year as opposed to 60 or 90 days, or for that matter, limited to the manufacturer’s warranty?  There is more than one reason.  First, some jurisdictions require that consumer contracts provide for a one year warranty.  Second, many alarm companies want the one year warranty as a marketing strategy.  Third, many consumers will look for the one year warranty and raise objection to a shorter time.
          What can and should you do?
          The limited warranty does come with exclusions:
                 “This warranty does not include batteries, electrical surges, lightning damage, software upgrades and repairs, communication devices that are no longer supported by communication pathways, obsolete components, and components exceeding manufacturer’s useful life.” 
           Also you can use new or used equipment for replacement parts.
          This potential warranty issue is one more reason you should be selling a Service Plan when you are doing a new installation.  A Service Plan does have the same limitations but is not limited to one year; Service Plans are for the term of the All in One agreement, which is 5 years unless you shorten it. 
          I can’t opine on your exposure between end of manufacturer’s warranty and your one year warranty, but it seems to me that most manufacturer defects will occur within the relatively short manufacturer’s warranty period.  Most equipment that fails is likely caused by something other than ordinary wear and tear, so you won’t have to cover it.  Obviously if it’s an installation defect you should cover it, but that should be obvious well before even the shortest limited warranty period expires. 
          This is a great question, but it’s a first for as long as I can remember, so it is not likely a common issue.  You engaged a locksmith to install the lock [or whatever was installed].  You should have a warranty from the locksmith.  If you engaged the locksmith as part of your contract with the customer then you are responsible to the customer.  If you recommended the locksmith then the customer will have to look to the locksmith if he was independent from your contract with the customer. 

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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301