buyer and a seller. The contract states that if the buyer pays
a specified amount, then the seller will give the buyer the
designated product. A "warranty" is usually defined as an
assurance made by the seller about the product that may be
relied upon by the buyer. If the assurance turns out to be
untrue then, not surprisingly, the contract of sale is invalid.
made by the seller about the product. The affirmation becomes
part of the basis of the bargain between the buyer and seller,
creating an express warranty that the goods conform to the
affirmation. It is not necessary that the seller use formal words
like "warrant" or "guarantee" to create an express warranty.
For example, if a manufacturer marks a gold ring with a
"14Kt" stamp, the manufacturer has expressly warranted to
his customer, a retailer, that the ring is composed of 14Kt gold.
If, in fact, the fineness of the gold is 12Kt, and not 14Kt, the
manufacturer has breached the express warranty and the sales
contract between the parties is invalid, even though the word
"warrant" was never used.
warranties are automatically part of any product sale, and do
not need to be expressly communicated to be enforceable.
One implied warranty, the "Warranty of Merchantability,"
requires that goods be "fit for the ordinary purposes for which
such goods are used." So, for example, if a jeweler sells a
watch, he is bound by an implied warranty that the watch
will keep time, even if he never expressley states anything
of the sort.
is triggered when the seller knows that the buyer is relying
on the seller's skill or judgment to select suitable goods for
a particular purpose. For example, say that the same jeweler
offers a particular watch to a customer who is about to leave
on a snorkeling vacation, knowing that the customer is relying
on the jeweler's knowledge to select a water-resistant watch.
In offering the watch, the jeweler has just warranted that it is
fit for snorkeling, whether he expressley says as much.
common-sense expectations, essentially the same expectations
that consumers bring to the marketplace when shopping for
cars or computers or any other product. The law protects these
reasonable expectations--that a car will drive, a computer
will process information, a ring will hold a stone and a stone
will measure up to a salesperson's representations. Knowing
the law in this area is a good way to avoid disappointed
customers--or, worse yet--disappointed customers with
lawyers.
jewelers should maintain up-to-date information on all
applicable regulations, and make sure that employees are
trained in the relevant law. The JVC is available to help the
jewelry industry fulfill its obligations by providing general
educational resources--as well as jeweler-specific guidance.
information provided by the JVC constitutes legal advice.
appropriate outcome. In making the sale, the jeweler in the first
case was bound by the implied Warranty of Merchantability, meaning
that he had warranted the engagement ring to be fit for the ordinary
purpose for which engagement rings are used. The ordinary purpose
of an engagement ring is to hold onto a diamond for a very long
time, preferrably "forever," since diamonds are, well, just that. The
ring failed in that task, before the wedding no less, even after two
repair attempts. Thus, the implied "Warranty of Merchantability"
was breached, and the sales contract between the buyer and seller was
invalid. Since there had not been a valid sale, the store's return policy
of thirty days was no bar to the return of the ring, for a full refund.
grading reports. The outcome in this case will thus depend upon
the results of a "tie-breaker" report, one prepared by an independent
gemologist or laboratory with excellent credentials, recognized by
the industry, and acceptable to both the jeweler and to the JVC.
Should the final determination be that the diamond is "K" color and
"SI-1" clarity, and not "G," "VS-1" as represented by the jeweler,
then the jeweler must accept the return of the ring. In affirmatively
representing the color and clarity grades of the stone on both a
sales receipt and on a "Statement of Value," the jeweler expressley
warranted that the diamond was a "G," "VS-1" rated stone.
express warranty made by the retailer directly to the purchaser. The
consumer's contract was with the jeweler, and it was the jeweler's
representations about color and clarity, clearly stated on the store
receipt and statement of value, that created the express warranty.
The jeweler is bound by that warranty. If the stone turns out to be
something other than expressley warranted, then the sale is invalid
and the consumer is on solid ground in asking for a full refund. The
jeweler, of course, may decide to ask for his money back from his
supplier based upon the same principal the supplier warranted to the
jeweler that the color and grade of the diamond were as represented
on the grading report. If that turns out not to be the case, the warranty
was breached.
applicable to this case. Both federal and state law prohibit false
advertising as well as deceptive acts and practices on the part of
sellers. Violation of these laws exposes retailers to lawsuits, as well
as government sanctions.
don't let the customer think that you have. Knowing diamonds and
having your Registered Jeweler, Certified Gemologist or Certified
Gemologist Appraiser title, empowers you to sell with confidence
and REALLY stand behind your product. The AGS Diamond
Quality