Article 80Supplement v1, p. 80

COMMERCIAL LAWS SUPPLEMENT

b)

Any

person

who

shall

violate

the

provisions

of

paragraph (g) of Article 64 for the first time shall be

subject to a fine of not less than Five hundred pesos

(P500.00) or by imprisonment of not less than one (1)

month but not more than five (5) years or both, upon the

discretion of the court.

c) The owner-possessor or user of instrument of weights

and measure enumerated in paragraphs (h) to (k) of

Article 64 shall, upon conviction, be subject to a fine of

not

less

than

Three

hundred

pesos

(P300.00)

or

imprisonment not exceeding one (1) year, or both, upon

the discretion of the court.

CHAPTER III Consumer Product and Service

Warranties

ARTICLE 66. Implementing Agency . — The Department of

Trade and Industry, shall strictly enforce the provision of

this Chapter and its implementing rules and regulations.

ARTICLE

67.

Applicable

Law

on

Warranties . — The

provisions of the Civil Code on conditions and warranties

shall govern all contracts of sale with conditions and

warranties.

ARTICLE 68. Additional Provisions on Warranties . — In

addition

to

the

Civil

Code

provisions

on

sale

with

warranties, the following provisions shall govern the sale

of consumer products with warranty:

a)

Terms

of

express

warranty .

—

Any

seller

or

manufacturer who gives an express warranty shall:

1) set forth the terms of warranty in clear and readily

understandable language and clearly identify himself as

the warrantor;

2) identify the party to whom the warranty is extended;

3) state the products or parts covered;

4) state what the warrantor will do in the event of a

defect, malfunction of failure to conform to the written

warranty and at whose expense;

5) state what the consumer must do to avail of the rights

which accrue to the warranty; and

6) stipulate the period within which, after notice of defect,

malfunction or failure to conform to the warranty, the

warrantor will perform any obligation under the warranty.

b) Express warranty — operative from moment of sale. —

All

written

warranties

or

guarantees

issued

by

a

manufacturer, producer, or importer shall be operative

from the moment of sale.

1) Sales Report . — All sales made by distributors of

products covered by this Article shall be reported to the

manufacturer, producer, or importer of the product sold

within thirty (30) days from date of purchase, unless

otherwise agreed upon. The report shall contain, among

others, the date of purchase, model of the product

bought, its serial number, name and address of the buyer.

The report made in accordance with this provision shall

be

equivalent

to

a

warranty

registration

with

the

manufacturer, producer, or importer. Such registration is

sufficient to hold the manufacturer, producer, or importer

liable, in appropriate cases, under its warranty.

2) Failure to make or send report . — Failure of the

distributor to make the report or send them the form

required by the manufacturer, producer, or importer shall

relieve

the

latter

of its liability under the warranty:

Provided, however , That the distributor who failed to

comply with its obligation to send the sales report shall

be personally liable under the warranty. For this purpose,

the manufacturer shall be obligated to make good the

warranty at the expense of the distributor.

3) Retail . — The retailer shall be subsidiarily liable under

the warranty in case of failure of both the manufacturer

and distributor to honor the warranty. In such case, the

retailer shall shoulder the expenses and costs necessary

to honor the warranty. Nothing therein shall prevent the

retailer

from

proceeding

against

the

distributor

or

manufacturer.

4)

Enforcement

of

warranty

or

guarantee .

—

The

warranty rights can be enforced by presentment of a

claim. To this end, the purchaser needs only to present to

the immediate seller either the warranty card or the

official receipt along with the product to be serviced or

returned to the immediate seller. No other documentary

requirement shall be demanded from the purchaser. If

the immediate seller is the manufacturer's factory or

showroom, the warranty shall immediately be honored. If

the

product

was

purchased

from

a distributor, the

distributor shall likewise immediately honor the warranty.

In the case of a retailer other than the distributor, the

former shall take responsibility without cost to the buyer

of presenting the warranty claim to the distributor in the

consumer's behalf.

5) Record of purchases . — Distributors and retailers

covered by this Article shall keep a record of all purchases

covered by a warranty or guarantee for such period of

time

corresponding to the lifetime of the product's

respective warranties or guarantees.

6) Contrary stipulations — null and void . — All covenants,

stipulations or agreements contrary to the provisions of

this Article shall be without legal effect.

c) Designation of warranties . — A written warranty shall

clearly and conspicuously designate such warranty as:

1) "Full warranty" if the written warranty meets the

minimum requirements set forth in paragraph (d); or

2) "Limited warranty" if the written warranty does not

meet such minimum requirements.

d)

Minimum

standards

for

warranties .

—

For

the

warrantor of a consumer product to meet the minimum

standards for warranty, he shall:

1) remedy such consumer product within a reasonable

time and without charge in case of a defect, malfunction

or failure to conform to such written warranty;

2) permit the consumer to elect whether to ask for a

refund or replacement without charge of such product or

part, as the case may be, where after reasonable number

of attempts to remedy the defect or malfunction, the

product continues to have the defect or to malfunction.

The warrantor will not be required to perform the above

duties if he can show that the defect, malfunction or

failure to conform to a written warranty was caused by

damage due to unreasonable use thereof.

e) Duration of warranty . — The seller and the consumer

may

stipulate

the

period

within

which the express

warranty shall be enforceable. If the implied warranty on

merchantability accompanies an express warranty, both

will be of equal duration.

Any other implied warranty shall endure not less than

sixty (60) days nor more than one (1) year following the

sale of new consumer products.

f) Breach of warranties . — 1) In case of breach of express

warranty, the consumer may elect to have the goods

repaired or its purchase price refunded by the warrantor.

In case the repair of the product in whole or in part is

elected, the warranty work must be made to conform to

the express warranty within thirty (30) days by either the

warrantor or his representative. The thirty-day period,

however, may be extended by conditions which are

beyond the control of the warrantor or his representative.

In case the refund of the purchase price is elected, the

amount directly attributable to the use of the consumer

prior to the discovery of the non-conformity shall be

deducted.

2) In case of breach of implied warranty, the consumer

may retain in the goods and recover damages, or reject

the goods, cancel and contract and recover from the

seller so much of the purchase price as has been paid,

including damages.

© Compiled by RGL

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