Is it legal for manufacturer's warranty to be not transferable?

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starcub

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Master Geek

#249239 2-May-2019 09:34

I'm selling my old Huawei mobile phone and it's still within the manufacturer's warranty. I was reading the terms and conditions for Huawei's manufacturer's limited warranty

It says

2. The Warranty extends only to the original customer who purchased the Product, Charger, Battery and the Handsfree Kit in New Zealand and is not assignable or transferable to any subsequent purchase/customer.

So is it legal to not honour the original manufacturer's warranty once it's 2nd hand even it's still within the warranty period?

I had always thought the manufacturer's warranty is for the product itself, it shouldn't matter who owns it or how many owners the product has had?

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#2229212 2-May-2019 09:52

Good question, in my opinion I think it is probably legal as the is official warranty is contract agreed between the buyer and seller when the sale occurred.

Of more interest, is the CGA.

The CGA does not really have any details about making claims against the original retailer or manufacturer for second hand goods (assuming the product age is still within an expected lifespan).

But , the CGA does not specifically invalidate such situations, maybe a grey area?

starcub

84 posts

Master Geek

#2229223 2-May-2019 09:55

surfisup1000:

Good question, in my opinion I think it is probably legal.

The CGA does not really have any details about making claims against the original retailer or manufacturer for second hand goods (assuming the product age is still within an expected lifespan).

But , the CGA does not specifically invalidate such situations, maybe a grey area?

I guess the real question is does the CGA (and warranty) apply to the product or the original purchase?

maoriboy

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#2229233 2-May-2019 10:13

Would the CGA apply for second hand good sold privately though. I didn't think it did, but I could be wrong.

networkn

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#2229234 2-May-2019 10:16

maoriboy:

Would the CGA apply for second hand good sold privately though. I didn't think it did, but I could be wrong.

It could be pretty difficult to manage given you have no idea what the previous owner did. If the manufacturer states water damage, how can you be sure it's not?

I think it's fair that manufacturer warranties not be transferrable. Some car manafacturers do it if you buy from the registered dealer, say Audi for example with it's Silver Circle thing.

CYaBro

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#2229243 2-May-2019 10:41

I know with our new Pajero, the 10 year drive train warranty is only valid for us as the original purchaser.

However the standard 3 year warranty is transferrable.

Opinions are my own and not the views of my employer.

jonathan18

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#2229251 2-May-2019 10:57

networkn:

It could be pretty difficult to manage given you have no idea what the previous owner did. If the manufacturer states water damage, how can you be sure it's not?

I think it's fair that manufacturer warranties not be transferrable. Some car manafacturers do it if you buy from the registered dealer, say Audi for example with it's Silver Circle thing.

Some car manufacturers go further and cover the new owner even when the purchase was a private sale.

I'm sure this was the case with my car (a Mazda), which I bought at a year old - the provisions of the warranty are more around things like ensuring the car is serviced at an official Mazda service centre etc, than it being the original owner. They also transfer other benefits such as the three years of free servicing.

starcub

84 posts

Master Geek

#2229254 2-May-2019 11:08

In comparison, here's the Samsung warranty terms and conditions

https://www.samsung.com/nz/support/warranty/

It's transferable. So my question remains, does CGA say anything about the transferability of the manufacturer's warranty?

Warranty Transferability

A. This Warranty is transferable to a subsequent owner of a Samsung consumer product, in the event of the sale of that product, provided that Samsung is informed in writing within a reasonable time of the sale of the subsequent owner's name and contact details, such notice to be provided to Samsung as follows:

•www.samsung.com/nz - for customers in New Zealand.

The notice should identify the name of the previous owner of the Samsung consumer product, place and date of purchase, model, make and serial number of the product. The effective transfer of this Warranty does not otherwise alter the terms of this Warranty in any way.

B. In cases of authorised product or part replacement of the original purchased Samsung product, the replacement Samsung product or part will be covered for the remainder of the original Warranty Period.

Sharesies

Trade NZ and US shares and funds with Sharesies (affiliate link).

jonathan18

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#2229301 2-May-2019 11:21

Why would the CGA specify content in relation to the transfer of manufacturer warranties?

Clearly, nothing in an additional warranty can take away from the rights/responsibilities under the CGA, but I'd have thought that whether such a warranty is transferrable is up to the company offering that warranty, in as far as it relates to anything that is over and above what is required by the CGA.

As to whether the CGA covers private sales of s/h goods - I don't think it covers any private sales, whether the product is new or s/h. It does cover the sale of s/h goods by a business, however. Consumer's site has a number of examples that reflect this: https://www.consumer.org.nz/articles/consumer-guarantees-act-faqs-about-goods

IANAL so expect to be slammed by our resident lawyer if anything I've written above is wrong!

surfisup1000

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#2229333 2-May-2019 11:46

jonathan18:

Why would the CGA specify content in relation to the transfer of manufacturer warranties?

Clearly, nothing in an additional warranty can take away from the rights/responsibilities under the CGA, but I'd have thought that whether such a warranty is transferrable is up to the company offering that warranty, in as far as it relates to anything that is over and above what is required by the CGA.

As to whether the CGA covers private sales of s/h goods - I don't think it covers any private sales, whether the product is new or s/h. It does cover the sale of s/h goods by a business, however. Consumer's site has a number of examples that reflect this: https://www.consumer.org.nz/articles/consumer-guarantees-act-faqs-about-goods

IANAL so expect to be slammed by our resident lawyer if anything I've written above is wrong!

Yes, manufacturer warranties are irrelevant in the context of the CGA.

You are unclear though -- granted, the CGA does not give any protection against the seller in private sales . . . But, do you lose your rights to make a claim against the original retailer when ownership transfers? There is nothing in the CGA that says you lose rights against the manufacturer when ownership changes.

It is unclear... I have previously purchased 2nd hand goods on trademe and asked for the receipt.... in the anticipation of being able to make a CGA claim if the product develops a manufacturing defect. But, I was never sure if that was possible.

mattwnz

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#2229468 2-May-2019 14:04

How would they know if you have purchased it second hand, if you have a copy of the original receipt?

surfisup1000

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#2229488 2-May-2019 14:29

mattwnz:

How would they know if you have purchased it second hand, if you have a copy of the original receipt?

It is increasingly common to have ones name on the invoice or in the retailers database.

MurrayM

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#2229496 2-May-2019 14:45

starcub:

Warranty Transferability

A. This Warranty is transferable to a subsequent owner of a Samsung consumer product, in the event of the sale of that product, provided that Samsung is informed in writing within a reasonable time of the sale of the subsequent owner's name and contact details, such notice to be provided to Samsung as follows:

•www.samsung.com/nz - for customers in New Zealand.

The notice should identify the name of the previous owner of the Samsung consumer product, place and date of purchase, model, make and serial number of the product. The effective transfer of this Warranty does not otherwise alter the terms of this Warranty in any way.

I wonder how many people actually do this? Not many I bet.

sen8or

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#2229538 2-May-2019 16:26

Isn't the offering of a warranty part of the contract between buyer and seller (or the sellers appointed agent), I guess it comes down to what right does a private seller have to commit the manufacturer to extend the warranty to someone from whom the manufacturer received no commercial benefit?

Ofcourse, things like brand reputation, good will and the point that even though its not the original purchaser claiming it is probably irrelevant to the fact that a product faulted within a short period of time from the date of the original sale, means that many manufacturers are happy to have transferable warranties, but as a matter of "legal right", I'm dubious.

If you have the original receipt I doubt many manufacturers would go to the effort of disproving you were the original purchaser, and as per above, brand reputation carries a lot of weight these days.

sen8or

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#2229543 2-May-2019 16:35

CGA specifically excludes all transactions other than "in trade" -

41 Exceptions

(1)

Nothing in this Act shall apply in any case where goods or services are supplied otherwise than in trade.

bluey

82 posts

Master Geek

#2229596 2-May-2019 17:37

It's one good thing about apple products.

Just dump it on the counter and it's either within warranty period or not. Makes no difference who the current owner is..

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