Guidance on warranties and disclaimers
The Bureau of Automotive Repair (BAR) often receives questions from automotive repair dealers (ARDs) about automotive repair warranties and disclaimers. Here are some answers to frequently asked questions.
Warranties
Are ARDs required to provide a warranty for automotive repairs?
No. The Business and Professions Code (BPC) and California Code of Regulations (CCR) do not require ARDs to provide a warranty. However, if an ARD chooses to provide a warranty, the warranty must comply with the requirements of CCR section 3376.
Additionally, BPC section 9884.7(a)(7) establishes a requirement for good and workmanlike repairs that meet industry accepted trade standards and align with the warranty provisions of Civil Code section 1791.1. It is important to note that CCR section 3375 defines the terms “guarantee” and “warranty” as having the same meaning.
What types of warranties are offered for automotive repairs?
There are a variety of guarantees or warranties for automotive repairs including:
- Lifetime warranties - cover specific parts and service for as long as the consumer owns the vehicle.
- Time or mileage warranties - cover parts or repairs for a designated period of time or a specific number of miles driven.
- Pro-rata warranties - provide coverage that decreases in value relative to the time or mileage the part or repair has been in use. Pro-rata warranties are often applied to vehicle batteries or vehicle tires. The requirements for a pro-rata warranty are specified in CCR section 3377.
Regardless of the type of warranty, per CCR section 3376, the details of the warranty must be clearly described to the consumer.
What are the requirements and best practices for providing a warranty in electronic transactions?
For electronic transactions, the ARD must provide warranty documentation along with the final invoice to the consumer as required by CCR section 3356. Providing a website link to a warranty does not meet the written warranty documentation requirements. In addition, the warranty must also comply with the provisions of CCR section 3376, which requires that parts and services covered by a warranty are itemized in detail. The recommended practice for electronic transactions is to provide the warranty document in a non-editable format, such as a PDF, and for the ARD to retain a copy in their files.
Are verbal warranties valid?
No. Verbal warranties do not meet the requirements of CCR section 3376. Additionally, a civil court may interpret a verbal guarantee as a warranty and require the ARD to comply with the terms they stated verbally.
Is the ARD required to have the customer acknowledge receipt of the warranty?
No. There are no provisions within BPC or CCR that require a consumer to complete an acknowledgement of receipt of a warranty.
How can ARDs avoid warranty complaints?
ARDs can minimize warranty complaints by:
- Performing all repairs in a good and workmanlike manner as required by BPC section 9884.7(a)(7).
- Providing the customer with a detailed written warranty as required by CCR section 3376.
- Fixing any defect in parts or services covered by a warranty in accordance with the terms of the warranty as required by CCR section 3376.
Disclaimers
What is a disclaimer?
A disclaimer is a formal statement that limits liability. An ARD might use a disclaimer if a customer declines to authorize steps necessary to complete a repair according to industry standards. In such cases, best practice dictates that the ARD should refrain from performing any of the repairs and, instead, provide a disclaimer on the invoice. The ARD must thoroughly document why each recommended repair step is essential and the extent and rationale of the disclaimer in terms the customer can understand.
How should an ARD provide a written disclaimer if they decline to work on a vehicle they consider to be unsafe?
If an ARD provides a disclaimer declining to work on a vehicle, the ARD should avoid using terms such as ‘unsafe’ or ‘dangerous’ in the disclaimer. The disclaimer should only describe the specific conditions that led to the decision to decline to work on the vehicle.
How can an ARD avoid disclaimer complaints?
Disclaimers should be used sparingly. To avoid complaints, use disclaimers only when absolutely necessary. If a disclaimer is necessary, the reason and extent of the disclaimer must be documented in detail on the final invoice.
For more information, see Laws and regulations.