Significance of the Commercial Guarantee
A commercial guarantee is different from legal liability for defects. The provision of a commercial guarantee is voluntary, but, if it is provided, the guarantee must be an added benefit to the consumer, i.e. something that goes beyond the requirements of the law. There is a defect in the goods if the seller (or other guarantor such as manufacturer), by giving a commercial guarantee or other similar undertaking, has assumed the liability for the durability of the goods for a specified period, if the goods deteriorate during the guarantee period within the meaning of the undertaking. Because the Finnish Consumer Protection Act’s provisions on the liability for defects are mandatory, the guarantee undertakings do not limit the liability for the defects set in the law. If the guarantee does not provide more favorable terms and conditions for the consumer, the consequences of defects are determined by the law. After the guarantee period has expired the seller’s liability for the defects is determined in accordance with the law.
The guarantor is not liable for the defect as set in the guarantee undertaking if it may be likely that the deterioration was due to an accident, inappropriate handling of the goods or other circumstances attributable to the buyer. If the guarantee has been granted by someone else than the seller, either at the previous level of the supply chain or on behalf of the seller, the goods are considered defective on the same basis as stated above. However, the seller is not liable for the guarantee given by a previous level of the supply chain if the seller shows that it has clearly notified the buyer of this before the conclusion of the sale.
A clear and understandable certificate of the guarantee must be drafted and provided to the buyer at latest at the time of delivery of the goods, in person, in writing or electronically in a way that the buyer can save and replicate it in unchanged form (guarantee certificate).
The following must be included in the guarantee certificate:
Name and address of the guarantor;
The goods the guarantee applies to;
Terms and conditions of the guarantee;
Procedure the buyer must abide by to utilize the guarantee;
A clear notification that the consumer has the rights set in law and that the guarantee does not restrict these rights.
The buyer has the right to resort to the guarantee even if it does not fulfill these formal requirements.
If the terms of the guarantee certificate differ from the terms presented in advertising to the detriment of the buyer´s interests, the guarantee applies according to the terms presented in the advertising, unless the advertising has been rectified in time and in a similar or comparable manner to the way the guarantee terms have been advertised.