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Magnuson-Moss Warranty Act: A Purposeful Term Paper

… The Act enables warrantors to include a provision also stating that a consumer agrees they will attempt to resolve a dispute through informal dispute resolution prior to going to court over a matter (Grimes, 2002). One stipulation however, of this allowance is that the dispute resolution mechanism must meet requirements outlined by the FTC. The FTC rule regulating this process has several stipulations, outlined in the Dispute Resolution Rule, which include that the warrantor/dispute resolution party be the following: (1) Adequately funded and staffed to resolve disputes quickly, (2) be available free of charge to consumers, (3) be able to settle disputes independently, (4) gather and investigate quickly and inform parties (Grimes, 2002). There are additional related requirements, all insuring the integrity of the system.…. [read more]

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