Legal Definitions - deceptive warranty

Definition: A warranty that contains false or fraudulent representations or promises.

Example: A car dealership advertises a used car with a warranty that covers all repairs for the first year of ownership. However, the dealership fails to disclose that the warranty only covers certain parts and services, and the buyer ends up paying for repairs that they thought were covered.

Explanation: In this example, the dealership's warranty is deceptive because it contains false representations about the extent of coverage. The buyer relied on the warranty when making the purchase, but was misled about what was actually covered. This type of warranty is illegal and can result in legal action against the seller.