Expert: Ralph Salier - 4/26/2004

Question
Dear Ralph
I would like to know the exact difference between Guaranty and Warranty,as used in commerce and trade.
Many thanks for your help.
Jesse

Answer
The fundamental differences are rather large.  First of all a Guaranty is generally a short term idea.  " We guaranty that you will  be satisfied or your money back". while a Warranty is longer in "term" and is generally based on the quality of the product and its longevity rather then "simple satisfaction".  Thus cars have "limited power train warranties of 60,000 miles or 5 years which ever comes first."  This means that if you do every thing the car company tells you to do and it in the time frame (or milage) then they will repair a quality defect at no cost or limited cost to the consumer.   

There is another type of guaranty in which the financial aspect of the transaction rather then the quality is at stake.  In this type of guaranty, the buyer is given (much as in the first example) a promise of getting his/her money back in the event of a failure in satisfaction over a longer term.  Thus tires have limited tread life guaranties in which you can get some money back if the tread of the tire does not last 50K miles provided that you maintained the tires and did not despoil them by your driving habits.  Or as in the case of Sears's guaranty of their "Craftsmen" hand tools.  If one should break, they will replace it at no charge.  This is not a warranty because the tool's failure could be caused by anything, including a fault in its quality.

I hope that the distinction is clear.  If not, please ask for further clarification.