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All Jurisprudence based

0 tracked cards Commercial and Taxation Laws

EuroTech Industrial Supplies sells to a manufacturing plant a 'PowerMax 50kW Industrial Air Compressor' with a 24-month warranty covering defects in materials and workmanship under normal use. The warranty includes an exclusion: 'Damage resulting from improper maintenance, unauthorized service, or modifications will void this warranty.' After 9 months, the compressor develops a latent defect in the crankcase causing leakage; the plant engages a non-authorized technician to perform maintenance due to urgent production needs. The maintenance is completed; two weeks later, the compressor fails again. EuroTech refuses coverage, citing the unauthorized service. (a) Under the warranty regime in PD 612, as amended by RA 10607, what is the controlling rule and how should the warranty be characterized? (b) What remedies are available to the buyer if a non-conformity exists during the warranty period? (c) Is EuroTech's exclusion for unauthorized service enforceable against the buyer? Why or why not?

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Under PD 612, as amended by RA 10607, the warranty regime creates a mandatory conformity warranty that keeps the seller responsible for defects in materials and workmanship; when a non-conformity exists within the warranty period, the buyer may seek repair, replacement, or a proportional refund; exclusions based on improper maintenance or unauthorized service are not automatically effective to void coverage if the defect is manufacturing-related, meaning the buyer retains the warranty rights notwithstanding such exclusions. Under RA 10607, warranties are entirely governed by general consumer-contract principles; the warranty can be disclaimed by any waiver; unauthorized maintenance clauses are always binding to void coverage. The warranty coverage is limited to defects in materials and workmanship only if the plant uses the compressor for personal use and not industrial application; unauthorized service does not affect the warranty in industrial contexts. Remedies under the warranty are limited to replacement; refunds are not available; maintenance by unauthorized technicians has no effect on coverage.

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