Click on the links below to learn more

There are four types of Warranties:

• Voluntary Warranties - these are given by manufacturers, resellers or service providers who choose to stand behind their goods or services.  If a manufacturer, retailer or service provider chooses to give a voluntary warranty or guarantee, then the law requires that person or business honour it.
• Extended Warranties - these usually give a purchaser similar benefits to a manufacturers warranty, but over a longer period.  These warranties may apply only after the manufacturer's express warranty has run out.
• Specified Warranties - these are imposed by State/Territory laws for particular products, such as used cars.
• Implied Warranties - these are imposed by the Competition and Consumer Act and some State fair trading laws.  With some exceptions relating to purchases by businesses, they cannot be excluded or modified by manufacturers, resellers or service providers, and importantly they apply in addition to any voluntary or extended warranty.  The  Competition and Consumer Act provides more information on warranties.

Personal Guarantee

Where you operate a business other than as a sole trader or partnership, you may at some stage be asked to enter into a personal guarantee.  This will be especially so where you operate you business under the umbrella of a company.  A company is a separate legal entity and the directors of a company have only a very limited liability for the debts or other obligations of a company.  A personal guarantee is a way of making the directors personally liable for the obligations of the company or other legal business.  It is advisable to get legal advice before entering into a personal guarantee^[1].

^{[1] NSW Small Business}