Give an example of company limited by guarantee?

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1012338

2026-07-28 21:15

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Actually, almost every guaranty is limited in some way. Virtually nobody gives an unlimited guaranty; there are always conditions of some kind, or other limitations. By the way, the Word warranty and guaranty or guarantee are the same thing.

Even a "lifetime" warranty is considered limited to the expected "useful life" of a product, not your lifetime as owner. So for example I recently had the electronics of wall oven go out -- the warranty in the owner manual said the electronics had a "lifetime warranty". But the manufacturer knew from the model and serial number it was 13 years old. They said the useful life of the particular oven was 10 years, so the warranty was no longer good.

Almost every warranty excludes "consequential damage" too. So if the oven had caught on fire because the elecrtronics were defective and burned down my house, the manufacturer would at most cover the oven, but because "consequential damages are excluded" language was elsewhere in the warranty in the owner's manual, that let them off the hook for the fire. In this situation, the assumption is that I'll have fire insurance on the house, and if the insurance company pays me off, the insurance company might be able to sue the oven manufacturer, but it would have to prove the defect caused the fire, and then the manufacturer's insurance company might have to cover that!!! Lovely.

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