Why A Business Needs To Have A Guarantee
Operating a business is a complex task not least of which is attracting customers. One of the easiest ways to do that is to offer a guarantee but this can come at a significant cost if you do not fully understand your obligations. A major issue that people will have come up is the fact they can have customer complaints over time and this can easily lead to them having to refund the money to the customer or even worse face the customer in court because of the way the company handled the complaint. To avoid this situation it is important for any business to know why they need to have a guarantee to support their products and services. The problems come when consumers try enforcing the guarantee but the supplier refuses to stand by that agreement. Sometimes they will have reasonable grounds for denying the guarantee but this can get expensive legally.
With this guarantee, and the customer being fully aware of it, it will afford both the business and the customer some protection. When the customers are aware of the agreement and sign off on it, they know the process of complaints and even how long complaints can take to resolve. This in turn is going to help the business save itself from the headache of customers demanding a refund or even worse customers wanting to get the item for free and still get a refund.
The guarantee will outline what exactly is expected of the selling company. For example, if a company is selling windows and the installation of the windows, they need to make sure they have it outlined exactly what they are going to do. For example, they will have the installation process, new windows, glass, and other type of work. Anything that is not included in the agreement does not have to be completed, but can be added on at a later time and date if the customer wants to have the service added on. This does not negate the consumer their rights but it is important that the offer is clearly stated at the time of purchase so that the consumer does not try enforcing a guarantee which the supplier did not intend to offer. This will save time and money for all concerned.
A guarantee needs to be correctly drafted so that all sides understand their rights and obligations. The Consumer Guarantees Act has clear guidelines about what is covered and suppliers’ responsibilities. However a lawyer can draft the written guarantee for you so that you are not over-promising but also not falling foul of the law.
As many people have found out, it is important when they are selling services or other items to have people sign a guarantee between the company and the customer. By having these agreements signed, it will be easy for people to get the work done correctly and to their expectation. It will also help the supplier win the customer’s the business but at the same time set the standard for the required quality of service to be delivered. It will help the customer because they will know exactly what is going to be done, but help the business because it lets the customer know what to expect in regards to the work that is completed.
The problems arise when these simple steps are ignored and then people need to hire a lawyer in Auckland for solving disputes about enforcing a guarantee. If you face this problem, you might want to talk to McVeagh Fleming who have offices in the Auckland CBD and also in Albany on the North Shore.