BE CAREFUL OF LIMITED WARRANTIES
At one time or another, every business will buy products or services. Whether the purchase is for a new roof or wallpaper or a service agreement with an alarm company, many of the sellers of these products and services will try to limit their exposure in the event things do not work like they should. These sellers limit their exposure in warranties which are part of the contract between your business and the seller. You should carefully review these warranties to determine whether or not you are comfortable with the risk you are being asked to assume. For example, the wallpaper company may agree that if the wallpaper falls off the wall, it will pay you the price paid for the wallpaper, but you will be responsible for the cost of re-hanging the new wallpaper. By contrast, the roofing contractor may warrant that the roof is sound and does not leak, but will not pay to replace the roof in the event that the roof does not perform as it should. Anytime you see the word “warranty” in a document, you may have the feeling that you are getting some protection with the product or service that you are purchasing. However, the fine print in the warranty may actually warrant nothing at all.