Enacted in 1975 by the Congress is the Magnuson-Moss Warranty Act. One of its goals is to encourage businesspeople to write their warranties in a “simple and readily understood” language.

It is important to have a well-written warranty as it functions more effectively as a legal instrument defining the rights and obligations of your consumers and company. It is also an effective selling tool as it creates confidence in your product and lessens hassle on the customers as it tells what steps to take if ever any problem arises. This can aid in solving problems efficiently and in helping lessen consumer complaints.