From:
[email protected] (Doug Pfrang)
Subject: Re: Q: Contract Review in a Catch 22 Situation /Scalies/Pfrang
>From: Charley Scalies <
[email protected]>
>Subject: Q: Contract Review in a Catch 22 Situation /Scalies
>
>Here is a new thread for discusssion. It is based on an actual case.
>
>As a matter of standard practice, an ISO9001 registered firm takes
>orders by telephone. The seller's sales representative recommends - and
>the buyer consents to - purchase of an extended on-site repair warranty.
>When the product arrives, it's defective. The replacement product is also
>defective. In attempting to return the defective product for a full refund, the
>customer is then informed of the terms of the seller's warranty which
>excludes seller's liability for return shipping costs. The customer is
>now in the position of having to pay freight costs for the "pleasure" of
>having an unusable product. There was no mention of such warranty
>provisions at the time the phone order was placed.
>1. Under the scope and intent of the standard, particularly 4.3, is the
>seller under a positive obligation to reveal the material terms of that
>warranty at the time of the sale?
>2. Is the customer entitled to issue a Corrective Action based on
>nonconformance with 4.3?
Charley,
Interesting questions, however, I don't see a Catch 22.
First, an editorial comment. I don't entirely agree with the statement that the customer "is now in the position of having to pay freight costs for the 'pleasure' of having an unusable product." Although your observation is technically correct, there are other, arguably more likely, situations in which it makes sense for the buyer to pay return freight. For example, from the seller's perspective, the fault for the so-called "defective" product might lie with the freight carrier or even with the buyer himself. In the former case, it is reasonable for the buyer to pay the return freight, because the buyer should have filed a damage claim with the carrier. In the latter case, it is also reasonable for the buyer to pay the return freight, because the buyer broke the product. Another situation is when the buyer buys the product, uses it for a while, and then sends it back for a refund even though it has not malfunctioned. In this case, it is again reasonable for the buyer to pay the return freight because the seller has already paid outbound freight costs, plus gets back a used product in place of the new product that was sent out. If we assume that most situations of returned goods are one of these that I've described, and not the repeated manufacturing defects that you described, then it will be reasonable, in most situations, for the buyer to pay the return freight.
Now, as regards your first question, the buyer and seller are both responsible for agreeing on warranty terms; the burden is not solely on the seller. Your question seems to assume that the seller withheld that information, but it is equally the burden on the buyer to inquire. If the buyer does not read or ask about the terms of the seller's "on-site repair warranty," then the buyer, not the seller, is at fault.
As regards your second question, I don't know of any company that allows customers to "issue a corrective action [request]" for any reason; the responsibility for issuing corrective action requests lies with the seller. The customer might complain about not being aware of the return goods policy, which might cause the seller to issue a corrective action to make this information more explicit in the purchase documents or phone order-taking process, but the seller might decide the customer is at fault for not asking about the warranty terms when the customer placed the order.
ISO-9000 is a quality system standard for sellers, not a license for customers to be stupid.
-- Doug Pfrang