Legal Question in Consumer Law in Georgia

Home warranty interpretation

I have a home warranty that I purchased for $500. This warranty is widely advertised and says that if a covered item cannot be repaired it will be replaced, with qualifiers and conditions. The warranty does not cover ''diminished capacity'', and this has been interpreted to mean if an air conditioner only cools 5 degrees cooler than the outside air, it is still functioning. However, when questioned, the warranty company said that if a hot water heater only heated water 5 degrees cooler than it was originally, that would be a covered item. Obviously the largest print indicates ''repair or replace'' and the smallest print indicates ''diminished capacity not covered''. My question has to do with the reasonable expectation of a purchaser of the warranty as well as the apparently inconsistent interpretation diminished capacity clause.

Is it not reasonable for a consumer to expect an air conditioner to function as specified by the manufacturer and generally accepted standards as published, i.e. 16 - 22 degree cooling at ninety degrees or a hot water heater to heat water to a reasonable comfort level of 120 degrees if these are the published specs? Is it fair to interpret the diminished capacity clause in different manners?


Asked on 7/02/05, 5:22 am

1 Answer from Attorneys
Glenn M. Lyon, Esq. MacGREGOR LYON, LLC, Business Attorneys

Re: Home warranty interpretation

I would need to review the warranty to give you a complete answer. If a word or phrase is not defined in a contract, the everyday use/dictionary definition or, if it is an industry term, the normal usage in the industry would apply.

If you would like to discuss any issues further, please feel free to contact my office. My contact information is below. Thank you.

The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.

Glenn M. Lyon, Esq

MacGregor Lyon, LLC

Promenade II

1230 Peachtree Street NE

Suite 1900

Atlanta Georgia 30309

Phone 404.942.3545

Fax 404.795.0993

[email protected]

www.macgregorlyon.com

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Answered on 7/05/05, 5:06 am


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