1

▪ A statement about the integrity of the

product and about the seller’s
commitment to correct problems should
the product or service fail.
Warranties ▪ Misleading language in guarantees has
the capacity to spark significant legal
troubles for small businesses that run
afoul, however inadvertently, of legal
guidelines.

2
 “
▪ Warranty generally means a guarantee or promise which provides
assurance by one party to the other party that specific facts or
conditions are true or will happen. This factual guarantee may be
enforced regardless of materiality which allows for a legal remedy if
that promise is not true or followed.
▪ Although a warranty is in its simplest form an element of a contract,
some warranties run with a product so that a manufacturer makes the
warranty to a consumer with which the manufacturer has no direct
contractual relationship.
3
 “
▪ A warranty may be express or implied, depending on whether the
warranty is explicitly provided (typically written) and the
jurisdiction.

4
 “
▪ Warranties may also state that a
particular fact is true at one point in time
or that the fact will continue into the
future (a "promissory" or continuing
warranty).

5
 “
▪ Warranties provided in the sale of goods (tangible products) vary according to
jurisdiction, but commonly new goods are sold with implied warranty that the
goods are as advertised. Used products, however, may be sold "as is" with no
warranties.

6
IMPLIED ▪ Unwritten promises that arise
WARRANTIES
from the nature of the transaction,
and the inherent understanding by
the buyer, rather than from the
express representations of the
seller.

7
 “
▪ The warranty of merchantability means the goods must
reasonably conform to an ordinary buyer's expectations.
For example, apples in a grocery must be ripe and fresh.
Canned goods must not be expired.
▪ The warranty of fitness for a particular purpose is
implied unless disclaimed when a buyer relies upon the
seller to select the goods to fit a specific request.
8
 “
▪ Implied warranty of fitness for a particular use is created when
▪ At the time of the sale, the seller has reason to know the uses the buyer has
for the goods and
▪ The buyer relies on the seller’s judgement in selecting the goods.
▪ This implied warranty is not created if the buyer’s knowledge of the goods is as
great as the seller or the buyer has a professional consultant or
▪ The buyer supplies specifications to the seller.

9
 “
▪ Implied warranties are often disclaimed, which is legal as long as the
disclaimers are conspicuous, such as in bold face print. Warranty
disclaimers have been held a material alteration, such that they would
not be part of the contract if the term was added in the acceptance.
Although a seller cannot disclaim an express warranty, he can disclaim
implied warranties.
▪ A contract may contain the phrase “represent and warrant”, which
means to indicate and guarantee or assert something. For example, a
disclaimer of warranties may provide as follows:
10
 “
▪ “We do not endorse, represent or warrant the accuracy or reliability of any of
the information, content, advertisements or other materials contained on,
distributed through, or linked, downloaded or accessed from our service. We do
not endorse, represent or warrant the quality of any products, information or
other materials displayed, purchased, or obtained as a result of or in connection
with the service, and we do not endorse, represent or warrant the service,
security, or practices of any of the vendors whose products or services are
included on the service. Any reliance upon any information, content,
advertisements, materials, products, services or vendors included on or found
through the service shall be at the user’s sole risk.”
11
 “
Consumers can ask the court to enforce warranties, whether they are
express, implied, written, verbal, or given in any other way.
▪ In 1992 the Consumer Act of the Philippines (RA 7394) was passed. It
covers all the consumer rights and the part about warranties are
covered in Chapter 3.

12
CONSUMER ▪ Articles under Warranties include the
ACT OF THE following:
PHILIPPINES -Implementing Agency -Professional Services
-Guaranty of Service Firms -Prohibited Acts
-Applicable Law on Warranties -Penalties
-Additional Provisions on Warranties
-Warranties in Supply of Services

13
EXPRESS Unlike implied warranties, express
WARRANTI warranties are not automatically a part of
the sales contract based on state law;
ES
rather, they are explicitly offered
warranties.
They are promises and statements, made
voluntarily by the seller or manufacturer,
about a product or service and
commitment to remedy defects and/or
malfunctions that the customer may
experience.
14
TERMS OF Article 68 of Chapter III of RA 7394 states that
EXPRESS any seller or manufacturer who gives an express
WARRANTY warranty shall:
▪ 1) set forth the terms of warranty in clear and
readily understandable language and clearly
identify himself as the warrantor;
▪ 2) identify the party to whom the warranty is
extended;

15
TERMS OF 3) state the products or parts covered;
EXPRESS 4) state what the warrantor will do in the event of
WARRANTY a defect, malfunction of failure to conform to the
written warranty and at whose expense;
5) state what the consumer must do to avail of the
rights which accrue to the warranty; and
6) stipulate the period within which, after notice of
defect, malfunction or failure to conform to the
warranty, the warrantor will perform any
obligation under the warranty.

16
FULL ▪ Article 68 differentiates full versus limited
VS warranties. Full warranty if the written warranty
meets the minimum standards for warranty while
LIMITED limited warranty if the written warranty does not
WARRANTIES meet such minimum requirements.

17
FULL For a warrantor to meet the minimum standards for
VS warranty, he shall:
1) remedy such consumer product within a reasonable
LIMITED
time and without charge in case of a defect, malfunction
WARRANTIES or failure to conform to such written warranty;
2) permit the consumer to elect whether to ask for a
refund or replacement without charge of such product or
part, as the case may be, where after reasonable number
of attempts to remedy the defect or malfunction, the
product continues to have the defect or to malfunction.

18
Warranties,
Liabilities,
Patents,
Bids &
Insurance
 - It is a statement about - Misleading language in
the integrity of the these guarantees has
product and about the the capacity to spark
Warranties
seller’s commitment to significant legal troubles
correct problems should for small businesses
the product or service that run afoul, however
fail. Product and service inadvertently, of legal
warranties have become guidelines.
standard practice in most
U.S. industries, although
opinions vary somewhat
regarding their impact on
sales.
20
 -A warranty has various meanings but generally
means a guarantee or promise which provides
assurance by one party to the other party that
specific facts or conditions are true or will
happen. This factual guarantee may be enforced
regardless of materiality which allows for a legal
remedy if that promise is not true or followed.

- Although a warranty is in its simplest form an

element of a contract, some warranties run with a
product so that a manufacturer makes the
warranty to a consumer with which the
manufacturer has no direct contractual
relationship.
21
A warranty may be Warranties may also
express or implied, state that a particular
depending on whether fact is true at one point
the warranty is in time or that the fact
explicitly provided will continue into the
(typically written) future (a "promissory"
and the jurisdiction. or continuing
warranty).

22
▪ - Warranties provided in
the sale of goods
(tangible products) vary
according to jurisdiction,
but commonly new
goods are sold with
implied warranty that the
goods are as advertised.
Used products, however,
may be sold "as is" with
no warranties.

23
Implied
Warranties

24
 “
Unwritten promises that arise
from the nature of the
transaction, and the inherent
understanding by the buyer,
rather than from the express
representations of the seller.
25
▪ The warranty of merchantability is implied
unless expressly disclaimed by name, or the
sale is identified with the phrase "as is" or
"with all faults." To be "merchantable", the
goods must reasonably conform to an
ordinary buyer's expectations.
▪ The warranty of fitness for a particular
purpose is implied unless disclaimed when a
buyer relies upon the seller to select the
goods to fit a specific request.
26
 ▪ At the time of the sale, the seller has reason to know the
“implied uses the buyer has for the goods and

warranty ▪ The buyer replies on the seller’s judgement in selecting

the goods
of fitness ▪ This implied warranty is not created if the buyer’s
for a knowledge of the goods is as great as the seller or the
buyer has a professional consultant,
particular ▪ The buyer supplies specifications to the seller Implied
use”. This warranties are often disclaimed, which is legal as long as
the disclaimers are conspicuous, such as in bold face print.
warranty Warranty disclaimers have been held a material alteration,
is created such that they would not be part of the contract if the term
was added in the acceptance. Although a seller cannot
when disclaim an express warranty, he can disclaim implied
warranties.
27
▪ A contract may contain the phrase “represent and warrant”, which
means to indicate and guarantee or assert something. For
example, a disclaimer of warranties may provide as follows:
▪ “We do not endorse, represent or warrant the accuracy or reliability
of any of the information, content, advertisements or other
materials contained on, distributed through, or linked, downloaded
or accessed from our service. We do not endorse, represent or
warrant the quality of any products, information or other materials
displayed, purchased, or obtained as a result of or in connection
with the service, and we do not endorse, represent or warrant the
service, security, or practices of any of the vendors whose
products or services are included on the service. Any reliance
upon any information, content, advertisements, materials,
products, services or vendors included on or found through the
service shall be at the user’s sole risk.”

28
▪ Consumers can ask the court to enforce
warranties, whether they are express, implied,
written, verbal, or given in any other way.
Federal, state, and local government entities
establish the regulatory basis upon which
warranties are judged. The Federal Trade
Commission (FTC) is the ultimate arbiter of
warranty law in the United States. The FTC’s
primary tool in the monitoring product and
service guarantees in the Magnuson-Moss
Consumer Warranty Act.

29

Unlike implied warranties, express
warranties are not automatically a
part of the sales contract based on
state law; rather, they are
explicitly offered warranties.
They are promises and statements,
made voluntarily by the seller or
manufacturer, about a product or
service and commitment to remedy
defects and/or malfunctions that
the customer may experience.
“Express Warranties
Express warranties can take a
variety of forms, ranging from
advertising claims to formal
certificates. An express warranty can
be made either orally or in writing.
While oral warranties are important,
only written warranties on consumer
products are covered by the
Magnuson-Moss Warranty Act.
30
 The Federal Trade Commission
ELEMENTS requires that written warranties
OF bestowed in connection with the
WARRANTY sale of a product or service
explicitly detail the following
information,
▪ Who is covered by the warranty

31
 ▪ Description of the products, parts, properties, or
characteristics covered by or excluded from the warranty
▪ Steps for customer in the event that warranty coverage
LENGTH comes into play
Warrantor’s response when confronted with the
OF ▪
product/service malfunctions, defects, or failures
WARRANTY ▪ Any exclusions of or limitations on relief such as
incidental or consequential damages
▪ Statement that indicates that some states do not allow
such exclusions or limitations
▪ Statement of consumer legal rights
▪ Any limitations on the length of implied warranties, if
possible
32
 ▪ The Magnuson-Moss Act does not
require businesses to provide
FULL warranties to customers. Indeed, some
AND business owners decide that written
LIMITED warranties are not even necessary to
WARRANTIES enjoy success in their chosen field of
endeavor. But other manufacturers
and retailers are convinced that
warranties help sell their products,
pointing to the popularity of service
contracts and the like.
33
Businesses that choose to
provide written warranties
may choose from two types:
full and limited. FTC
regulations concerning full
warranties are considerably
more stringent than those
that apply to limited
warranties. According to
Magnuson-Moss Act, “fully
guaranteed” products or
services must meet the
following five criteria:

five
▪
▪ Customer receives full money
back or replacement or repair
criteria: of any defective part of product
in the event of a complaint
▪ Prompt and free repairs
▪ If repairs are not fully
satisfactory to the buyer, a
prompt refund is available
▪ Customer has no responsibility
beyond reporting the defect to
the company
▪ Acknowledgement of all
implied warranties
Limited warranties, which must
be prominently labeled as such,
limit the liability of the
manufacturer or service
provider. A limited warranty
may offer to replace a defective
parts free, but only do so for a
limited length of time, or
require that the consumer ship
the product to a manufacturer-
approved service centre. The
distinction between full and
limited warranties and the
obligations of manufacturers to
honor them vary from state to
state, so it is up to the
consumer to carefully read the
literature and understand what
is covered before the purchase.
35
DISCLAIMER
36
▪ A warranty disclaimer is a statement or written document
that informs a buyer that the seller is not bound by any
warranty guarantees or promises regarding the product.
This can be issued after a warranty has already been
released in order to retract the previous warranty, or it can
be issued before a warranty gets included with the
product.

▪ Either way, the disclaimer serves to release the seller or

producer from legal liability for product failures or defects.
Of course, the product must still comply with federal and
state standards regarding safety and product liability.

37
 ▪ Warranty disclaimers can ▪ Alternatively, the seller can
be issued as a written also make an oral statement
How Are statement that is included at the time of the sale

Warranty with the product (either on

the packaging or in a
regarding the warranty
rights, which would serve

Disclaimers brochure or manual). This is

the preferred method for
Issued? disclaiming an express
warranty (one that is
specifically written with the
product).
as a disclaimer. This is often
an acceptable form of
disclaimer for implied
warranties (ones that are
inferred from the product’s
nature or from state laws).

Lastly, a disclaimer can also be issued as part of

a contract agreement. For instance, a buyer may
wish to purchase products in bulk from a
wholesale supplier. As part of the sales contract,
the parties may agree to sign a warranty
disclaimer for the sale. 38
 In some cases, a dispute can arise over a warranty

Can I disclaimer. For instance, a buyer may still be claiming that

they’re entitled to a refund or exchange even after the seller
Challenge a issued a warranty disclaimer. In most cases, a written

Warranty statement will hold much weight in a court of law.

Disclaimer?
This is why it’s often preferable that a
warranty disclaimer be put in writing, so
In cases where a warranty
that there is a record of the parties’
disclaimer can be disproved, it
agreement at the time of the transaction.
may lead to a damages award
Likewise, a disclaimer that is contained in a
for the plaintiff, depending on
contract may be more difficult to challenge,
the exact value of the
since the parties agreed to the terms at the
transaction.
time of contract signing.
39
LIABILITIES
 “
▪ Liabilities are legal obligations or debt owed
to another person or company. In other words,
liabilities are future sacrifices of economic
benefits that an entity is required to make to
other entities as a result of past events or past
transactions.

41
There
Current Non-current Contingent
are
▪

liabilities liabilities liabilities are

three (short-term ▪ (long-term liabilities that
liabilities) are may or may not
types liabilities)
liabilities that arise
of are liabilities are due after a depending on a
certain event.
that are due year or more.
liabilities: and payable
within one
year

42
 Also known as short-term liabilities, are
Current
▪
debts or obligations that need to be repaid
liabilities within a year. Current liabilities should be
closely watched by management to make
sure that the company possesses enough
liquidity from current assets to guarantee
that the debts or obligations can be repaid.
Example:
▪ Interest payable
▪ Income taxes payable
▪ Short-term loans
43
 Also known as long-term liabilities, are
Non- ▪
debts or obligations that are due in over a
current year’s time. Long-term liabilities are an
liabilities important source of a company’s long-term
financing. Companies take on long-term
debt to acquire immediate capital to fund
the purchase of capital assets or invest in
new capital projects.
Example:
Long-term notes payable
Capital lease
44
 ▪ Contingent liabilities are liabilities that may
Contingent occur depending on the outcome of a future
event. Therefore, contingent liabilities are
liabilities potential liabilities. For example, when a
company is facing a lawsuit of 100,000, the
company would face a liability if the lawsuit
proves successful. However, if the lawsuit is not
successful, the company would not face a
liability. In accounting standards, a contingent
liability is only recorded if the liability is probable
and the amount can be reasonably estimated.
Example :
▪ Product Warranty
▪ Lawsuits 45
Debt ▪ Debt is used by
many corporation,
▪ Debt arrangement
gives the borrowing
-Amount of company and party permission to
individuals as a borrow money
money
method of making under the condition
borrowed by large purchases that that it is to be paid
one party for they could not back at a later date,
anther. afford under normal usually with
circumstances. interest.

46
PATENTS
A Patent is a
grant issued
by the government
through the
Intellectual Property
Office of the
Philippines
(IP Philippines).

47
It is an exclusive right granted for a product, process or
an improvement of a product or process which is new,
inventive and useful. This exclusive right gives the
inventor the right to exclude others from making, using,
or selling the product of his invention during the life of
the patent..

48
 A patent has a term of protection of twenty (20) years
providing an inventor significant commercial gain. In
return, the patent owner must share the full description
of the invention. This information is made available to
the public in the form of the Intellectual Property
Official Gazette and can be utilized as basis for future
research and will in turn promote innovation and
development.
49
 Patentable inventions offer a technical solution to a
problem in any field of human activity. However,
theories, mathematical methods, methods of treatment
and artistic creations are Non-Patentable inventions.

50
 “ BIDS
Bidding is an offer (often competitive) to set a
price by an individual or business for a product or
service or a demand that something be
done. Bidding is used to determine the cost or
value of something. Bidding can be performed by
a "buyer" or "supplier" of a product or service
based on the context of the situation.
51
Bidding Procedures of ▪ 1. Introduction

and ▪ 2. Organization
Department of 3. General Procedures
Awards ▪

Procedures Public Works ▪ 4. Bidding Process

5. Contract Award and
and Highways
▪
Implementation

(DPWH) ▪ 6. Procurement by
Electronic Means
▪ 7. Effectivity

52
 ▪ In line with the government's
Introduction efforts to uphold transparency
and accountability, and achieve
equity, effectiveness, efficiency
and economy in its operations,
the herein Implementing Rules
and Regulations (IRR) are
prescribed to standardize and
provide uniformity to the
existing rules and regulations
governing the procurement of
goods using government funds.
▪ In the context of free enterprise, the aims
and purposes of the government's
procurement process are as follows: a. to
purchase goods of acceptable quality at
fair and reasonable prices from qualified
and capable
suppliers/manufacturers/distributors, with
on time delivery and satisfactory
compliance of all contract conditions; b. to
assure terms and fair and equitable
treatment of suppliers/
manufacturers/distributors including
arrangements for prompt payments; c. to
adopt procurement procedures that utilize
information technology; and d. to maintain
records and collect data for refinement of
procurement policies and procedures
based on experiences gained.
53
Organization ▪ Bids and Awards Committee Each government agency
shall create a Bids and Awards Committee (BAC) in its
head office and/or in its implementing office which shall be
responsible for the determination of eligibility, conduct of
bidding, evaluation of bids, post qualification of the lowest
calculated bid and recommending award of contracts. The
record keeping, planning and management of the
procurement process shall be designated to the
procurement unit or the administrative unit, as appropriate,
of the office/agency/corporation concerned. The prescribed
composition of the BAC as well as relevant provisions
pertaining thereto and its responsibilities.

54
 Certificate of Availability of Funds
General ▪

Procedures Contracts for the procurement of goods shall

not be approved unless a Certificate of
Availability of Funds (CAF) has been issued by
the proper accounting official of the concerned
agency certifying that funds are available and
have been duly appropriated for the purpose
to cover the expenditures for the current fiscal
year.

55
 For Procurement Financed by the Government the
Who May
▪
following manufacturers/suppliers/distributors,
Be Eligible whether 100% local - or at most 40% foreign-owned,
may participate in the bidding for the supply of goods
to Bid to be bid out by the Government:
a. Duly licensed Individuals/Sole proprietorship;
b. Partnerships or corporations;
c. Manufacturers/suppliers/distributors forming
themselves into a joint venture, i.e., a group of two or
more manufacturers/suppliers/distributors that intend
to be jointly and severally liable for a particular
contract;
d. Cooperatives duly registered with the Cooperatives
Development Authority (CDA).

56
 ▪ To ensure fairest competition,
the Bid/Tender Documents
Preparation shall describe clearly and
of precisely the nature of the
Bid/Tender goods for which bids are to be
invited, the technical
Documents standards/requirements
which must be met, the place
and period of delivery or
installation, the warranty and
maintenance requirements,
the method and criteria to be
employed in the evaluation
and comparison of bids, and
other pertinent terms.
▪ DPWH Bids Awards
Committee BAC
Composition 028.
Department of Public
Works and Highways.
▪ To determine the lowest
calculated responsive bid,
the BAC shall, within
thirty (30) days from the
determination of the
lowest calculated bid,
conduct a post
qualification of the bidder
with the lowest calculated
bid.
57
 Approval of Contracts
▪ Supply contracts should ▪ Issuance of Notice to
Contract be approved or
disapproved by the Head ▪ The concerned agency
Award and of Agency concerned or
his duly authorized
Implementation representative in
accordance with existing
laws, rules and
regulations within fifteen
(15) calendar days from
the date the successful
bidder has executed the
contract with the
concerned agency and
submitted all
documentary
requirements to perfect
the contract.
Proceed
shall issue the Notice to
Proceed (NTP) to the
successful bidder not later
than fifteen (15) calendar
days from the date of
contract approval. All
notices called for by the
terms of the contract shall
be effective only at the
time of receipt thereof by
the supplier.
58
Procurement ▪ Within two (2) years from the issuance of these
by Electronic IRR, government offices/agencies/corporations
Means shall have adopted electronic communications
and digital information processing technology
systems in the conduct of procurement
procedures. Electronic procurement systems of
government offices/agencies/corporations shall
ensure the integrity, security and confidentiality
of documents submitted through such systems

59
 These Implementing Rules
and Regulations (IRR) as
well as their amendments
Effectivity shall take effect fifteen (15)
days after the date of
publication of the same in the
official gazette or in a
newspaper of general
circulation. The IRR and their
amendments shall have
prospective application.

60
 Insurance How Insurance Works
There is a multitude of different types
Insurance is a
of insurance policies available, and
▪

means of protection
virtually any individual or business can
from financial loss.
find an insurance company willing to
It is a form of risk insure them, for a price. The most
management common types of personal insurance
primarily used policies are Philhealth, SSS, and Pag-
to hedge against the ibig. Most individuals in the Philippines
risk of a contingent, have at least one of these types of
uncertain loss. insurance.

61
 Types of insurance
• Auto insurance Other types of
• Gap insurance insurance
• Health insurance
• Income protection insurance • Insurance financing
• Casualty insurance
• Life insurance
vehicles
• Burial insurance • Closed community
• Property and government self-
• Liability insurance
• Credit
 ▪ Auto insurance is a
Types contract between you
and the
▪ Gap insurance is an
of
insurance company
that protects you
against financial loss
insurance
in the event of an
accident or theft. In
exchange for your
paying a premium,
the insurance
company agrees to
pay your losses as
outlined in your policy
optional insurance
coverage for newer
cars that can be ▪ Health insurance is a
type of insurance
added to your
collision coverage that pays
insurance policy. It for medical and surgical
may pay the expenses incurred by
difference between the insured. Health
the balance of a lease insurance can reimburse
or loan due on a the insured for expenses
vehicle and what incurred from illness or
your insurance comp injury, or pay the care
any pays if the car is provider directly.
considered a covered
total loss.
63
 ▪ Income Protection
Insurance (IPI) is an
Types
insurance policy,
available principally in
Australia, Ireland, New
of Zealand, South Africa,
and the United
▪ Casualty insurance
insurance Kingdom, paying
benefits to
policyholders who are
incapacitated and
hence unable to work
due
to illness or accident.
IPI policies were
formerly
called Permanent
Health
Insurance (PHI).
▪ Life insurance is a
contract between
an insurer and a
policyholder in
which the insurer
guarantees
is a broad category
of coverage against
payment of a death
benefit to named
loss of property, beneficiaries upon
the death of
damage or other
the insured. The
liabilities.
insurance company
promises a death
benefit in
consideration of
the payment of
premium by
the insured
64
 Liability
▪ Burial insurance ▪

insurance provides
is a type of life
Types
the insured party with
insurance used protection against claims
resulting from injuries
of to pay for funeral
services and
and damage to people
and/or property. Liability
insurance merchandise
costs after a
▪ Property
Insurance that
insurance policies cover
both legal costs and any
protects the payouts for which
death.
the insured party would
physical property
be responsible if found
and equipment
legally liable.
of a business
against loss from
theft, fire or
others.

65
Types ▪ Credit insurance is a type
of insurance policy purchased by a
of borrower that pays off one or more
insurance existing debts in the event of a
death, disability, or in rare cases,
unemployment

66
 ▪ Self-insurance is a
Vehicle situation in which a
Other
▪

insurance would person or business

types of typically cover both does not take out any
the property risk third-party insurance,
insurance (theft or damage to but rather a business
the vehicle) and the that is liable for some
liability risk (legal risk, such as health
claims arising from costs, chooses to bear
an accident). the risk itself rather
than take
out insurance through
an insurance
company.
67
Thank you
very much
for your time
and God Bless.

68