Legal and Economic Analysis of Warranty from Automobile Consumer Rights Perspective

Document Type : Original Article

Authors

1 PhD Candidate, Faculty of Law, Theology & Political Scieneces, Islamic Azad University: Kish International Branch, Kish, Iran

2 Assistant Professor, Faculty of Law, Political & Economic Sciences, Islamic Azad University: South Tehran Branch, Tehran, Iran Corresponding Author Email: m_sanee@azad.ac.ir

Abstract

The automotive industry is one of the most important drivers of economic growth in the 20th century; it has deep connections with other industries and entails positive effects on economic growth and consumer welfare. Competition in the supply of goods and services has been increased in the past decades, but the role of car's guarantee and safety is very important both economically and legally. Guarantee is presented in the form of a condition included in the contract or an independent contract; but in essence, it is similar to insurance and reward contracts. Of course, there are differences and ambiguities in this area that will be answered. Therefore, it is essential to understand the legal nature and economic efficiency of the guarantee. This article examines the nature of the guarantee and its affinity with contracts such as insurance and reward through a descriptive and analytical method, and examines its economic efficiency from cost-benefit and reduction of transaction costs perspective and since the benefit of goods and services is somehow directly related to the rights of citizens and public welfare, the government is obliged to organize and protect consumers rights. Accordingly, the Automobile Consumer Rights Protection Law has interpreted the ambiguities in the supplier's obligations in favor of the consumer. Even if there is a loss, the supplier has civil liability based on jurisprudence and legal rules and will be required to compensate the material and moral damages suffered and has a protective approach towards the consumer

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Main Subjects

References

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    Thesis

    1. Naderi, Fereshteh, “The Nature of Warranty and Its Effects and Rulings from the Perspective of Jurisprudence and Law”, Shahid Ashrafi Isfahani University, 2018. (in Persian)

     

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History

  • Receive Date: 05 September 2022
  • Revise Date: 15 July 2023
  • Accept Date: 26 August 2023

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