Impact of the Magnuson-Moss Warranty Act on the readability of warranties

Abstract

Scope and Method of Study: The principle objective of this research was the investigation of the impact of the Magnuson-Moss Warranty Act on the improved readability of warranties. The warranties were compared with instruction manuals and sample advertisement copy to discern the level of readability that the manufacturers can attain. Data were collected from a PL/I program, REDLEV, that was written to calculate the Flesch and Fog Readability Indexes. Average comparisons and paired-difference tests were made for pre- and post-Warranty Act warranties, and for warranties and instruction manuals and advertisement copy to determine if the readability of the warranties had improved.

Findings and Conclusions: One purpose of the Warranty Act required that action be taken in changing the language used in warranties to "simple and readily understandable." The results indicate there has been some improvement in readability. Advertisement copy and warranties have similar reading levels, while instruction manuals are easier to read and show a level of readability that business' can attain. The impact of the Magnuson-Moss Warranty Act on the readability of warranties was significant in a relative sense, but the reading levels of the warranties are still difficult.