I purchased an AC system for my house with a 5 year warranty on parts and labor less than 3 years ago. The person who ran the company that sold the AC to me transferred their phone numbers and contact info to their son's AC company and then declared bankruptcy. My AC went out and the second company (owned by the son of the first) said the parts are still covered in warranty but the labor was not and they would not honor the labor warranty. Is this legal?
2 Answers from Attorneys
Was the warranty issued by the company that went bankrupt or did he sell you a third-party warranty? If it was issued by a third-party, you should contact them.
Also, you should contact the manufacturer about the warranty. I vaguely recall that some manufacturers of AC units give a 5 and/or 10 year warranty on the unit. I would not want to have the son of the bankrupt company do any work. The manufacturer should have a list of authorized installers in your area.
Call around because there is a wide range of pricing on AC units. My personal experience in purchasing AC units is that the first company will give you a high quote if they think you have not contacted other companies for a bid and won't bother to get more bids. I received bids of $8,000, $6,000, $5,000 and $3500 for the identical unit. I found that the higher priced bids involved a lot of high pressure, scare tactic sales pitches. Just make sure you are comparing the exact same unit, SEER rating, and ton rating to make your decision. Also check to make sure the company is a licensed contractor. I also found it helpful to tell the contractor that I planned on getting at least three bids.
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