What guarantee - legal or commercial?

First of all I must stress that this case has been resolved. However, it is well worth writing this article to clarify the difference between a legal guarantee and a commercial guarantee. Unfortunately it seems that many traders and consumers do not know the difference.

Mario Caruana wrote to Peter Paul Bonnici (managing director, GDL Ltd) to complain about a couple of beach beds he bought from them. After having used the beds, as he was packing them, a piece fell off the bottom. On closer inspection he established that all the reinforcing bars got bent.

Subsequently Mr Caruana wrote that, when he went over to GDL Ltd to complain, Mr Bonnici sent one of his employees to inform him that "the beds do not carry a guarantee". In response Mr Caruana wrote: "Although you claim that there are no guarantees on the goods bought, you might be ignorant of the fact that I am legally protected by a commercial guarantee."

Mr Bonnici replied: "Yes, we are aware that consumers are protected by a commercial guarantee; however; please note that so are we protected by law to take action against anyone who defames our reputation."

I must stress that GDL Trading & Services handled this case positively. They actually gave their customer a full refund and they concluded their letter in reply to Mr Caruana's complaint by expressing their hope that they would still retain his custom.

At this point, in view of the references made to guarantees, I must clarify the difference between a legal guarantee and a commercial guarantee. The legal guarantee, which is valid for two years, is obligatory. All items bought are subject to a legal guarantee which is there to protect consumers. On the other hand the commercial guarantee is not obligatory; it is offered by reputable outlets on the basis of the principles of a liberalised marketplace in which traders compete with each other to win our custom by offering a better service. Basically, the concept is about offering something better than other competing outlets are offering.

Indeed, as regular readers know, we have a list of six companies who offer "no nonsense" commercial guarantees, which was last featured on March 21 and will be featured next Sunday.