Guarantee From Law and Economics Perspective

In the recent decades, the production and the supply of goods and services are competitive issues. In this circumstance the role of ensuring the safety of goods is rapidly and completely growing. This role has great importance from an economic (encouraging customers to purchase goods) aspect and legal perspective (protecting the rights of the consumers).Considering this reality warranty is offered in many very different kinds. Sometimes some sort of good is important for choosing warrantee by producer. In some cases the expression " Warrantee" is used instead of "Guarantee" while these two distinctive concepts do overlap with each other in some other ways, they have some differences.Guarantee can also affect the efficiency of the economic institution so not only it is important to protect consumers, but also it has great importance for economic analysis there fore it's function has significant and specific role in increasing the efficiency of the selected type.