Does One Size Fit All? A Note on the Harmonization of National Warranty Law as a Tool of Consumer Protection

The European Union's Directive on the Harmonization of national warranty laws directed interest to this particular legal institution. From an economic point of view warranties have different functions. In this note it will be argued that the change in the law of warranties leads to a loss of informational value and to a welfare loss resulting from constricted transaction possibilities, which has not been widely recognised in the recent discussion on warranties.