Commercial Usage Warranty

COMMERCIAL LIMITED WARRANTY

PLEASE READ THE TERMS AND CONDITIONS OF THIS COMMERCIAL LIMITED WARRANTY (THE “WARRANTY”) CAREFULLY.  IF YOU (“OWNER”) PURCHASED A BICYCLE, E-BIKE, CARGO BIKE, FOLDING BIKE OR OTHER VEHICLE (“VEHICLE”) OR OTHER GOODS (COLLECTIVELY WITH VEHICLES “PRODUCTS”) MADE OR SOLD BY MOBILITY HOLDINGS, LTD., (“TERN”), THIS WARRANTY GOVERNS YOUR PURCHASE OF OUR PRODUCTS AND CONTAINS IMPORTANT INFORMATION ABOUT YOUR RIGHTS AND OBLIGATIONS, AS WELL AS LIMITATIONS AND EXCLUSIONS THAT MAY APPLY.  

1. Definition of Commercial Use.  A Vehicle is deemed to be in Commercial Use for purposes of this Warranty when any of the following applies:

  • Mileage.  More than 10% of its total mileage over any rolling 12-month period is for business-related activity; or
  • Frequency. It is used for business-related activities more than 3 times per month on average over a rolling 12-month period; or
  • Revenue. It generates more than $1,000 per year in compensation from its use; or
  • Purpose. It is used as a primary tool for a business or professional activity.

Commuting to and from a fixed workplace, without additional business-related activities, does not constitute “Commercial Use”.

2. Commercial Coverage. Tern provides to the original purchaser, and only the original purchaser, of each Product that is purchased directly from and assembled by Tern or an authorized Tern dealer, regardless of whether the Product is used for Commercial Use or damaged during Commercial Use, or not, the following Warranties:

3. Coverage for Bikes. With respect to all e-bikes, cargo bikes, folding bikes, or other Vehicles, except as otherwise provided in this Limited Warranty:  

  • One Year. Tern warrants that all parts and components are new and unused and shall remain free from defects in materials and workmanship for one year from the date of original purchase, except as provided below.  
  • Five Years.  Tern warrants that Tern-branded or Tern-made frames, forks and handlebar stems are new and unused and shall remain free from defects in materials and workmanship for five years from the date of original purchase.
  • Ten Years.  For all Owners who register for Tern Care within 30 days after making the original purchase, Tern warrants that Tern-branded or Tern-made frames, forks and handlebar stems are free from defects in materials and workmanship for ten years from the date of original purchase.

In the event that applicable law requires longer warranty coverage, Products will be covered for the duration required by law.  

4. Third-Party Parts or Components. The above warranties cover only Tern or BioLogic branded parts.  Tern does not provide warranty coverage for parts and components from 3rd parties, such as Shimano, Suntour or Bosch, but those 3rd party parts may be warrantied directly by their manufacturers in which case separate warranty information for those parts should have been included with your Tern Product when you purchased it.  If not, please let us know.  If you require warranty assistance with such 3rd party parts, please contact your nearest authorized Tern dealer for assistance or visit Tern’s online support site for additional information at www.ternbicycles.com/support.

5. Coverage for Other Products. With respect to all other Tern Products (not Vehicles), such as racks, bags and accessories, Tern warrants that the Product will be free from defects in materials and workmanship for two years from the date of original purchase.

6. Limited Remedy. The sole remedy for a breach of this Warranty is that Tern will investigate to determine whether the Product is defective and, if Tern determines in its sole discretion that it is, will repair or replace the defective Product or parts of a Product, as Tern sees fit to resolve the claim. Due to product evolution, supply chain issues and other factors, identical parts may not always be available, in particular for older models, so Tern may use substitute parts to resolve a warranty claim, but always of equal or greater value. Except by mutual agreement, this Warranty applies only to the original retail purchaser and covers only Products purchased directly from and assembled by Tern or an authorized Tern dealer. Because all models are not sold in all countries, warranty coverage exists only in the country where the Product was purchased and Owner may be charged for certain costs if service requires the sourcing of old or obscure parts or those from another country. For online sales, the purchase location is the location of Owner’s primary residence when the purchase was made.            

7. Exclusions. THIS WARRANTY DOES NOT APPLY, NO COVERAGE EXISTS, AND TERN SHALL HAVE NO OBLIGATION FOR NORMAL WEAR AND TEAR; COSMETIC ISSUES SUCH AS CHIPPING, CRACKING, FADING OR DISCOLORATION OF PAINT FINISH; ROUTINE MAINTENANCE OR ADJUSTMENTS; OR CLAIMED DEFECTS, MALFUNCTIONS OR FAILURES THAT RESULT FROM ABUSE, NEGLECT, IMPROPER ASSEMBLY, IMPROPER MAINTENANCE, IMPROPER USE, IMPROPER LOADING OR IMPROPER OPERATION OF A VEHICLE, INCLUDING WITHOUT LIMITATION RACING, JUMPING, WHEELIES, OFFROADING WITH A VEHICLE NOT BUILT FOR OFFROADING, CRASHES OR COLLISIONS.  PLEASE READ THE OWNER’S MANUAL FOR PROPER USE AND MAINTENANCE, INCLUDING INTENDED ROAD SURFACES.  TERN ALSO DOES NOT PROVIDE ANY WARRANTY COVERAGE FOR VEHICLES THAT HAVE BEEN ALTERED OR REPAIRED BY PERSONS WHO ARE NOT EMPLOYED BY TERN OR AUTHORIZED TERN DEALERS, OR ANY VEHICLE WHOSE FRAME NUMBER AND/OR ID NUMBER HAS BEEN ALTERED, DEFACED, OR IS OTHERWISE NOT CLEARLY IDENTIFIABLE. 

8. DISCLAIMER OF OTHER WARRANTIES. EXCEPT AS SET FORTH ABOVE OR AS OTHERWISE REQUIRED BY LAW, TERN DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. TERN'S RESPONSIBILITY FOR WARRANTY CLAIMS IS LIMITED TO, AT TERN'S SOLE DISCRETION, REPAIR OR REPLACEMENT OF THE PRODUCT WITH THE SAME OR SIMILAR PRODUCT, OR REIMBURSEMENT OF THE ORIGINAL PURCHASE PRICE. IN NO EVENT SHALL TERN BE LIABLE FOR ANY INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES, INCLUDING WITHOUT LIMITATION LIABILITY FOR LOST USE, LOSS PROFITS, BUSINESS INTERRUPTION, OR FOR PUNITIVE DAMAGES.

9. Owner’s Responsibility. Owner acknowledges that operating Vehicles can be inherently hazardous and involve many risks, possibly resulting in injury or death, but certain precautions may reduce such risks.  In particular, Owner agrees, whenever operating a Tern Vehicle, to obey all traffic, safety, and other laws of any kind; always wear a helmet and appropriate clothing and footwear; not operate Vehicles under the influence of alcohol or other intoxicants; exercise extreme caution at all times; and use Vehicles only for their intended uses.  Owner understands and agrees that Vehicles sold by Tern are not toys and are not intended to be operated by children.  Owner agrees to watch Tern’s appropriate Owner Briefing video at www.ternbicycles.com/support, to operate Vehicles on proper road surfaces, store them in a dry environment and perform regular maintenance, including recommended lubrication schedules, and promptly bring the Vehicle to an authorized Tern dealer or distributor in the event of any concerns.   

10. Exercising Warranty Rights. In order to exercise rights under this Warranty, any person who purchased a defective Product from an authorized Tern dealer or distributor shall, upon learning of a suspected defect, promptly stop using the Product and transport the Product or part to a Tern dealer or distributor for inspection and resolution. Except as provided in the following paragraph, Warranty claims will be handled only through an authorized Tern dealer or distributor. Owner is responsible for all costs of transporting the Product or part to and from the dealer or distributor and shall present proof of purchase, in physical or digital format.

11. Dispute Resolution. Any and all claims or disputes arising out of or relating to this Warranty, or the alleged breach thereof, shall be resolved exclusively by arbitration in the capital or a major commercial city of the country or region where the Product was purchased, unless the parties agree otherwise, in accordance with the rules of Arbitration of the International Chamber of Commerce (“ICC”)  then in effect, applying laws of the country in which the Product was purchased.  Claims shall be heard by a single arbitrator, unless the claim amount exceeds $300,000, in which case the dispute shall be heard by a panel of three arbitrators. The language of arbitration shall be English. Except as may be required by law, neither a Party nor an arbitrator may disclose the existence, content, or results of any arbitration hereunder without the prior written consent of both Parties. The language in this Warranty was fairly reviewed and accepted by both Parties and shall be interpreted by its fair meaning, not strictly for or against either Party. Both Parties agree to accept service of legal process by registered or certified mail.  Any final arbitral award issued pursuant to this section shall be final, binding and non-appealable.

12. Exclusivity. The Parties’ rights, liabilities, responsibilities and remedies with respect to any alleged defect, malfunction or nonconformity of the Products shall be exclusively those expressly set forth in these Terms. The waivers, releases, limitations and exclusions expressed in this Warranty shall apply even in the event of the default, negligence, breach of contract or strict liability of the Party released or whose liability is limited and shall extend to that Party’s directors, officers, and employees. 

13. Entire Agreement. The terms of this Warranty constitute the entire agreement between Tern and Owner concerning the subject matter hereof and supersede all prior or contemporaneous agreements, representations, warranties, and understandings.  Unless expressly agreed to by Tern in writing, any term or condition in any purchase order or other document from Owner that purports to add to, or is in any way inconsistent with the terms of this Warranty, shall be inapplicable and of no force and effect whatsoever. 

14. Severability. In the event that any provision in this Warranty, or any portion of a provision, is for any reason held invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Warranty; the Warranty shall be construed as if such invalid, illegal or unenforceable provision was never contained herein; and the Warranty shall be modified so as to carry out the original intent of the Parties to the fullest extent possible.

15. Amendments. This Warranty may be amended only by Tern’s express, written consent.