Table of Contents
What does a warranty do?
A warranty (or extended warranty) may be offered by a retailer at extra cost and acts as sort of insurance policy. It covers the item or service after the manufacturer's guarantee period. Benefits of having a warranty may include paying some of the cost of a repair if the product breaks or becomes faulty.
What best describes a warranty?
Warranty — (1) A guarantee of the performance of a product. Product warranties are included within the definition of the named insured's product in general liability policies. (2) A statement of fact given to an insurer by the insured concerning the insured risk which, if untrue, will void the policy.
What is guarantee and warranty?
Linguistically, both a warranty and a guarantee are promises to the customer. The difference is their legal standing. Guarantees are more or less verbal promises whereas most warranties are written contractual agreements that are more legally binding to protect both parties.
Is warranty the same as insurance?
A car warranty ensures you'll never be stuck with an expensive repair bill in the event of a breakdown, while a car insurance will cover any damages in the event of an accident.
What are warranty types?
There are two types of warranties—express and implied. Each has sub-types intended for different circumstances and products.
What are the 2 categories of warranties?
There are two general types of warranties, expressed and implied. Each category has different sub-types of warranties, with terms, conditions, and guarantees.
Is warranty a type of term?
A warranty is a term of a contract. Depending on the terms of the contract, a product warranty may cover a product such that a manufacturer provides a warranty to a consumer with which the manufacturer has no direct contractual relationship. A warranty may be express or implied.
What is a purpose of a warranty?
A warranty is a product manufacturer or service provider's documented guarantee of quality as promised to a customer. Warranties provide customers with legally-ensured service replacement or correction of issues insofar as the warranty stipulates in its conditions, for the duration of its term.
What does a warranty cover?
What Does Having a Warranty Mean? A warranty means that a manufacturer or seller will replace or repair an item under specific conditions and circumstances. Generally, the conditions and covered issues are outlined in the warranty document.
What are the benefits of warranty?
- The Advantages of Getting a Product Warranty. June 10, 2019. …
- Manufacturer Confidence. …
- Customer Peace of Mind. …
- Reduced Total Cost of Ownership. …
- Increased Resale Value. …
- Learn More About Warranties.
What happens if you have a warranty?
It covers the item or service after the manufacturer's guarantee period. Benefits of having a warranty may include paying some of the cost of a repair if the product breaks or becomes faulty. Warranties may also offer extra cover for accidental damage. A warranty is completely optional.
How is warranty defined?
A warranty is a product manufacturer or service provider's documented guarantee of quality as promised to a customer. Warranties provide customers with legally-ensured service replacement or correction of issues insofar as the warranty stipulates in its conditions, for the duration of its term.
Which of the statements is true regarding a warranty?
Warranties are statements that are guaranteed to be true and are part of the legal contract. Insurers are held to the principle of warranties, not insureds. Breach of warranty is grounds for voiding an insurance contract. The correct answer is: Insureds are held to the principle of warranties.
What is an example of a warranty?
There are many examples of warranties depending on the type of product a consumer is buying. Some examples may include replacing a product such as a mobile phone if it does not the way it is advertised. A consumer may also receive free repair services where a product has been damaged during use.
Which is better guarantee or warranty?
The difference is their legal standing. Guarantees are more or less verbal promises whereas most warranties are written contractual agreements that are more legally binding to protect both parties. Nearly all products, such as your blender, come with an guarantee promising that the product will perform as expected.