Final answer:
Yes, you should explain all warranty conditions to customers at the time of purchase as it helps ensure they are fully informed and can foster trust.
Step-by-step explanation:
Option 1 is true: You should explain all warranty conditions to your customer at the time of purchase. A warranty is a seller's promise to fix or replace the good at least for a certain period of time if something goes wrong. Additionally, a seller may offer a service contract, which is an agreement where the buyer pays extra for the assurance that any issues will be addressed for a set time period. This is particularly common with significant purchases, such as cars, appliances, and even houses. Knowing the warranty and service contract details is critical for consumers to make informed decisions and helps to build trust in the transaction.