Final answer:
A warranty is a contract guaranteeing free service and replacement parts for a specific time frame, often provided with large purchases to ensure product protection and customer satisfaction. Service contracts can offer similar benefits for an extra fee.
Step-by-step explanation:
A contract guaranteeing free service and replacement parts for a specific time frame is known as a warranty. Sellers may offer this to ensure that if anything goes wrong with the product, they will fix or replace it at no extra cost to the buyer. This is a common practice for large purchases such as cars, appliances, and houses. An alternative to a warranty is a service contract, which usually requires an extra payment from the buyer, but it also covers repairs and malfunctioning issues over a set time period.
Guarantees, warranties, and service contracts provide buyers with explicit reassurance that their purchase is protected. This is not necessarily limited to stated policies; many establishments may offer unstated guarantees, such as refunds or exchanges, to ensure customer satisfaction.