Question

New cars often include a manufacturer's warranty covering repairs during an initial period of ownership, such as the first three years or thirty-six thousand miles (whichever comes first). Which term is used for this type of written warranty?

A) Express warranty

B) Implied warranty

C) As-is warranty

D) Extended warranty

Answer 1

The warranty that covers repairs for new cars during an initial period of ownership is called an express warranty. It is a written guarantee that typically covers a certain time period or mileage and offers repair or replacement of the product if issues arise within this period.

Step-by-step explanation:

The type of warranty described in the question is known as an express warranty. This is a written guarantee provided by the seller or manufacturer that specifies the conditions under which the product will be repaired or replaced upon encountering certain issues within a specified time frame or mileage. An express warranty is explicitly stated and is designed to offer peace of mind to the buyer, ensuring that any defects or problems that arise within the warranty period will be taken care of by the manufacturer or seller at no additional cost to the consumer.

In the context of purchasing a new car, the express warranty can be a significant factor in decision-making, especially when comparing the higher upfront cost of a new car with a warranty against the potential repair costs of a used car without such coverage. Additionally, sellers may offer the option to purchase a service contract for an extra fee, which extends the coverage and provides additional protection beyond the initial warranty period.