Final answer:
The purpose of a warranty is to minimize consumer expenses by ensuring that the manufacturer or seller will fix or replace the product if it fails during the warranty period. This helps build consumer confidence and mitigates potential financial burdens associated with large purchases.
Step-by-step explanation:
The purpose of a warranty is to provide repair and/or maintenance for a specific time for a product like a car, home, or major appliance. This assurance is usually included in the price of the product and often provided by the manufacturer.
The main goal of a warranty is A. Minimizing consumer expenses. By offering a warranty, the manufacturer or seller commits to fixing or replacing the product if something goes wrong within the stipulated period, without additional costs to the consumer. This provides consumers with confidence and peace of mind when making large purchases such as cars, appliances, and houses.
A service contract, on the other hand, is an option where the buyer pays an extra amount for extended repair services beyond the warranty period. Similar to warranties, service contracts aim to safeguard the consumer's investment, ensuring that mishaps after the original warranty period do not lead to significant financial burdens.