Final answer:
Developers must provide buyers with information about warranties and the option to purchase service contracts before signing a contract. These offerings assure buyers of repair or replacement for a certain time and help in situations with imperfect information.
Step-by-step explanation:
Before anyone signs a contract, developers must give buyers important information that can include a warranty, which serves as a promise to fix or replace the product if necessary within a certain time period. Moreover, developers can also offer a service contract, where in exchange for an additional fee, they agree to repair anything that goes wrong for a predetermined period.
These options are commonly offered with substantial purchases, such as cars, appliances, and houses, and they provide reassurance to buyers in cases of imperfect information.