Question

What is a warranty?

a) (Guarantees that an insurance company will pay a benefit)
b) (Is a statement believe to be true to the best of one's knowledge)
c) (Cannot be used to void the contract)
d) (Is a statement guaranteed to be true)

Answer 1

A warranty is a seller's promise to fix or replace a product within a specified time if issues arise. It offers buyers security and protection, enhancing confidence in their purchase. Service contracts can extend this protection for an additional cost.

Step-by-step explanation:

A warranty is a promise made by a seller to the buyer regarding the condition of the product. It guarantees that the seller will fix or replace the product if necessary within a specified time period after purchase.

This is an express reassurance that provides buyers with a level of security in their purchase, ensuring that any manufacturing defects or issues will be addressed by the seller at no additional cost to the buyer.

Furthermore, sellers might offer service contracts for an extra fee, which cover repairs or problems for an extended time. These are quite common for substantial purchases like cars, appliances, and even houses.

Guarantees, warranties, and service contracts are forms of consumer protection that give confidence to buyers and can potentially make products more attractive due to the reduced risk.

Aside from these explicit assurances, some businesses provide implicit guarantees, like a movie theater refunding a dissatisfied customer, or restaurants allowing dish exchanges—a sign of good customer service.