Warranty Terms

How a Warranty Works

Warranties usually have exceptions that limit the conditions in which a manufacturer will be obligated to rectify a problem. For example, many warranties for common household items only cover the product for up to one year from the date of purchase and usually only if the product in question contains problems resulting from defective parts or workmanship.

As a result of these limited manufacturer warranties, many vendors offer extended warranties. These extended warranties are essentially insurance policies for products that consumers pay for upfront. Coverage will usually last for several years above and beyond the manufacturer's warranty and is often more lenient in terms of limited terms and conditions.
Home warranties can provide discounted repair and replacement services for household appliances and systems, and the best home warranties offer a range of plans depending on the coverage you want.

Types of Warranties

There are two main categories of warranties, expressed and implied. Within each category exists different types of warranties, with their own terms, conditions, and guarantees.

Express Warranty

As its name suggests, an express warranty is an expressed guarantee from a seller to a buyer that the purchased product performs according to certain specifications. If defects are present, the seller will repair or replace the defective product. The warranty can be expressed in writing or verbally in advertising, on the product, or by some other means.

All expressed guarantees are not warranties. For example, puffery is not considered an express warranty. It is an exaggerated language used to advertise a product and attract customers. If a retailer claims that its mattresses will give you the "best night's sleep ever," they are no issuing a guarantee that it will deliver upon that statement. It can be reasonably assumed that this claim is based only on the opinion of the person making the statement in an attempt to promote the product.

Implied Warranty

An implied warranty, or implied warranty of merchantability, is a guarantee that the purchased product functions in the manner designed. It need not be expressed to be valid. This guarantee is implied unless it is explicitly excluded, as is with "as is" sales.

Implied warranties also apply when sellers present and sell a product fit to fulfill a specific purpose. The buyer relies on the seller's expertise to purchase the product. Any statements made by the seller regarding the product can be considered assurances.

Extended Warranty

An extended warranty is a type of warranty that covers the repair and maintenance of a product beyond the manufacturer's warranty. It is more of a service contract than a warranty as it is optional coverage purchased by the buyer covering service-related claims. Like expressed warranties, extended warranties have terms and conditions, and coverage can be denied if the buyer breaches t

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