- A warranty is an assurance that if a product or service breaks down or fails to meet the consumer's expectation, it can be redeemed for a replacement or repair. Warranties often have a set time period before they elapse.
- Warranties are an added benefit that is a selling tool for the product or service. They also serve as additional revenue for the manufacturer.
- Consumers must consider the overall cost of the product and whether it is beneficial to buy a warranty. They must also consider how long they wish the product to last.
- There are warranties for electronic products like radios and computers. Warranties also exist for automobiles for a certain time period and mileage.
- Warranties give consumers a standard channel for recourse when they are unhappy with a product or service they have received. It also shows good faith on the part of the manufacturer.
