Page 63 - Book8E

CHAPTER 7
Understanding Warranties
Chances are the last time you made a major purchase such as a car, washing machine, television, or other product designed to last a while, the salesperson discussed with you any accompanying product warran- ties, and perhaps even the opportunity to sign up for an extended war- ranty. It’s safe to say that there are many different types of warranties, and not all of them are created equal.
A Warranty by Any Other Name
When you make a major purchase, the manufacturer or seller in turn makes an important promise to stand behind the product. It’s called a warranty. As explained by the Federal Trade Commission (www . ftc .gov), federal law requires that warranties be available for you to read before you buy, even when you’re shopping by catalog or on the Internet.
What is specifically covered by a warranty varies from one warranty to another, so you should compare the extent of warranty coverage just as you compare the style, price, and other characteristics of products. There are four main types of warranties: 1) written warranties, 2) spo- ken warranties, 3) warranty pieces, and 4) implied warranties.
1 . Written Warranties
According to the FTC, written warranties (although not required by law), typically accompany most major purchases. When comparing written warranties, keep the following in mind:
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