Warranty Definition, Types, Example, and How It Works| whats is warranty?

 What Is a Warranty?

A warranty can be understood as a guarantee or agreement which is made by the maker or the manufacturer of the product as reassurance regarding the product condition. In some cases, whether the product is within a certain amount of period or any of the parts are faulty, the manufacturer is liable to fix the broken product without charging any extra costs. However, the warranty has some terms and conditions to it adhering to which the necessary repairs or replacements would be made.

• Warranties often have limiting conditions.
• The buyer must fulfill specific duties for the warranty to be honored by the manufacturer.
• The two general types of warranties are expressed and implied.
• The Magnuson-Moss Warranty Act was created to protect consumers from fraud and misrepresentations.1
• A guarantee is a promise from a seller that their product will meet certain quality and performance standards

 Types of Warranty

There are mainly two types of warranties which are given below:

Express warranty

Express warranties are created when the seller makes a guarantee to the buyer that the product/service being offered has certain qualities. For there to exist an express warranty 1) a statement regarding the product/service must be made to the buyer and 2) the statement must play a role in the buyers decision to purchase the product/service. If, after purchase, the buyer feels that the given statement was a misrepresentation of the actual product/service, the buyer can file for breach of express warranty.

Implied Warranty

This type of warranty is not explicitly mentioned by the seller while purchasing the product. However, it is included in the purchase inherently unless specified that a warranty is not present. Therefore, it is an implication that the warranty is active without any verbal or written mentions.

Warranty vs. Guarantee

The terms warranty and guarantee are often used interchangeably, but they have subtle differences. Both require sellers to act on certain promises. However, the difference lies with the level of confidence the manufacturer expresses regarding the product's quality and functionality.

A warranty is a guarantee from a seller that if their product fails to meet certain specifications, a remedy is available. A warranty describes the conditions in which the seller is liable and what conditions are excluded. Although the buyer does not pay a separate cost for the warranty, the warranty price is included in the product's price.

A guarantee is a promise or assurance from the manufacturer or seller that the product will work as described or meet specific quality standards. If it doesn't, the manufacturer will fix or replace it. Guarantees are of no cost to the buyer and can be offered for both products and services.