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What is a warranty?

A warranty is a written contract between the seller (or original manufacturer) and buyer to repair or replace the item for a specified period of time. Each warranty contract will explicitly say what type of issues are covered.

For example, if the warranty was on a car, it would not cover and damage that was caused by the buyer (i.e. a crash). However, if the transmission or stereo stopped working, then that may be covered. Warranties typically have a time or volume component. So back to the car example, a car warranty might last for 5 years or 50,000 miles. Once that threshold is hit, the warranty is no longer in place and the seller is off the hook for any future issues.

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