Extended Warranty & Service Contracts

Experts recommend buying the extended warranty if the total cost is less than 25% of the purchase price?

• True

• False

Most products will not fail during the warranty period.

• True

• False

All products come with written warranties.

• True

• False

A warranty of merchantability is the most common type of:

• service contract

• extended warranty

• implied warranty

• consequential warranty

Failure to register the item with the manufacturer may invalidate the warranty.

• True

• False

If the item is marked"as is" it will not be covered by a warranty.

• True

• False

Cell phone service contracts are designed to cover which of the following more often than not:

• the cell phone

• the actions of the cell phone user

• the cell phone service carrier

• the manufacturer of the cell phone

To avoid paying for an extended warranty use a ___ to buy the item.

• debit card

• check

• bank credit card such as Visa

• store credit card

A major difference between a warranty & service contract is:

• warranties cost extra

• there is no difference they are the same

• service contracts cost extra

• none of the above

Why do retailers push service contracts?

• they are good for the consumer

• they know the products they are selling are of poor quality

• service contracts are good for the economy

• service contracts are almost all pure profit for a business