Feature Name Warranty For Free

There are two types of warranty; express warranties and implied warranties, including merchantable warranties and warranties of fitness. The seller clearly states express warranties and covers goods advertised to meet consumers' expectations. They can be written or spoken warranties.

A warranty is a product manufacturer or service provider's documented guarantee of quality as promised to a customer. Warranties provide customers with legally-ensured service replacement or correction of issues insofar as the warranty stipulates in its conditions, for the duration of its term.

With a full warranty, a company guarantees to repair or replace a faulty product during the warranty period. If the product is damaged or defective, companies offering a full warranty must repair or replace it within a reasonable time.

There are two types of warranties: express and implied. Under the implied category are three major subtypes: the implied warranty of merchantability (only given by merchants), the implied warranty of fitness for a particular purpose, and the implied warranty of title.

With a full warranty, a company guarantees to repair or replace a faulty product during the warranty period. If the product is damaged or defective, companies offering a full warranty must repair or replace it within a reasonable time.

There are many types of implied warranties including an implied warranty of merchantability, an implied warranty of fitness, an implied warranty of habitability (for a lease), and an implied warranty of marketability (for the sale of real property, also known as a marketable title).

Discussed earlier, the warranty option, like a stock option, has five key components: value of underlying asset, exercise price, time to expiration, volatility, and risk-free rate. The explanations of these components with respect to the warranty option are listed in Table 2.