VATINS3705 - Types of insurance: warranties and guarantees: general

A 바카라 사이트˜warranty바카라 사이트™ or 바카라 사이트˜guarantee바카라 사이트™ may constitute either of the following types of supply:

  1. an undertaking, or guarantee, given by the retailer or manufacturer to the customer that if goods should prove to be faulty within a certain time limit then they will bear the cost of providing the appropriate repairs or replacement parts; and
  2. a separate warranty, usually provided by someone other than the retailer or manufacturer, which provides cover against the risk of the goods proving to be faulty within a certain period.

Situation (a) covers the basic (usually) twelve month warranty that effectively covers the trader바카라 사이트™s responsibilities under the Sale of Goods Act. This may have some or all of the characteristics of insurance (see VATINS2110) but will not be insurance if the warranty is a consequence of the contract of sale, under which the substance of the provider바카라 사이트™s obligation is the sale of goods that meet the required standard.

Situation (b) typically covers supplies of 바카라 사이트˜extended warranties바카라 사이트™ and similar services. The liability of a charge for this type of warranty is considered in VATINS3720.