In commercial and consumer transactions, a warranty is an obligation that an article or service sold is as factually stated or legally implied by the seller, and that often provides for a specific remedy such as repair or replacement in the event the article or service fails to meet the warranty. A breach of warranty occurs when the promise is broken, i.e., a product is defective or not as should be expected by a reasonable buyer.
In business and legal transactions, a warranty is an assurance by one party to the other party that certain facts or conditions are true or will happen; the other party is permitted to rely on that assurance and seek some type of remedy if it is not true or followed.
In real estate transactions, warranty deed is a promise that the buyer's title to a parcel of land will be defended.
A car warranty extends from a minimal 1 year, more common 3 year and extended 5 years (Lexus offer a 4 year warranty, by default). Crate Engine manufacturers also give warranties based on the manufacturers' and workmanship warranties.
Some companies also offer extended warranties or used car warranties for vehicles up to 12 years old. One can usually buy a warranty from an insurance company or insurance coverholder. The term extended warranty is generally misleading. Non-manufacturer based warranties are technically called motor vehicle service agreements or service contracts. In states which license service contract companies, those companies are required to not sell them as warranties.
New Integrity Motors problems surface (Tahlequah Daily Press)
