Extended Warranty Contracts

Business, Legal & Accounting Glossary

Definition: Extended Warranty Contracts



Full Definition of Extended Warranty Contracts


Warranty coverage on an item that kicks in after the warranty coverage provided by the manufacturer or seller expires. Many consumers are encouraged to buy extended warranties (also called service contracts) when they buy cars or appliances. In the case of appliances and electronic equipment, extended warranties are all profit for the seller and not much benefit to the buyer because only about 3% of goods ever break down during an extended warranty period. An extended warranty may make sense, however, if you are buying a brand new model in the first few months after it has been manufactured.


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Extended Warranty Contracts. PayrollHeaven.com. Retrieved September 27, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/extended-warranty-contracts/

Definition Sources


Definitions for Extended Warranty Contracts are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 22nd April, 2020 | 1 Views.