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xxTIMURxx [149]
3 years ago
9

Read the following except from a warranty. What time period is this warranty for? "This warranty is given by XYZ motors. The Zoo

m car is guaranteed to be free of defects for 30,000 miles or three years, whichever is reached first." 30,000 miles or three years ten years one year 30,000 miles.
Business
1 answer:
ArbitrLikvidat [17]3 years ago
7 0

Answer:

The warranty period is for three years.

Explanation:

A warranty is a promise a buyer receives from the seller that the latter will repair or replace the product should it develop defects within a stated period. Warranties are granted with specific conditions. The universal condition is that the defects in the product are a result of the manufacturing process and not the buyers' misuse. The defect must occur within a stated period.

In the case of XYZ, the stated period is three years. However, the seller has introduced another condition of "or 30,000 miles whichever comes first." For business reasons, and from market experience, the seller expects that XYZ will use the vehicle at an average rate of 10,000 miles per year. At this rate, the warranty will last for three years. Should the buyer use the vehicle at a faster rate than this, the 30,000 miles will be exhausted earlier, which will bring the warranty to an end. If XYZ uses the vehicle at a slower or the expected rate, the warranty will last for three years.

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