Extended Warranty Law and Legal Definition

An extended warranty refers to service agreement or a service contract which gives a prolonged warranty to consumers. The extended warranty may be offered by the warranty administrator, the retailer or the manufacturer. The extended warranty provides a seller or manufacturer to provide the additional service of replacing or repairing goods that fail within the extended period.

Consumers are confronted with challenges while dealing with the extended warranties. For example, retailers that do not repair in the store, generally sell extended warranties that are third-party policies. This means that even though a person buys the warranty from the retailer, another company deals with claims. This can be frustrating to the consumer because the retailer will not be able to help him/her while a consumer makes a claim.