Warranty Rights FAQ

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I just bought a stereo system, and the sales clerk tried to sell me an extended warranty contract. Should I have bought the contract?

Probably not. Merchants encourage consumers to buy extended warranties (also called service contracts) when buying autos, appliances, or electronic items because these warranties are a source of big profits for stores, which pocket up to 50% of the amount you pay.

Rarely will you have the chance to exercise your rights under an extended warranty. Name-brand electronic equipment and appliances usually don't break down during the first few years (and if they do, they're covered by the original warranty), and often have a life span well beyond the length of the extended warranty.

For More Information

For concise, plain-English answers to hundreds of the most frequently asked legal questions about issues you face every day, read Nolo's Encyclopedia of Everyday Law: Answer to Your Most Frequently Asked Legal Questions, by Shae Irving and the editors of Nolo (Nolo).

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