Month End Glossary

Warranty

A warranty is a guarantee provided by a seller or manufacturer regarding the condition or performance of a product, typically promising to repair or replace the product if it proves to be defective within a certain period of time.

A warranty is a commitment made by the seller or manufacturer of a product to stand behind its condition, performance, or functionality. It serves as an assurance to consumers that the product meets specific standards of quality and reliability. Warranties often guarantee that if the product is found to be defective or fails to perform as promised under normal use within a specified timeframe, the company will repair, replace, or provide compensation for the item. They are common in industries such as electronics, automotive, and appliances as a means of ensuring customer trust. For example, a customer might purchase a washing machine with a one-year warranty, which means that if the machine stops working due to material or workmanship defects within that first year, the manufacturer will fix it at no cost to the consumer. Warranties can vary widely in their terms, including what is covered (parts, labor, or both) and the conditions under which claims can be made. They should be clearly stated and are often accompanied by detailed documentation outlining the obligations of both the seller and the buyer. Warranties are distinguished from insurance in that they generally do not cover accidental damages or losses outside normal wear and tear.

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