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Service Contract Providers Page Finance Division Kimberly Johnson, kimberly.johnson@arkansas.gov |
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Frequently
Asked Questions What is a Service Contract? A "Service Contract," is sometimes referred to as an
extended service plan or extended warranty, gives purchasers of consumer
electronics, appliances, motor vehicles, homes and home systems, the option
to protect their products and investments beyond the terms provided by the manufacturer
or seller. Service Contracts often provide benefits not otherwise available
in a manufacturer's or seller's warranty. Service Contracts offer flexible
benefits that can include product repairs, complete product replacement,
technical support, and emergency repairs and service. In addition to product
and purchase protection, Service Contracts provide consumers with
convenience, time savings, and peace of mind. How does a Service Contract differ from a
warranty?
Unlike a Service Contract for which a consumer pays a separate charge, a
manufacturer's warranty is included in the purchase price of a product. You
don't have to decide whether to "buy" it or not - it simply comes
with your product. Although Service Contracts are sold by manufacturers, as well
as other kinds of companies, they differ from a manufacturer's warranty.
Manufacturers' warranties generally have limited product protection and are
effective for a limited period of time, some as short as 90 days, depending
on the type of product covered. Service Contracts are designed to provide
protection after a manufacturer's warranty expires but they can also overlap
by providing additional benefits generally not included in a manufacturer's
warranty. What is the Service Contract
Industry Council? The Service
Contract Industry Council (SCIC) is a national
non-profit trade association that works with lawmakers across the country to
develop fair and uniform regulation to protect consumers, and is an advocate
for the regulation of the Service Contract industry. |
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