Common use of Warranty Policy Clause in Contracts

Warranty Policy. A dump truck is sold with a warranty in which PM may or may not be one bundle of the warranty. The warranty provided by the manufacturer is a non- renewing free repair warranty and hence all failures under warranty is repaired without charge to the consumer. We consider the case where the manufacturer offers the consumer two options – (i) warranty and PM is one package or (ii) warranty without PM. In option (i), both PM and CM during the warranty period (W) are borne by the manufacturer whilst in option (ii) the manufacturer is responsible for CM and the consumer for PM. Hence, the options offered by the manufacturer (or OEM) are: Option M1 : OEM provide warranty and PM Option M2 : OEM provide warranty without PM After the expiry of the warranty (meaning that from W to the life cycle (L) of the dump truck), all maintenance actions become the responsibility of the customer.

Warranty Policy. A dump truck is sold with a warranty in which PM may or may not be one bundle of the warranty. The warranty provided by the manufacturer is a non- renewing free repair warranty and hence all failures under warranty is repaired without charge to the consumer. We consider the case where the manufacturer offers the consumer two options – (i) warranty and PM is one package or (ii) warranty without PM. In option (i), both PM and CM during the warranty period (W) are borne by the manufacturer whilst in option (ii) the manufacturer is responsible for CM and the consumer for PM. Hence, the options offered by the manufacturer (or OEM) are: Option M1 : OEM provide warranty and PM Option M2 : OEM provide warranty without PM After the expiry of the warranty (meaning that from W to the life cycle (L𝐿) of the dump truck), all maintenance actions become the responsibility of the customer.