A service contract is an optional agreement for product service that customers sometimes buy. It provides additional protection beyond what the warranty offers on the product.
Service contracts are similar to warranties in that both concerns service for a product. However, there are differences between warranties and service contracts.
Warranties come with a product and are included in the purchase price. In the language of the Act, warranties are part of the basis of the bargain Service contracts, on the other hand, are agreements that are separate from the contract or sale of the product. They are separate either because they are made some time after the sale of the product, or because they cost the customer a fee beyond the purchase price of the product. The Act includes very broad provisions governing service contracts that are explained in the following sections.
