Final answer:
The basic model that includes extended warranties and service plans is known as the extended warranty model, which offers additional coverage for repairs on major purchases.
Step-by-step explanation:
The basic model that includes extended warranties and service plans is typically known as the extended warranty model. Sellers may provide a warranty, which essentially is a promise to repair or replace the product within a specific time frame. On top of the basic warranty, sellers often offer the opportunity to purchase a service contract, which requires the buyer to pay an additional fee for extended coverage and repairs for a predetermined period. These options are frequently utilized for major purchases such as vehicles, appliances, and homes, providing buyers with peace of mind and protection against future malfunctions.