Final answer:
A customer has the right to a refund if a defect covered by the warranty cannot be resolved within the stipulated period. Warranties are promises for repair or replacement, and service contracts offer extended protection for an additional fee.
Step-by-step explanation:
As long as the car is still under warranty, a customer has the right to a refund if they encounter a defect or problem that is covered by the warranty. A warranty is essentially a promise to fix or replace the item, provided that any issues arise within a certain time frame as stipulated in the warranty terms. If the car has a defect within the warranty period and this defect cannot be fixed after a reasonable number of attempts, the customer may be entitled to a refund or a replacement vehicle. The warranty might afford the customer a limited right of replacement or refund, typically within a specific period from the date of purchase. In some cases, the seller may offer a service contract, which is an additional agreement where the buyer pays an extra fee for extended coverage on repairs beyond the standard warranty period.