In this case, the appellate court upheld the F.T.C. decision that a developer's representation and omissions in connection with the sale of rural land was deceptive. This decision applied the deception standard contained in the F.T.C. Policy Statement on Deceptive Acts and Practices. Even if a party signs a form contract and even if the party had an opportunity to read the contract, an unexpected or particularly oppressive provision in the agreement may be unenforceable for lack of agreement. See Dairy Farm Leasing Co., Inv. As the name implies, service contracts are new contracts and not warranties that are provided with the item.
Warranties come with products at no extra cost.
A service contract is a promise of service in exchange for fee. If you have a good warranty you probably will not need to buy the extra protection a service contract offers. In fact, you may be buying coverage you already have under your express or implied warranty. As with any other contract, read all the provisions and weigh the terms carefully before you buy. See Chapter 6 of this Guide at 6.5 and 6.10.