Producers are not needed to supply service warranties, according to the Magnuson-Moss Service Warranty Act, a federal law gone by the United States Congress in 1975, that governs customer item guarantees. The Act needs producers of customer items to offer customers with in-depth info about guarantee protection consisting of, 1) offering customers with total guarantee terms, 2) offering customers with a method to compare service warranty protection prior to purchasing, in addition to 3) promote competitors based upon service warranty protection, and 4) enhance rewards for business to prompt and completely perform their guarantee responsibilities and to solve any conflicts with a minimum of hold-up and expenditure to customers.

It does not need a producer to supply a composed guarantee, nor does it apply to oral guarantees. It likewise does not use service warranties on services, just on items other than in cases where a guarantee covers both the parts offered a repair work and the craftsmanship in making that repair work. It does not use to guarantees on industrial or resold items. Maker guarantee items are planned to safeguard the customer from item failure throughout the protection duration, and need the producer to approximate precisely not just sales projections for the item, however how typically an item may stop working, such that funds, or a 'guarantee reserve', can be reserved to money future possible warrantied item failures. For producers which anticipate well, the reserved funds safeguard them from unanticipated expenses associated with greater failure rates, and can likewise be an advantage, when failures are lower, contributing straight to their bottom line.