Florida Building Contractor Business/Finance Practice Exam

To limit a manufacturer's responsibility in a construction contract, which type of warranty is often used?

1. Full warranty

2. Material only warranty

3. Service warranty

4. Extended warranty

The correct answer is: Material only warranty

A material only warranty is often used in construction contracts to limit a manufacturer's responsibility. This type of warranty focuses specifically on the materials supplied for a project, ensuring that they are free from defects and compliant with specified standards. By restricting the warranty to materials, manufacturers can limit their liability for issues that may arise during installation, performance, or the overall execution of the project, which they do not directly control. In the context of construction contracts, it is common for manufacturers to want to limit their exposure to claims that may involve broader aspects of the construction process, such as workmanship or design flaws. Therefore, the material only warranty allows them to affirm the quality of the materials while not extending that assurance to the entire assembly or application of those materials. Other types of warranties, such as full warranties, cover more extensive aspects and generally provide broader protection, which isn't conducive to limiting liability. Service warranties typically offer protection for labor or maintenance rather than solely the materials. Extended warranties usually provide coverage for a longer period but also encompass a wider array of responsibilities. Hence, these options do not serve the specific function of limiting a manufacturer’s liability in the same targeted manner that a material only warranty does.