WARRANTIES, LIABILITIES, PATENTS, BIDS, AND customers must deal with the Disclaimer

INSURANCE producer and not the seller. a means of denying that you are making one
or more express or implied warranties.
Warranty Warranty Period Vulnerability to express and/or implied
is a written statement that promises the is the period of time that warrant free repair warranties can be reduced somewhat
good condition of a product and states that and adjustment services in case of a through the use of disclaimers.
the maker is responsible for repairing or malfunction occurred under normal use that In the absence of a disclaimer, a breach of
replacing the product usually for certain has followed instruction manuals. The warranty will often give the purchaser of the
period of time after its purchase. period varies according to manufacturers, faulty item the right to recover the cost of
Usually, a written guarantee of the integrity retailers, and products. the item as well as additional damages
of a product and of the maker’s Guarantee caused by that breach of warranty.
responsibility for the repair or replacement is a formal promise or assurance (typically in
of defective parts. writing) that certain conditions will be Liabilities
fulfilled, especially that a product will be as a company's legal financial debts or
Types of Warranty repaired or replaced if not of a specified obligations that arise during the course of
1. Implied Warranty quality and durability. business operations.
o a presumed assurance in product are settled over time through the transfer of
sales. The assurance is treated as a Many products, such as electrical goods, are economic benefits including money, goods,
warranty whether or not the product offered with a manufacturer's guarantee or sold or services.
seller has given assurances of the with a manufacturer's warranty that often lasts It includes loans, accounts payable,
same either in writing or even orally. for one year. mortgages, and deferred revenues.
2. Extended Warranty Loan
o Also called ”Service Agreement”, an Guarantees and warranties are a contract is money, property, or other material goods
extended warranty is usually offered between you and the manufacturer, and the given to another party in exchange for
to customers on top of the standard manufacturer must do whatever it says it will do future repayment of the loan value amount,
warranty that is issued on new in them. along with interest or other finance charges.
products. Accounts Payable
o It is also known as “Vehicle Service How do I claim warranty? is money owed by a business to its suppliers
Contract”. It can be offered by a If you can't find the guarantee or warranty, shown as a liability on a company’s balance
retailer, manufacturer, or warranty contact the seller or trader, and ask if they sheet.
administrator. have a copy or the manufacturer's contact Mortgages
o This type of warranty is prolonged in details. When you make a claim, you'll is a debt instrument, secured by the
nature and is a bit more costly. From usually need: proof of purchase - usually a collateral of specified real estate property,
time to time, multiple years receipt showing where and when you that the borrower is obliged to pay back
extended warranties have it in bought the goods, details of what the with a predetermined set of payments.
writing that for the duration of the problem is.
first year of the warranty, in the
event that a product is defective,
Deferred Revenue o Though the definitions are broad,
also known as “unearned revenue” Debt utility patents cover machines,
refers to advance payments a company - is an amount of money borrowed by one processes, methods, compositions,
receives for products or services that are to party from another. Debt is used by many and anything manufactured that has
be delivered or performed in the future. corporations and individuals as a method of a useful and specific function.
making large purchases that they could not o are granted for 20 years from the
Classifications of Liabilities afford under normal circumstances. date that the patent application was
Current liabilities (short term liabilities) filed. In addition to the initial patent
o Are liabilities that are due and payable Debt arrangement filing fees, inventors must submit
within one year. - gives the borrowing party permission to maintenance fees throughout the
▪ Examples of current liabilities: borrow money under the condition that it is life of the patent in order to keep
• Accounts payable to be paid back at a later date, usually with the patent’s protection.
• interest payable interest. o It prevents others from
• income Difference between liabilities and debt: manufacturing, selling, using, or
• tax payable - In the language of business, the terms distributing your invention, and once
• bills payable "debt" and "liabilities" get thrown around as you’ve been filed for a utility patent,
• bank account if they're the same thing. your invention will have immediate
• accrued expenses - The debt refers to borrowed money, the “patent pending” status, which acts
• short-term loans. liabilities to an obligation of any kind. as a disclaimer until the patent has
- All debts are liabilities, but not all liabilities formally issued.
Non-current liabilities (long-term are debts. 2. Design Patents
liabilities) Patents o While a utility patent protects the
o Are liabilities that are due after a year - is the granting of a property right by a utility or function of a product, a
or more. sovereign authority to an inventor. This design patent protects its aesthetic
▪ Examples of Non-current grant provides the inventor exclusive rights appearance. Design patents can be
liabilities: to the patented process, design, or issued for the appearance, design,
• Bonds payable invention for a designated period in shape, or general ornamentation of
exchange for a comprehensive disclosure of an invention.
• mortgage payable
the invention. Government agencies o A design patent is good for 14 years
• deferred tax liabilities
typically handle and approve applications for from the date the patent was
• capital lease
patents. granted.
• long-term notes payable
o Unlike utility patents, there are no
Three types of patents: maintenance fees associated with a
Contingent liabilities
1. Utility Patents design patent, and the patent is
o Are liabilities that may or may not
o According to the USTPO, 90 percent sustained without question once it is
arise depending on a certain event
of all patents are utility patents, issued.
▪ Examples of contingent liabilities:
which protect the utility or
• Lawsuits functional aspects of an invention.
• Product warranties
 o A design patent prevents others Bids have to pay the delinquent taxes and
from using, selling, or manufacturing - an offer made by an investor, trader, or penalties in full.
the appearance of your product. dealer in an effort to buy a security, o The interest receive is the bid.
Again, the protection is only for its commodity, or currency. o A bid cannot be an interest rate that
aesthetics and not its function. - A bid stipulates the price the potential buyer is higher than what the taxing
o A design patent can’t be granted if a is willing to pay, as well as the quantity he or authority can legally charge the
similar design exists, and it doesn’t she will purchase, for that proposed price. property owner.
not have to be an exact copy but - refers to the price at which a market maker Property Interest Bid
must be very similar. is willing to buy a security. o Bidders bid for an interest in the
3. Plant Patents property. The bidder who is willing
o It is possible to invent or discover a Types of Bidding to take the smallest portion of
new and distinctive plant, and Highest Bid undivided interest in the property
patent protection can be sought via o The bidder who makes the highest will win the tax lien. The idea is to
a plant patents. A new and distinct bid over the amount due for the tax protect the property owner. If the
asexually reproduce plant that is lien is the winning bidder. Any property owner does not redeem
invented or discovered can be amount you pay for the tax lien the tax lien, you can foreclose on
patent protected. This includes beyond the amount due is put into your interest in the property.
plants that are cultivated sports, an account that earns interest over Insurance
mutants, hybrids, transformed time. - an agreement in which a person makes
plants, newly found seedlings, algae, o This excess amount is called the bid regular payments to a company and the
or macro fungi, but not a tuber premium. company promises to pay money if the
propagated plant. Buyer’s Bid person is injured or dies, or to pay money
o have a duration of 20 years from the o The buyer’s bid is similar to the equal to the value of something if it is
effective filing date of the highest bid. damaged, lost, or stolen.
corresponding patent application. o You will bid an amount for the tax Insurer, insurance company, or insurance carrier.
o The remaining three types of patents lien. - An entity which provides insurance
are known as: o However, the amount of your bid insured or policyholder.
▪ Reissue Patents that is in excess of the amount due - A person or entity who buys insurance
▪ Defensive Publications on the tax lien will not be returned Insurance policy
▪ Statutory Invention to you if the property owner - A contract that an insured receives
Registrations. redeems the tax lien. The more you - which details the conditions and
o These last three patent types are pay for the tax lien, the lower your circumstances under which the insured will
encountered infrequently and are investment yield will be. be financially compensated.
only appropriate in limited Interest Rate Bid Premium
circumstances. o Bidders bid on the minimum interest - The amount of money charged by the
rate that is acceptable for them to insurer to the insured for the coverage set
receive. Bidders do not bid a tax lien forth in the insurance policy.
amount. The winning bidder will
 If the insured experiences a loss which is o Philippine Health Insurance
potentially covered by the insurance policy, the Corporation (PhilHealth) was
insured submits a claim to the insurer for created in 1995 to implement
processing by a claims adjuster. universal health coverage in the
Philippines. Its stated goal is to
Types of Insurance: ensure a sustainable national health
• Auto Insurance insurance program for all.
• Gap Insurance Long-term Disability Coverage
• Health Insurance o an insurance most of us think we will
• Income protection insurance never need, as none of us assumes
• Casualty Insurance we will become disabled.
• Life insurance o Disability insurance will guarantee
• Burial Insurance that you will have some income
• Property when you can’t work.
• Liability
Importance of Insurance:
• Credit
1. Provide safety and security.
Other types:
2. Generates financial resources.
• Insurance financing vehicles
3. Life insurance encourages savings.
• Closed community and governmental self-
4. Promotes economic growth.
insurance
5. Medical support.
6. Spreading of risk.
Different kinds of Insurance:
7. Source of collecting funds.
Life Insurance
o the greatest factor in having a life
insurance is for those you leave
behind.
o Two basic types of life insurance:
▪ Traditional whole life
• is a policy you pay on
until you die
▪ Term life
• is a policy for a set
amount of time.
Health Insurance
o helps pay for some of those
unexpected costs and provides
financial protection against ongoing
large medical bills.