WARRANTIES,
LIABILITIES, PATENTS,
BIDS, AND INSURANCE
Discuss warranties, liabilities,
OBJECTIVE patents, bids, and insurance in
relation to the field of electrical
engineering profession
A written statement that promises
the good condition of a product
Warranties States that the maker is responsible
for repairing or replacing the
product
1. Implied Warranty
Types of A presumed assurance in
product sales.
Warranty A guarantee that is not
written down or explicitly
spoken.
Under implied warranty there are
several other warranty types
including the following:
Types of a) Warranty of Merchantability
Warranty b) Warranty of Fitness For A
Particular Purpose
c) Warranty of Title
d) Warranty of Habitability
2. Extended Warranty
also called service agreement
Types of Covers all or some of the cost of
certain repairs after the standard
Warranty factory warranty expires.
It is also known as “Vehicle Service
Contract”
3. Express Warranty
Types of
Not automatically a part of
the sales contract based on
state law
Warranty Are explicitly offered
warranties
The period of time that
warrant free repair and
Warranty adjustment services in case of
a malfunction occurred under
Period normal use that has followed
instruction manuals.
Difference Guarantee means free-of-
between charge replacement,
whereas Warranty means
Guarantee replacement causing
expenses to the customer.
and Warranty
Many products, such as
electrical goods, are offered
with a manufacturer's
guarantee or sold with a
Do all products manufacturer's warranty that
often lasts for one year.
have warranty? Guarantees and warranties are
a contract between you and the
manufacturer, and the
manufacturer must do whatever
it says it will do in them.
If you can't find the guarantee or
warranty, contact the seller or
trader and ask if they have a copy or
the manufacturer's contact details.
How do I claim When you make a claim, you'll
usually need: proof of purchase -
warranty? usually a receipt showing where and
when you bought the goods, details
of what the problem is.
LIABILITIES
Defined as a company's legal financial debts or obligations
that arise during the course of business operations.
Liabilities are settled over time through the transfer of
economic benefits including money, goods, or services.
It include loans, accounts payable, mortgages, and
deferred revenues.
CLASSIFICATION OF
LIABILITIES
1. Current liabilities (short-term liabilities)
are liabilities that are due and payable within one
year.
Examples:
Accounts payable, interest payable, income tax payable, bills
payable, bank account overdrafts, accrued expenses, and short-
term loans.
CLASSIFICATION OF
LIABILITIES
2. Non-current liabilities (long-term liabilities)
are liabilities that are due after a year or more.
Examples:
Bonds payable, long-term notes payable, deferred tax liabilities,
mortgage payable, and capital lease.
CLASSIFICATION OF
LIABILITIES
3. Contingent liabilities
are liabilities that may or may not arise depending on a
certain event.
Examples:
Lawsuits and product warranties.
DIFFERENCE BETWEEN
LIABILITIES AND DEBT
The debt refers to borrowed money, the
liabilities to an obligation of any kind. All
debts are liabilities, but not all liabilities
are debts.
PATENT
An exclusive right that gives the inventor the right to exclude others
from making, using, or selling the product of his invention during the
life of the patent.
Government agencies typically handle and approve applications for
patents. The government agency responsible for grant of patent rights
in the Philippines is the Intellectual Property Office of the Philippines
(IPO)
THREE TYPES
OF PATENTS
1. Utility Patents
A patent that covers the creation of a new
or improved and useful product, process, or
machine
Also known as “Patent for Invention”
THREE TYPES
OF PATENTS
Utility patents are granted for 20 years from the
date that the patent application was filed. In
addition to the initial patent filing fees, inventors
must submit maintenance fees throughout the life of
the patent in order to keep the patent’s protection.
It prevents others from manufacturing, selling, using
or distributing your invention, and once you’ve been
filed for a utility patent, your invention will have
immediate “patent pending” status, which acts as a
disclaimer until the patent has formally issued.
THREE TYPES
OF PATENTS
2. Design Patents
A design patent protects its aesthetic appearance.
Design patents can be issued for the appearance,
design, shape or general ornamentation of an
invention. A design patent is good for 14 years from
the date the patent was granted.
THREE TYPES
OF PATENTS
Unlike utility patents, there are no maintenance fees
associated with a design patent, and the patent is
sustained without question once it is issued. A design
patent prevents others from using, selling or
manufacturing the appearance of your product. Again,
the protection is only for its aesthetics and not its
function. A design patent can’t be granted if a similar
design exists, and it doesn’t not have to be an exact
copy, but must be very similar.
THREE TYPES
OF PATENTS
3. Plant Patents
It is possible to invent or discover a new and
distinctive plant, and patent protection can be
sought via a plant patents.
A new and distinct asexually reproduce plant
that is invented or discovered can be patent
protected.
THREE TYPES
OF PATENTS
Plant patents have a duration of 20 years from the
effective filing date of the corresponding patent
application. The remaining three types of patents
are known as Reissue Patents, Defensive
Publications, and Statutory Invention Registrations.
These last three patent types are encountered
infrequently and are only appropriate in limited
circumstances.
An offer made by an investor,
trader, or dealer in an effort to
buy a security, commodity, or
currency.
BID Also refers to the price at which a
market maker is willing to buy a
security. But unlike retail buyers,
market makers must also display
an ask price.
Highest Bid
The bidder who makes the highest bid
TYPES OF over the amount due for the tax lien is
the winning bidder. Any amount you
BIDDING pay for the tax lien beyond the amount
due is put into an account that earns
interest over time. This excess amount
is called the bid premium.
Buyer’s bid
The buyer’s bid is similar to the
highest bid. You will bid a dollar
TYPES OF amount for the tax lien. However,
the amount of your bid that is in
excess of the amount due on the
BIDDING tax lien will not be returned to
you if the property owner redeems
the tax lien. The more you pay for
the tax lien, the lower your
investment yield will be.
Interest Rate Bid
Bidders bid on the minimum interest
rate that is acceptable for them to
TYPES OF receive. Bidders do not bid a tax lien
amount. The winning bidder will have
to pay the delinquent taxes and
BIDDING penalties in full. The interest receive is
the bid. A bid cannot be an interest
rate that is higher than what the taxing
authority can legally charge the
property owner.
Property Interest Bid
Bidders bid for an interest in the
TYPES OF property. The bidder who is willing to
take the smallest portion of undivided
interest in the property will win the tax
BIDDING lien. The idea is to protect the property
owner. If the property owner does not
redeem the tax lien, you can foreclose on
your interest in the property.
INSURANCE
An agreement in which a person makes
regular payments to a company and the
company promises to pay money if the
person is injured or dies.
Insurance is a means of protection from
financial loss.
INSURANCE
An entity which provides insurance
is known as an insurer, insurance
company, or insurance carrier.
A person or entity who buys
insurance is known as an insured or
policyholder.
INSURANCE
The insured receives a contract, called the insurance policy,
which details the conditions and circumstances under which
the insured will be financially compensated. The amount of
money charged by the insurer to the insured for the coverage
set forth in the insurance policy is called the premium. If the
insured experiences a loss which is potentially covered by the
insurance policy, the insured submits a claim to the insurer for
processing by a claims adjuster.
Different Kinds of
Insurance
1. Life Insurance
the greatest factor in having a life insurance is for
those you leave behind.
Different Kinds of
Insurance
Two basic types of life insurance :
Traditional whole life and Term life.
Traditional whole life is a policy you pay on until you
die and Term life is a policy for a set amount of time.
Different Kinds of
Insurance
2. Health Insurance
helps pay for some of those unexpected costs, and
provides financial protection against ongoing large medical
bills.
Philippine Health Insurance Corporation (PhilHealth) was
created in 1995 to implement universal health coverage in
the Philippines. Its stated goal is to ensure a sustainable
national health insurance program for all.
Different Kinds of
Insurance
3. Long-Term Disability Coverage
an insurance most of us think we will never need,
as none of us assumes we will become disabled.
Disability insurance will guarantee that you will
have some income when you can’t work.
Importance of
Insurance
1. Provide safety and security.
2. Generates financial resources.
3. Life insurance encourages savings.
4. Promotes economic growth.
5. Medical support.
6. Spreading of risk.
7. Source of collecting funds.
Insurance is not a
Gambling
The insurance serves indirectly to increase the productivity
of the community by eliminating worry and increasing
initiative. The uncertainty is changed into certainty by
insuring property and life because the insurer promises to
pay a definite sum at damage or death.
Insurance is
NOT Charity
Charity is given without consideration but insurance is not
possible without premium. It provides security and safety to
an individual and to the society although it is a kind of
business because in consideration of premium, it guarantees
the payment of loss. It is a profession because it provides
adequate sources at the time of disasters only by charging a
nominal premium for the service.
