In this report prepared to assist the business community in undertaking its responsibility to reexamine warranty policies and practices in the light of consumer expectations, it is recommended that the following policies and practices be adopted by businesses and trade associations: (1) Product warranties should be effective for a period sufficient to allow latent defects to surface, (2) product warranties should be transferable to subsequent owners during period of coverage, (3) manufacturers should provide clear, complete, and simple product and warranty literature for sales personnel and cousumers' use, (4) written warranties should be expressed clearly and simply, (5) trade associations should establish and coordinate industry-wide programs of warranty simplification and clarity, (6) warrantors should systematically and periodically review warranty service policies and programs to eliminate unnecessary constraints inhibiting good service. Similarly, positive incentives should be adopted to encourage effective warranty service, (7) warrantors should regularly review warranty policies on compensation to servicing agencies to insure that they adequately cover all reasonable expenses, (8) warrantors should establish direct working relationships with consumer protection agencies and assist these agencies in resolving consumer problems, and (9) warrantors should encourage and support autonomous industry-wide consumer complaint review panels established by trade associations. (WL)