Common use of Hardware Service Clause in Contracts

Hardware Service. If during the Service Contract Term, You submit a valid claim on the Covered Device to notify Us that (i) a defect in materials and workmanship has arisen, or (ii) the capacity of the battery to hold an electrical charge is less than eighty percent (80%) of its original specifications, We will arrange a service event to either: (i) repair the defect, using new or refurbished parts that are equivalent to new in performance and reliability, or (ii) exchange the Covered Device, with a replacement that is new or equivalent to new in performance and reliability. All replacements provided under this Service Contract will, at a minimum, be functionally equivalent to the original Covered Device. If We exchange the Covered Device, the original becomes Our property and the replacement becomes Your property, with coverage for the replacement device effective for the remaining portion of the Service Contract Term. There is no service fee for Hardware Service repairs or replacements.