Now, consumer laws may differ from country to country, but here's something that's true of most countries with fair trading...
ANYONE buying an extended warranty is getting ripped off. They're getting you to pay them an amount of money for something that you are entitled to for free.
It's called different things in different countries. In Australia, it's called Statutory Warranty.
You have your written manufacturer warranty (usually the one year warranty that is in the box) and your statutory warranty (covering the 'reasonable' life of a product). Of course, no manufacturer will advertise or inform you that you have statutory warranty rights outside of their warranty, because obviously they count on one of two things; 1.Your product breaks down outside written warranty, so you just replace it out of your own pocket, or 2. They want to upsell you for a so-called Extended Warranty.
I'll have to find the survey they did, but it's something like 1 in 100 people questioned knew that they had consumer rights outside of a written warranty.
So, how does it work?
You buy a shiny new 17" MacBook Pro, maxed out with all the trimmings. You decline the extended AppleCare and, lo and behold, it just plain dies after 18 months.
You go back to the store with your laptop, but they tell you they can't help you because it's not covered under their manufacturer warranty. Surprisingly, this is not illegal, because they're telling the truth; it's NOT covered under their WRITTEN manufacturer warranty. But it SHOULD be covered under your implied statutory warranty rights.
You see, the 'reasonable life' of a product is not something a manufacturer can make public knowledge. Firstly, if they tell you right from the start that your laptop will only last 5 years, you'll be reluctant to buy it, even if you had no intention of owning it for that whole time. Secondly, whatever's written is as good as a guarantee. If they say your laptop will only last 5 years, and it dies after 3, then their whole warranty system goes out the window and they know they'll no longer be able to get away with the shell game that is the warranty system.
Therefore, the 'reasonable life' of a product operates on a sliding scale. If you paid $3000 for your laptop, never made any modifications to it, used it within what could be considered normal use, then there's no excuse for it to fail after only 18 months. And despite being '6 months out of warranty', a small claims court would usually force the manufacturer to honour the statutory warranty...if it got to that. But businesses know all about this, and if you mention that you're aware of your implied/statutory warranty rights for the 'reasonable life' of a product, you'll likely get a sly wink and nod as they wrap up your repaired/replaced laptop.
That's not to say that you should run down to Best Buy every 18 months when your $5 chinese MP3 player breaks down. That's not going to get more than a "Well, you shouldn't have bought a crappy $5 chinese MP3 player..." from both the manufacturer and the consumer affairs department in your area.
But if you put down a few grand for a brand name TV, computer, fridge etc., then you would reasonably expect it to last a good 10 years or more of normal everyday use. And consumer affairs/fair trading assumes this too, which is why they will enforce by law if necessary your right to repair/replacement outside of written manufacturer warranty.
But keep in mind; you still need to follow the manufacturer warranty conditions, no matter what stupid clauses they have in there. If they say you can't open a certain seal, then you can't do it. If they say jumping on a trampoline with your new blender is against warranty, then it's void if you do. These things are there so that if you do them, they have the weight in their corner when you bring your laptop in 6 months outside of warranty, because they can claim that your breaking of their warranty conditions created an unforeseen condition that was outside their control.
I urge everyone to find their regional/state/federal department of consumer affairs (or whatever it's called in your country) and find out exactly what your rights are in regards to 'reasonable life' warranties.
This has been long-winded, I know, but hopefully it will save a few people from getting sucked in by the extended warranty scams.