It's important to remember that Red is a business, and like many businesses, warranties are used generally as a marketing tool. Unless someone is willing to go to the trouble of challenging Red in small claims (which would almost certainly be successful for the customer if the information he's provided in this thread is accurate), Red will do what they need to do to maintain their bottom line. They are not in business to make you happy. They are in business to make money. If they can find a way out of paying a warranty claim, or simply ignore their own terms and suffer no consequences they will. Human nature, and "business nature".