<p>In warranty claim settlements, there are generally a plethora of instances where the user and system manufacturer/provider have confrontation due to some warranty clauses that might invalidate the warranty without a user being convinced. This paper presents a reliability model for a system comprising one unit functioning in standard, extended and expired (beyond) warranty periods. The user may avail extended warranty by making some additional payment to the manufacturer. The manufacturer offers a warranty subject to certain conditions. If the reason or type of failure in system is against the warranty clauses, then the user has to bear the repair/replacement cost. A user may or may not agree with the decision taken by the manufacturer on warranty. In that case, the user can move for possible escalations or legal intervention. Semi Markov and regenerative techniques are implied to model the situation. The involved time distributions are taken general. System reliability, availability in different periods and other performance measuring parameters are evaluated. Cost-benefit analysis is done for both manufacturer and user by formulating profit functions. Sensitivity analysis for availabilities and profit functions are done. Numerical results are derived using exponential distribution to demonstrate the obtained system measures.</p>