Question $1$: Identifying the Contract and Performance Obligation

Part a: Genus Motors sells an automobile to Marquart Auto Dealers at a price that includes six months of telematics services such as navigation and remote diagnostics. These telematics services are regularly sold on a stand$-$alone basis by Genus Motors for a monthly fee. After the six$-$month period, the consumer can renew these services on a fee basis with Genus Motors.

Instruction: Are the automobile and the telematics services distinct within the contract?

Part b: Air Orillia offers its customers points every time they fly with the airline. During the year, the airline offered $1,000$ points on a flight that was paid for in advance by the customer for $$1,000$ cash. Air Orillia estimates that based on history, only $90\%$ of the points will be redeemed. The stand$-$alone value of the points expected to be redeemed is $$50($taking into account the breakage factor$)$ and the value for the flight is $$980.$

Instruction: Do the loyalty points offer a material right to the customer?