This came from the Nikon site.....as you can see the No Fault Warranty from Nikon is better than the way it was described in this thread....
Nikon Scope Guarantee
If any Nikon Scope is found to have defects in workmanship or materials, Nikon will, at their option, repair or replace it at no charge, even if you are not the original owner. No time limit applies and no warranty card is required.
Nikon Binocular, Spotting Scope or Fieldscope
NO FAULT POLICY
If your Nikon binocular, spotting scope or Fieldscope requires service or repair not covered by our 25 Year Limited warranty, Nikon, Inc. will repair or replace it (even if it was your fault) for just $10, plus return shipping and handling.
That being said, I've looked through a few pairs of these lately on scouting trips, and I remain very unimpressed with this glass. The Vortex Diamondback is much better, as is the Bushnell Legend Ultra HD. I wouldn't worry at all about the Nikon No Fault Warranty.