Ipad warranty and aftercare

Dear moderators- please note that this is a genuine question, it is not a non-constructive rant or complaint, it is not off topic.
A 15 year old member of my party purchased an ipad2 in LA last month. She was told that as she lived in the UK she would need to purchase the Applecare premium. Later I returned to the store with her to question the necessity of the extra purchase. I was told that in the event of hardware failures she would be able to return the ipad to a UK Apple store for a free repair (within the initial 12 month period).  Armed with this knowledge she asked for (and received) a refund.
Given that the initial advice was incorrect, I am not 100% confident that the latter is correct. Can anyone clarify the situation?
Additionally after the 12month period does the Applecare only cover hardware failure? Surely the likelihood of hardware failures in this period is miniscule.
Thanks in advance.
BTW MODS if I have posted in the wrong place then please move rather than delete my post, tnx

sorry guys...
I guess I phrased the first part of my question badly.
She was told that she HAD to take the AppleCare if she wanted any cover outside of the USA, ie she was led to believe that 12 month warranty was limited to the USA only, and that only by buying AppleCare she would end up with cover in the UK (with the added benefit of an extra 12 months plus phone support).
Later when I pushed the salesman on the subject he then said that the standard 12 month warranty would be honoured in the UK.
I assume that statement 1 is false, what about statement 2?

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