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A relay is an electrically operated switch. Many relays use an electromagnet to mechanically operate a switch, but other operating principles are also used, such as solid-state relays. Relays are used where it is necessary to control a circuit by a separate low-power signal, or where several circuits must be controlled by one signal.
Without this relay, the AC compressor will not have power and the AC system will not function. The AC compressor relay is no different then other electrical relays - its electrical contacts will eventually wear or burn out, and the relay must be replaced.