Long story short got new bike from dicks loan it out for 6 months it had come home with ton rust on chain and gears wonder if the extended warranty cover it or if I can fix it
If the chain and gears are rusted, the cables, brakes, and other components may also be rusted.
Depending upon how much rust is on the chain, it could be cleaned, or may need to be replaced outright. It will stretch prematurely due to the rust if it only needs to be cleaned and will need to be replaced sooner than normal. The gears can be cleaned.
I recommend getting some Boeshield and a wire brush and gently removing it, and wiping everything down with oil-soaked shop towels. The chain could also be run through chain cleaning tool, if you have one.