
Amsoil Preventative Maintenance Specialists
"Since 1972"
Hopefully this will help some people out on their warranty
questions, and maybe stop the mass of warranty questions every day.
First I'll post a link to a summary of the Magnuson-Moss Warranty Act of 1975,
so if you would like to read it you can find it here.
I will also post the entire US Federal Code at the end of the thread.
This is what the Magnuson-Moss Warranty Act is.
On January 4, 1975, President Ford signed into law the Magnuson-Moss Warranty
Act, Title 1, 101-112, 15 U.S.C. 2301 et seq. This act,
effective July 4, 1975, is designed to "improve the adequacy of information
available to consumers, prevent deception, and improve competition in the
marketing of consumer products. . . ." The Magnuson-Moss Warranty Act
applies only to consumer products, which are defined as "any tangible
personal property which is distributed in commerce and which is normally used
for personal, family, or household purposes (including any such property
intended to be attached to or installed in any real property without regard to
whether it is so attached or installed)."
Under Section 103 of the Act, if a warrantor sells a consumer product
costing more than $15 under written warranty, the writing must state the
warranty in readily understandable language as determined by standards set forth
by the Federal Trade Commission.
There is, however, no requirement that a warranty be given nor that any product
be warranted for any length of time. Thus the Act only requires that when there
is a written warranty, the warrantor clearly disclose the nature of his warranty
obligation prior to the sale of the product. The consumer may then compare
warranty protection, thus shopping for the "best buy." To further
protect the consumer from deception, the Act requires that any written warranty
must be labeled as either a "full" or a "limited" warranty.
Only warranties that meet the standards of the Act may be labeled as
"full."
One of the most important provisions of the Act prohibits a warrantor from
disclaiming or modifying any implied warranty whenever any written warranty is
given or service contract entered into. Implied warranties may, however, be
limited in duration if the limitation is reasonable, conscionable, and set forth
in clear and unmistakable language prominently displayed on the face of the
warranty.
A consumer damaged by breach of warranty, or noncompliance with the act, may sue
in either state or federal district court. Access to federal court, however, is
severely limited by the Act's provision that no claim may be brought in federal
court if: (a) The amount in controversy of any individual claim is less than
$25,000; (b) the amount in controversy is less than the sum or value of $50,000
computed on the basis of all claims in the suit; or (c) a class action is
brought, and the number of named plaintiffs is less than 100. In light of these
requirements it is likely that most suits will be brought in state court. If the
consumer prevails, he is awarded costs and attorneys' fees. Nothing in the Act
invalidates any right or remedy available under state law, and most suits should
proceed on claims based on both the Code and the Act.
This is why the MMW Act was created.
In order to improve the adequacy of information available to consumers,
prevent deception, and improve competition in the marketing of consumer
products, any warrantor warranting a consumer product to a consumer by means of
a written warranty shall. . .fully and conspicuously disclose in simple and
readily understood language the terms and conditions of such warranty. Such
rules . . . require inclusion in the written warranty of any . . . exceptions
and exclusions from the terms of the warranty.’ – Magnuson-Moss Warranty
& Federal Trade Commission improvement Act. Section 2302(a)
This will try to convince you to have some security in your aftermarket
parts.
The Magnuson-Moss Warranty Act:
Protecting tweakers, tuners, and other users of aftermarket equipment.
You want to upgrade your vehicle with aftermarket equipment, but you’re
worried about putting the vehicle’s warranty at risk. It’s no wonder, how
many times have you heard some one at a dealership say that installing
aftermarket equipment automatically voids the warranty?
This common misconception has been repeated often enough to be widely believed
–
though it is completely false.
Fact: Dealers don’t like warranty work, because it pays less than
normal repair work. By promoting the myth that aftermarket equipment
automatically voids warranties, some dealers avoid such low-paying work.
Instead, they attempt to charge customers the prime service rate for work which
is rightfully done under warranty.
Most vehicle owners are not aware they are protected by federal law: the
Magnuson-Moss Warranty – Federal Trade Commission Improvement Act of
1975.
Under the MMW Act, aftermarket equipment which improves
performance does not void a vehicle manufacturer’s original warranty,
unless the warranty clearly and conspicuously states that aftermarket
equipment voids the warranty .
Most states have warranty statutes, as well. Which provide further protections
for vehicle owners.
In other words, that means a dealer can’t wiggle out of his legal warranty
obligation merely because you install aftermarket equipment. To find out if any
aftermarket equipment automatically voids your vehicle’s warranty, check the
owner’s manual. It will be under the sections titled "What is not
covered". Your vehicle manufacturer is simply saying he does not cover the
aftermarket products themselves. He is not saying that the products would void
the vehicle warranty.
Suppose your modified vehicle needs repairs while still under warranty. Without
analyzing the true cause of the problem, the dealer attempts to deny warranty
coverage. He made his decision simply based on the fact that you’ve installed
aftermarket equipment – a convenient way to dodge low-paying warranty work.
Fact: A dealer must prove
– not just say – that aftermarket equipment caused the need for
repairs before he can deny warranty coverage on that basis.
Point out to the dealer the provision of the MMW Act. Require that he explain to
you how the aftermarket equipment caused the problem. If he can’t – or his
explanation sounds questionable – it is your legal right to demand he comply
with the warranty.
If you are being unfairly denied warranty coverage, there is recourse. The
Federal Trade Commission, which administers the MMWAct, monitors compliance with
warranty issues.
Direct complaints to the FTC at (202) 326-3128.
These are direct quotes from US auto manufacturers.
DODGE MOTORS
“Certain changes that you might make to your truck do not, by themselves, void
the warranties described in this booklet. Examples of some of these changes are:
installing non-Chrysler parts, components, or equipment.” – 1997 Warranty
Information supplement to Dodge
GENERAL MOTORS CORPORATION
“If a Chevrolet part fails due to a defect in material or workmanship not
related to (on aftermarket products) or the labor to install it. Chevrolet would
be responsible for covering the failed part.” – Chevrolet Customer
Assistance Center
FORD MOTOR COMPANY
“Installation of a non-genuine Ford item does not, in and of itself, render
warranty void.” – Ford Owner Relations Division
Almost everyone has heard that the mere installation and/or use of aftermarket
parts will void a vehicle manufacturer's warranty. That claim appears to know no
limitations and is heralded from coast to coast with no lack of certainty. In
spite of having unbridled support, however, one basic problem remains: It's
not true!
In looking at the potential for violating a vehicle manufacturer's warranty, it
is important to remember that there are a number of different types of
warranties that may come with a new vehicle.
Express and Implied Warranties
The first is the warranty which is offered by the vehicle manufacturer. This is
called an expressed warranty. This is made by the manufacturer to assume
responsibility for various things which might go wrong with the new vehicle
during a stated period of time, or before the vehicle has traveled a given
distance.
Beyond this, however, the manufacturer is also responsible for what are referred
to as implied warranties. These are not written warranties, but they exist
because it is felt that if a manufacturer produces and sells a product, that
product should meet certain standards. These standards are the basis of implied
warranties.
Keep in mind, however, that with both expressed and implied warranties, there
are circumstances where the manufacturer can be relieved of responsibility to
make good on warranty claims.
Emission Warranties
The warranties we discuss most often are emission warranties. These warranties
are required by, and are a direct result of, the Clean Air Act. Each of these
warranties provides the consumer with certain rights and imposes on the
manufacturer certain obligations. However, as in the case with expressed and
implied warranties, the manufacturer may not have to fulfill those obligations
under all circumstances. These are times when the manufacturer's expressed,
implied and emission warranties can be voided. Let's look at when that can, and
cannot, happen.
Defect Warranty
Looking first at the warranties required by the Clean Air Act, we find that
there are really two warranties. The first warranty is called a defect warranty.
This means the manufacturer is required to produce a vehicle, which at the time
of sale did not have any "defects" that would cause it to fail to meet
the required emission levels for its "useful" life, as defined by the
law.
A manufacturer can be held liable for this warranty when a "defect"
has indeed been found. If, for example, the Environmental Protection Agency
(EPA) found that a large number of a particular type of vehicle was failing to
maintain proper emission levels, they might determine that the failure was the
result of a defect in the vehicle.
While it is unlikely, the vehicle manufacturer could seek to show that the
reason for the vehicle's failure to meet emission standards is that all vehicles
in question had been equipped with aftermarket parts - and those parts were
responsible for the emission failure. If the vehicle manufacturer could prove
his argument, it would be grounds to "void" the defect warranty.
The manufacturer could not, however, seek to void the warranty merely because
aftermarket equipment had been installed on the vehicle. The aftermarket
equipment would have to directly relate to the emission failure to void the
warranty.
Performance Warranty
A second warranty required under the Clean Air Act is the performance warranty.
Under this warranty the vehicle is required to maintain certain emission
performance standards throughout its "useful" life. If the car fails
to meet those requirements, the vehicle manufacturer is required to make
repairs.
What could void this warranty?
The only circumstance under which the vehicle manufacturer may void the emission
warranty is where the aftermarket part is responsible for the warranty claim.
The vehicle manufacturer cannot void the warranty merely because aftermarket
equipment has been installed on the vehicle.
SEMA’s AFTERMARKET Bill of Rights
* You have the RIGHT to buy high-quality, reliable aftermarket accessory,
performance and replacement parts – an affordable and convenient alternative
to vehicle maker’s parts.
* You have the RIGHT to use high-quality aftermarket parts and know that your
new car warranty claims will be honored. In fact, your
dealer may not reject warranty claims simply because an aftermarket part is
present. A warranty denial in such circumstances may be proper only if an
aftermarket part caused the failure being claimed.
* You have the RIGHT to patronize independent retail stores for vehicle parts
and installation. The U.S. aftermarket offers the world’s finest selection of
performance and replacement parts, accessories and styling options. These
aftermarket products satisfy the most discriminating customers seeking
personalized vehicles for today’s lifestyle.
The foregoing message brought to you by SEMA, the Specialty Equipment Market
Association. If you would like further information on what to do or who to call
if your new car warranty is denied, call the Federal Trade Commission at
202/236-3128. To receive expanded information on warranty denial, contact SEMA
online at www.sema.org, or
call 909/396-0289. Your rights are protected through the Magnusson-Moss Warranty
Act, 15 USC, 2302, and the Clean Air Act, 42 USC, 7541.
Under the Magnuson-Moss Warranty Act, which states, in part,
in Title 15, United States Code, Section 2302, subdivision (c) that a
manufacturer, who issues a warranty on your motor vehicle, is prohibited from
requiring you to use a particular brand of product, unless such item is
provided, free of charge, under your warranty or unless the Federal Trade
Commission (FTC) waives this prohibition against the manufacturer.
When a vehicle is purchased new and the owner is protected against the faults
that may occur by an expressed warranty - an offer by the manufacturer to assume
the responsibility for problems with predetermined parts during a stated period
of time. Beyond the expressed warranty, the vehicle manufacturer is often held
responsible for further implied warranties. These state that a manufactured
product should meet certain standards. However, in both
cases, the mere presence of aftermarket parts doesn't void the warranty.
In cases where such a failed aftermarket part is responsible for a warranty
claim, the vehicle manufacturer must arrange a settlement with the part
manufacturer, but by law the new vehicle warranty is not voided. Overall, the
laws governing warranties are very clear. The only time
a new vehicle warranty can be voided is if an aftermarket part has been
installed and it can be proven that it is responsible for an emission warranty
claim.
If you are being unfairly denied warranty coverage, there is recourse. The
Federal Trade Commission, which administers the MMWAct, monitors compliance with
warranty issues. Direct complaints to the FTC at (202) 326-3128.
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The Magnuson-Moss-Warranty Act in full.
§ 2301. Definitions
For the purposes of this chapter:
(1) The term “consumer product” means any tangible personal property which
is distributed in commerce and which is normally used for personal, family, or
household purposes (including any such property intended to be attached to or
installed in any real property without regard to whether it is so attached or
installed).
(2) The term “Commission” means the Federal Trade Commission.
(3) The term “consumer” means a buyer (other than for purposes of resale) of
any consumer product, any person to whom such product is transferred during the
duration of an implied or written warranty (or service contract) applicable to
the product, and any other person who is entitled by the terms of such warranty
(or service contract) or under applicable State law to enforce against the
warrantor (or service contractor) the obligations of the warranty (or service
contract).
(4) The term “supplier” means any person engaged in the business of making a
consumer product directly or indirectly available to consumers.
(5) The term “warrantor” means any supplier or other person who gives or
offers to give a written warranty or who is or may be obligated under an implied
warranty.
(6) The term “written warranty” means—
(A) any written affirmation of fact or written promise made in connection with
the sale of a consumer product by a supplier to a buyer which relates to the
nature of the material or workmanship and affirms or promises that such material
or workmanship is defect free or will meet a specified level of performance over
a specified period of time, or
(B) any undertaking in writing in connection with the sale by a supplier of a
consumer product to refund, repair, replace, or take other remedial action with
respect to such product in the event that such product fails to meet the
specifications set forth in the undertaking,
which written affirmation, promise, or undertaking becomes part of the basis of
the bargain between a supplier and a buyer for purposes other than resale of
such product.
(7) The term “implied warranty” means an implied warranty arising under
State law (as modified by sections 2308 and 2304 (a) of this title) in
connection with the sale by a supplier of a consumer product.
(8) The term “service contract” means a contract in writing to perform, over
a fixed period of time or for a specified duration, services relating to the
maintenance or repair (or both) of a consumer product.
(9) The term “reasonable and necessary maintenance” consists of those
operations
(A) which the consumer reasonably can be expected to perform or have performed
and
(B) which are necessary to keep any consumer product performing its intended
function and operating at a reasonable level of performance.
(10) The term “remedy” means whichever of the following actions the
warrantor elects:
(A) repair,
(B) replacement, or
(C) refund;
except that the warrantor may not elect refund unless (i) the warrantor is
unable to provide replacement and repair is not commercially practicable or
cannot be timely made, or (ii) the consumer is willing to accept such refund.
(11) The term “replacement” means furnishing a new consumer product which is
identical or reasonably equivalent to the warranted consumer product.
(12) The term “refund” means refunding the actual purchase price (less
reasonable depreciation based on actual use where permitted by rules of the
Commission).
(13) The term “distributed in commerce” means sold in commerce, introduced
or delivered for introduction into commerce, or held for sale or distribution
after introduction into commerce.
(14) The term “commerce” means trade, traffic, commerce, or
transportation—
(A) between a place in a State and any place outside thereof, or
(B) which affects trade, traffic, commerce, or transportation described in
subparagraph (A).
(15) The term “State” means a State, the District of Columbia, the
Commonwealth of Puerto Rico, the Virgin Islands, Guam, the Canal Zone, or
American Samoa. The term “State law” includes a law of the United States
applicable only to the District of Columbia or only to a territory or possession
of the United States; and the term “Federal law” excludes any State law.
§ 2302. Rules governing contents of warranties
(a) Full and conspicuous disclosure of terms and conditions; additional
requirements for contents
In order to improve the adequacy of information available to consumers, prevent
deception, and improve competition in the marketing of consumer products, any
warrantor warranting a consumer product to a consumer by means of a written
warranty shall, to the extent required by rules of the Commission, fully and
conspicuously disclose in simple and readily understood language the terms and
conditions of such warranty. Such rules may require inclusion in the written
warranty of any of the following items among others:
(1) The clear identification of the names and addresses of the warrantors.
(2) The identity of the party or parties to whom the warranty is extended.
(3) The products or parts covered.
(4) A statement of what the warrantor will do in the event of a defect,
malfunction, or failure to conform with such written warranty—at whose
expense—and for what period of time.
(5) A statement of what the consumer must do and expenses he must bear.
(6) Exceptions and exclusions from the terms of the warranty.
(7) The step-by-step procedure which the consumer should take in order to obtain
performance of any obligation under the warranty, including the identification
of any person or class of persons authorized to perform the obligations set
forth in the warranty.
(8) Information respecting the availability of any informal dispute settlement
procedure offered by the warrantor and a recital, where the warranty so
provides, that the purchaser may be required to resort to such procedure before
pursuing any legal remedies in the courts.
(9) A brief, general description of the legal remedies available to the
consumer.
(10) The time at which the warrantor will perform any obligations under the
warranty.
(11) The period of time within which, after notice of a defect, malfunction, or
failure to conform with the warranty, the warrantor will perform any obligations
under the warranty.
(12) The characteristics or properties of the products, or parts thereof, that
are not covered by the warranty.
(13) The elements of the warranty in words or phrases which would not mislead a
reasonable, average consumer as to the nature or scope of the warranty.
(b) Availability of terms to consumer; manner and form for presentation and
display of information; duration; extension of period for written warranty or
service contract
(1)
(A) The Commission shall prescribe rules requiring that the terms of any written
warranty on a consumer product be made available to the consumer (or prospective
consumer) prior to the sale of the product to him.
(B) The Commission may prescribe rules for determining the manner and form in
which information with respect to any written warranty of a consumer product
shall be clearly and conspicuously presented or displayed so as not to mislead
the reasonable, average consumer, when such information is contained in
advertising, labeling, point-of-sale material, or other representations in
writing.
(2) Nothing in this chapter (other than paragraph (3) of this subsection) shall
be deemed to authorize the Commission to prescribe the duration of written
warranties given or to require that a consumer product or any of its components
be warranted.
(3) The Commission may prescribe rules for extending the period of time a
written warranty or service contract is in effect to correspond with any period
of time in excess of a reasonable period (not less than 10 days) during which
the consumer is deprived of the use of such consumer product by reason of
failure of the product to conform with the written warranty or by reason of the
failure of the warrantor (or service contractor) to carry out such warranty (or
service contract) within the period specified in the warranty (or service
contract).
(c) Prohibition on conditions for written or implied warranty; waiver by
Commission
No warrantor of a consumer product may condition his written or implied warranty
of such product on the consumer’s using, in connection with such product, any
article or service (other than article or service provided without charge under
the terms of the warranty) which is identified by brand, trade, or corporate
name; except that the prohibition of this subsection may be waived by the
Commission if—
(1) the warrantor satisfies the Commission that the warranted product will
function properly only if the article or service so identified is used in
connection with the warranted product, and
(2) the Commission finds that such a waiver is in the public interest.
The Commission shall identify in the Federal Register, and permit public comment
on, all applications for waiver of the prohibition of this subsection, and shall
publish in the Federal Register its disposition of any such application,
including the reasons therefor.
(d) Incorporation by reference of detailed substantive warranty provisions
The Commission may by rule devise detailed substantive warranty provisions which
warrantors may incorporate by reference in their warranties.
(e) Applicability to consumer products costing more than $5
The provisions of this section apply only to warranties which pertain to
consumer products actually costing the consumer more than $5.
§ 2303. Designation of written warranties
(a) Full (statement of duration) or limited warranty
Any warrantor warranting a consumer product by means of a written warranty shall
clearly and conspicuously designate such warranty in the following manner,
unless exempted from doing so by the Commission pursuant to subsection (c) of
this section:
(1) If the written warranty meets the Federal minimum standards for warranty set
forth in section 2304 of this title, then it shall be conspicuously designated a
“full (statement of duration) warranty”.
(2) If the written warranty does not meet the Federal minimum standards for
warranty set forth in section 2304 of this title, then it shall be conspicuously
designated a “limited warranty”.
(b) Applicability of requirements, standards, etc., to representations or
statements of customer satisfaction
This section and sections 2302 and 2304 of this title shall not apply to
statements or representations which are similar to expressions of general policy
concerning customer satisfaction and which are not subject to any specific
limitations.
(c) Exemptions by Commission
In addition to exercising the authority pertaining to disclosure granted in
section 2302 of this title, the Commission may by rule determine when a written
warranty does not have to be designated either “full (statement of
duration)” or “limited” in accordance with this section.
(d) Applicability to consumer products costing more than $10 and not designated
as full warranties
The provisions of subsections (a) and (c) of this section apply only to
warranties which pertain to consumer products actually costing the consumer more
than $10 and which are not designated “full (statement of duration)
warranties”.
§ 2304. Federal minimum standards for warranties
(a) Remedies under written warranty; duration of implied warranty; exclusion or
limitation on consequential damages for breach of written or implied warranty;
election of refund or replacement
In order for a warrantor warranting a consumer product by means of a written
warranty to meet the Federal minimum standards for warranty—
(1) such warrantor must as a minimum remedy such consumer product within a
reasonable time and without charge, in the case of a defect, malfunction, or
failure to conform with such written warranty;
(2) notwithstanding section 2308 (b) of this title, such warrantor may not
impose any limitation on the duration of any implied warranty on the product;
(3) such warrantor may not exclude or limit consequential damages for breach of
any written or implied warranty on such product, unless such exclusion or
limitation conspicuously appears on the face of the warranty; and
(4) if the product (or a component part thereof) contains a defect or
malfunction after a reasonable number of attempts by the warrantor to remedy
defects or malfunctions in such product, such warrantor must permit the consumer
to elect either a refund for, or replacement without charge of, such product or
part (as the case may be). The Commission may by rule specify for purposes of
this paragraph, what constitutes a reasonable number of attempts to remedy
particular kinds of defects or malfunctions under different circumstances. If
the warrantor replaces a component part of a consumer product, such replacement
shall include installing the part in the product without charge.
(b) Duties and conditions imposed on consumer by warrantor
(1) In fulfilling the duties under subsection (a) of this section respecting a
written warranty, the warrantor shall not impose any duty other than
notification upon any consumer as a condition of securing remedy of any consumer
product which malfunctions, is defective, or does not conform to the written
warranty, unless the warrantor has demonstrated in a rulemaking proceeding, or
can demonstrate in an administrative or judicial enforcement proceeding
(including private enforcement), or in an informal dispute settlement
proceeding, that such a duty is reasonable.
(2) Notwithstanding paragraph (1), a warrantor may require, as a condition to
replacement of, or refund for, any consumer product under subsection (a) of this
section, that such consumer product shall be made available to the warrantor
free and clear of liens and other encumbrances, except as otherwise provided by
rule or order of the Commission in cases in which such a requirement would not
be practicable.
(3) The Commission may, by rule define in detail the duties set forth in
subsection (a) of this section and the applicability of such duties to
warrantors of different categories of consumer products with “full (statement
of duration)” warranties.
(4) The duties under subsection (a) of this section extend from the warrantor to
each person who is a consumer with respect to the consumer product.
(c) Waiver of standards
The performance of the duties under subsection (a) of this section shall not be
required of the warrantor if he can show that the defect, malfunction, or
failure of any warranted consumer product to conform with a written warranty,
was caused by damage (not resulting from defect or malfunction) while in the
possession of the consumer, or unreasonable use (including failure to provide
reasonable and necessary maintenance).
(d) Remedy without charge
For purposes of this section and of section 2302 (c) of this title, the term
“without charge” means that the warrantor may not assess the consumer for
any costs the warrantor or his representatives incur in connection with the
required remedy of a warranted consumer product. An obligation under subsection
(a)(1)(A) of this section to remedy without charge does not necessarily require
the warrantor to compensate the consumer for incidental expenses; however, if
any incidental expenses are incurred because the remedy is not made within a
reasonable time or because the warrantor imposed an unreasonable duty upon the
consumer as a condition of securing remedy, then the consumer shall be entitled
to recover reasonable incidental expenses which are so incurred in any action
against the warrantor.
(e) Incorporation of standards to products designated with full warranty for
purposes of judicial actions
If a supplier designates a warranty applicable to a consumer product as a
“full (statement of duration)” warranty, then the warranty on such product
shall, for purposes of any action under section 2310 (d) of this title or under
any State law, be deemed to incorporate at least the minimum requirements of
this section and rules prescribed under this section.
§ 2305. Full and limited warranting of a consumer product
Nothing in this chapter shall prohibit the selling of a consumer product which
has both full and limited warranties if such warranties are clearly and
conspicuously differentiated.
§ 2306. Service contracts; rules for full, clear and conspicuous disclosure of
terms and conditions; addition to or in lieu of written warranty
(a) The Commission may prescribe by rule the manner and form in which the terms
and conditions of service contracts shall be fully, clearly, and conspicuously
disclosed.
(b) Nothing in this chapter shall be construed to prevent a supplier or
warrantor from entering into a service contract with the consumer in addition to
or in lieu of a written warranty if such contract fully, clearly, and
conspicuously discloses its terms and conditions in simple and readily
understood language.
§ 2307. Designation of representatives by warrantor to perform duties under
written or implied warranty
Nothing in this chapter shall be construed to prevent any warrantor from
designating representatives to perform duties under the written or implied
warranty: Provided, That such warrantor shall make reasonable arrangements for
compensation of such designated representatives, but no such designation shall
relieve the warrantor of his direct responsibilities to the consumer or make the
representative a cowarrantor.
§ 2308. Implied warranties
(a) Restrictions on disclaimers or modifications
No supplier may disclaim or modify (except as provided in subsection (b) of this
section) any implied warranty to a consumer with respect to such consumer
product if
(1) such supplier makes any written warranty to the consumer with respect to
such consumer Product, or
(2) at the time of sale, or within 90 days thereafter, such supplier enters into
a service contract with the consumer which applies to such consumer product.
(b) Limitation on duration
For purposes of this chapter (other than section 2304 (a)(2) of this title),
implied warranties may be limited in duration to the duration of a written
warranty of reasonable duration, if such limitation is conscionable and is set
forth in clear and unmistakable language and prominently displayed on the face
of the warranty.
(c) Effectiveness of disclaimers, modifications, or limitations
A disclaimer, modification, or limitation made in violation of this section
shall be ineffective for purposes of this chapter and State law.
§ 2309. Procedures applicable to promulgation of rules by Commission
(a) Oral presentation
Any rule prescribed under this chapter shall be prescribed in accordance with
section 553 of title 5; except that the Commission shall give interested persons
an opportunity for oral presentations of data, views, and arguments, in addition
to written submissions. A transcript shall be kept of any oral presentation. Any
such rule shall be subject to judicial review under section 57a (e) of this
title in the same manner as rules prescribed under section 57a (a)(1)(B) of this
title, except that section 57a (e)(3)(B) of this title shall not apply.
(b) Warranties and warranty practices involved in sale of used motor vehicles
The Commission shall initiate within one year after January 4, 1975, a
rulemaking proceeding dealing with warranties and warranty practices in
connection with the sale of used motor vehicles; and, to the extent necessary to
supplement the protections offered the consumer by this chapter, shall prescribe
rules dealing with such warranties and practices. In prescribing rules under
this subsection, the Commission may exercise any authority it may have under
this chapter, or other law, and in addition it may require disclosure that a
used motor vehicle is sold without any warranty and specify the form and content
of such disclosure.
§ 2310. Remedies in consumer disputes
(a) Informal dispute settlement procedures; establishment; rules setting forth
minimum requirements; effect of compliance by warrantor; review of informal
procedures or implementation by Commission; application to existing informal
procedures
(1) Congress hereby declares it to be its policy to encourage warrantors to
establish procedures whereby consumer disputes are fairly and expeditiously
settled through informal dispute settlement mechanisms.
(2) The Commission shall prescribe rules setting forth minimum requirements for
any informal dispute settlement procedure which is incorporated into the terms
of a written warranty to which any provision of this chapter applies. Such rules
shall provide for participation in such procedure by independent or governmental
entities.
(3) One or more warrantors may establish an informal dispute settlement
procedure which meets the requirements of the Commission’s rules under
paragraph (2). If—
(A) a warrantor establishes such a procedure,
(B) such procedure, and its implementation, meets the requirements of such
rules, and
(C) he incorporates in a written warranty a requirement that the consumer resort
to such procedure before pursuing any legal remedy under this section respecting
such warranty,
then
(i) the consumer may not commence a civil action (other than a class action)
under subsection (d) of this section unless he initially resorts to such
procedure; and
(ii) a class of consumers may not proceed in a class action under subsection (d)
of this section except to the extent the court determines necessary to establish
the representative capacity of the named plaintiffs, unless the named plaintiffs
(upon notifying the defendant that they are named plaintiffs in a class action
with respect to a warranty obligation) initially resort to such procedure. In
the case of such a class action which is brought in a district court of the
United States, the representative capacity of the named plaintiffs shall be
established in the application of rule 23 of the Federal Rules of Civil
Procedure. In any civil action arising out of a warranty obligation and relating
to a matter considered in such a procedure, any decision in such procedure shall
be admissible in evidence.
(4) The Commission on its own initiative may, or upon written complaint filed by
any interested person shall, review the bona fide operation of any dispute
settlement procedure resort to which is stated in a written warranty to be a
prerequisite to pursuing a legal remedy under this section. If the Commission
finds that such procedure or its implementation fails to comply with the
requirements of the rules under paragraph (2), the Commission may take
appropriate remedial action under any authority it may have under this chapter
or any other provision of law.
(5) Until rules under paragraph (2) take effect, this subsection shall not
affect the validity of any informal dispute settlement procedure respecting
consumer warranties, but in any action under subsection (d) of this section, the
court may invalidate any such procedure if it finds that such procedure is
unfair.
(b) Prohibited acts
It shall be a violation of section 45 (a)(1) of this title for any person to
fail to comply with any requirement imposed on such person by this chapter (or a
rule thereunder) or to violate any prohibition contained in this chapter (or a
rule thereunder).
(c) Injunction proceedings by Attorney General or Commission for deceptive
warranty, noncompliance with requirements, or violating prohibitions;
procedures; definitions
(1) The district courts of the United States shall have jurisdiction of any
action brought by the Attorney General (in his capacity as such), or by the
Commission by any of its attorneys designated by it for such purpose, to
restrain
(A) any warrantor from making a deceptive warranty with respect to a consumer
product, or
(B) any person from failing to comply with any requirement imposed on such
person by or pursuant to this chapter or from violating any prohibition
contained in this chapter. Upon proper showing that, weighing the equities and
considering the Commission’s or Attorney General’s likelihood of ultimate
success, such action would be in the public interest and after notice to the
defendant, a temporary restraining order or preliminary injunction may be
granted without bond. In the case of an action brought by the Commission, if a
complaint under section 45 of this title is not filed within such period (not
exceeding 10 days) as may be specified by the court after the issuance of the
temporary restraining order or preliminary injunction, the order or injunction
shall be dissolved by the court and be of no further force and effect. Any suit
shall be brought in the district in which such person resides or transacts
business. Whenever it appears to the court that the ends of justice require that
other persons should be parties in the action, the court may cause them to be
summoned whether or not they reside in the district in which the court is held,
and to that end process may be served in any district.
(2) For the purposes of this subsection, the term “deceptive warranty” means
(A) a written warranty which
(i) contains an affirmation, promise, description, or representation which is
either false or fraudulent, or which, in light of all of the circumstances,
would mislead a reasonable individual exercising due care; or
(ii) fails to contain information which is necessary in light of all of the
circumstances, to make the warranty not misleading to a reasonable individual
exercising due care; or
(B) a written warranty created by the use of such terms as “guaranty” or
“warranty”, if the terms and conditions of such warranty so limit its scope
and application as to deceive a reasonable individual.
(d) Civil action by consumer for damages, etc.; jurisdiction; recovery of costs
and expenses; cognizable claims
(1) Subject to subsections (a)(3) and (e) of this section, a consumer who is
damaged by the failure of a supplier, warrantor, or service contractor to comply
with any obligation under this chapter, or under a written warranty, implied
warranty, or service contract, may bring suit for damages and other legal and
equitable relief—
(A) in any court of competent jurisdiction in any State or the District of
Columbia; or
(B) in an appropriate district court of the United States, subject to paragraph
(3) of this subsection.
(2) If a consumer finally prevails in any action brought under paragraph (1) of
this subsection, he may be allowed by the court to recover as part of the
judgment a sum equal to the aggregate amount of cost and expenses (including
attorneys’ fees based on actual time expended) determined by the court to have
been reasonably incurred by the plaintiff for or in connection with the
commencement and prosecution of such action, unless the court in its discretion
shall determine that such an award of attorneys’ fees would be inappropriate.
(3) No claim shall be cognizable in a suit brought under paragraph (1)(B) of
this subsection—
(A) if the amount in controversy of any individual claim is less than the sum or
value of $25;
(B) if the amount in controversy is less than the sum or value of $50,000
(exclusive of interests and costs) computed on the basis of all claims to be
determined in this suit; or
(C) if the action is brought as a class action, and the number of named
plaintiffs is less than one hundred.
(e) Class actions; conditions; procedures applicable
No action (other than a class action or an action respecting a warranty to which
subsection (a)(3) of this section applies) may be brought under subsection (d)
of this section for failure to comply with any obligation under any written or
implied warranty or service contract, and a class of consumers may not proceed
in a class action under such subsection with respect to such a failure except to
the extent the court determines necessary to establish the representative
capacity of the named plaintiffs, unless the person obligated under the warranty
or service contract is afforded a reasonable opportunity to cure such failure to
comply. In the case of such a class action (other than a class action respecting
a warranty to which subsection (a)(3) of this section applies) brought under
subsection (d) of this section for breach of any written or implied warranty or
service contract, such reasonable opportunity will be afforded by the named
plaintiffs and they shall at that time notify the defendant that they are acting
on behalf of the class. In the case of such a class action which is brought in a
district court of the United States, the representative capacity of the named
plaintiffs shall be established in the application of rule 23 of the Federal
Rules of Civil Procedure.
(f) Warrantors subject to enforcement of remedies
For purposes of this section, only the warrantor actually making a written
affirmation of fact, promise, or undertaking shall be deemed to have created a
written warranty, and any rights arising thereunder may be enforced under this
section only against such warrantor and no other person.
§ 2311. Applicability to other laws
(a) Federal Trade Commission Act and Federal Seed Act
(1) Nothing contained in this chapter shall be construed to repeal, invalidate,
or supersede the Federal Trade Commission Act [15 U.S.C. 41 et seq.] or any
statute defined therein as an Antitrust Act.
(2) Nothing in this chapter shall be construed to repeal, invalidate, or
supersede the Federal Seed Act [7 U.S.C. 1551 et seq.] and nothing in this
chapter shall apply to seed for planting.
(b) Rights, remedies, and liabilities
(1) Nothing in this chapter shall invalidate or restrict any right or remedy of
any consumer under State law or any other Federal law.
(2) Nothing in this chapter (other than sections 2308 and 2304 (a)(2) and (4) of
this title) shall
(A) affect the liability of, or impose liability on, any person for personal
injury, or
(B) supersede any provision of State law regarding consequential damages for
injury to the person or other injury.
(c) State warranty laws
(1) Except as provided in subsection (b) of this section and in paragraph (2) of
this subsection, a State requirement—
(A) which relates to labeling or disclosure with respect to written warranties
or performance thereunder;
(B) which is within the scope of an applicable requirement of sections 2302,
2303, and 2304 of this title (and rules implementing such sections), and
(C) which is not identical to a requirement of section 2302, 2303, or 2304 of
this title (or a rule thereunder),
shall not be applicable to written warranties complying with such sections (or
rules thereunder).
(2) If, upon application of an appropriate State agency, the Commission
determines (pursuant to rules issued in accordance with section 2309 of this
title) that any requirement of such State covering any transaction to which this
chapter applies
(A) affords protection to consumers greater than the requirements of this
chapter and
(B) does not unduly burden interstate commerce, then such State requirement
shall be applicable (notwithstanding the provisions of paragraph (1) of this
subsection) to the extent specified in such determination for so long as the
State administers and enforces effectively any such greater requirement.
(d) Other Federal warranty laws
This chapter (other than section 2302 (c) of this title) shall be inapplicable
to any written warranty the making or content of which is otherwise governed by
Federal law. If only a portion of a written warranty is so governed by Federal
law, the remaining portion shall be subject to this chapter.
§ 2312. Effective dates
(a) Effective date of chapter
Except as provided in subsection (b) of this section, this chapter shall take
effect 6 months after January 4, 1975, but shall not apply to consumer products
manufactured prior to such date.
(b) Effective date of section 2302 (a)
Section 2302 (a) of this title shall take effect 6 months after the final
publication of rules respecting such section; except that the Commission, for
good cause shown, may postpone the applicability of such sections until one year
after such final publication in order to permit any designated classes of
suppliers to bring their written warranties into compliance with rules
promulgated pursuant to this chapter.
(c) Promulgation of rules
The Commission shall promulgate rules for initial implementation of this chapter
as soon as possible after January 4, 1975, but in no event later than one year
after such date.
Hope this clarifies some things for everyone and instills some confidence in the
fact that they WILL be able to modify their cars without fear of losing their
beloved warranty.
Information >>>> Link1
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