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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.
Consumer purchasers of automotive filters are sometimes
told by an automobile dealer's service writer
or mechanic that a
brand of replacement filter cannot be used in the consumer's
vehicle
during the warranty period.
The claim
is made that use of the brand will "Void the Warranty".
with the statement
or implication that only the original equipment brand of filters may be
used.
This, of course, tends to cast doubt on the quality of the
replacement filter.
That Claim is simply not true. If the consumer asks
for the statement in writing, he will not receive it.
Nevertheless,
the consumer may feel uneasy about using replacement filters that are not
original equipment.
With the large number of do-it-yourselfers who
prefer to install their own filters,
this misleading claim should
be corrected.
Under the Magnuson-Moss Act, and general principles
of the Federal Trade Commission Act,
a manufacturer may NOT require the
use of any brand of filter (or any other article)
unless the manufacturer
provides the item free of charge under the terms of the
warranty.
So, if the consumer is told that only the original
equipment filter will not void the warranty,
he should request that the OE
filter be supplied free of charge.
If he is charged for the filter,
the manufacturer will be violating the Magnuson-Moss Warranty Act or other
applicable law.
By providing this information to consumers the
Filter Manufacturers Council can help to combat the erroneous claim
that a
brand of replacement filter other than the original equipment will "Void
the Warranty."
Is should be noted that the Magnuson-Moss Warranty Act is
a federal law that applies to consumer products.
The Federal Trade
Commission has authority to enforce the Magnuson-Moss Warranty Act,
including obtaining injunctions and orders containing affirmative
relief.
In addition, a consumer can bring suit under
the Magnuson-Moss Warranty Act.
Consult your attorney ... if the
ongoing use of petroleum products and genuine dealer oil filters are
insisted by your new car dealer
that they "ONLY" can be used ... and they
actually shorten the usable life of your vehicle ...
and you have asked to
use other equal or superior products ...
Then as a consequence ... your new car dealer by an act
of deception
has stolen from you usability of your vehicle for a period
of time
and a decrease it's market value.
Shortened Service Life, Oil Consumption,
Over heating Damages
And being forced to buy more fuel that
necessary.
All can be partially attributed in some form or the other to the inferior poor quality of petroleum engine oils -
As compared to the
continued use of a high quality full synthetic lubricant - product line.
That has the characteristics of being
engineered to better manage heat degradation of
the lubricants' performance abilities.
Is it any wonder why the fellows who
advertise their synthetic lubricants in the room full of engines ...
Pulling the engine oil pan plugs ..
Running the engines until all but theirs lock up ... ?
Don't compare themselves to anything
other than petroleum ?
In a comparison of apples and oranges ...
They have to be the last man standing
...
Petroleum engine lubricants do not have a chance of being superior -
EVER!
What would it be like ... if these guys actually compared themselves to the world's top 20 synthetic lubricants ...
... Like Cale Yarborough did the last
season he raced ... before he retired.
In that moment of his dyno testing ...
Amsoil 0.30 gave his Unocal Racer 7 more top end horsepower
and 7 more Foot pounds of torque at top end than any of the world's
"other synthetic lubricants - all of which continued to claim to be - '
the best' "
This is what the Magnuson-Moss Warranty Act is.
Here is a link straight to it >> here.
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 http://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.
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