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Consumer Warranty Law: VIRGINIA

Va. Code Ann. §§ 59.1-207.9 to 59.1-207.16:2

Vehicles covered: Passenger cars, pick-up or panel trucks, motorcycles, autocycles, motorized portions of motor homes and mopeds, demonstrators, and lease-purchase vehicles (§ 59.1-207.11).

Persons covered: Purchasers, lessees, transferees during express warranty period, or any person entitled to enforce the warranty (§ 59.1-207.11).

Consumer Warranty Law: WASHINGTON

Wash. Rev. Code §§ 19.118.005 to 19.118.904

Vehicles covered: Leases or purchases made in state, including demonstrators, motorcycles, and lease-purchases; excludes business fleets with ten or more vehicles, non-motor portions of motor homes, and trucks over 19,000 lbs. (§ 19.118.021(11)).

Persons covered: Consumers under agreement or contract for transfer, lease, or purchase of a new vehicle (§ 19.118.021(4)).

Consumer Warranty Law: WEST VIRGINIA

W. Va. Code §§ 46A-6A-1 to 46A-6A-9

Vehicles covered: Passenger automobiles purchased in state or registered and titled there, including pick-up trucks, vans registered as Class A motor vehicles, any self-propelled motor vehicle chassis of a motor home registered as a Class A or Class B motor vehicle, and self-propelled farm vehicles with thirty-five or more horsepower (§ 46A-6A-2(4)).

Consumer Warranty Law: WISCONSIN

Wis. Stat. § 218.0171. See also Wis. Stat. § 218.0163(2)

Vehicles covered: Vehicles registered and purchased or leased in state, including demonstrator or executive vehicles; excludes mopeds, semitrailers and trailers used with trucks (§ 218.0171(1)(d)).

Persons covered: Purchasers or lessees, transferees during express warranty period, or any person entitled to enforce the warranty (§ 218.0171(1)(b)).

Consumer Warranty Law: WYOMING

Wyo. Stat. Ann. § 40-17-101

Vehicles covered: Every vehicle under 10,000 lbs. sold or registered in-state which is self-propelled (§ 40-17-101(a)(ii)). No reference to leased vehicles.

Persons covered: Purchasers, transferees during express warranty period, or any person entitled to enforce the warranty (§ 40-17-101(a)(i)).

Period covered: One year from the date of delivery (§ 40-17-101(b)).

Disclosure requirements: Manufacturer has none.

Consumer Warranty Law: Introductory Materials

This appendix reprints the rules adopted by the Federal Trade Commission (FTC) under the Magnuson-Moss Warranty Act, 16 C.F.R. parts 700 to 703, including amendments reprinted at 80 Fed. Reg. 42,721 (July 20, 2015).

Consumer Warranty Law: Listing of Provisions

TITLE 16—COMMERCIAL PRACTICES

CHAPTER I—FEDERAL TRADE COMMISSION

* * *

SUBCHAPTER G—RULES, REGULATIONS, STATEMENTS AND INTERPRETATIONS UNDER THE MAGNUSON-MOSS WARRANTY ACT

PART 700—INTERPRETATIONS OF MAGNUSON-MOSS WARRANTY ACT

§ 700.1 Products covered.

§ 700.2 Date of manufacture.

§ 700.3 Written warranty.

§ 700.4 Parties “actually making” a written warranty.

§ 700.5 Expressions of general policy.

Consumer Warranty Law: § 700.1 Products covered.

(a) The Act applies to written warranties on tangible personal property which is normally used for personal, family, or household purposes. This definition includes property which is intended to be attached to or installed in any real property without regard to whether it is so attached or installed. This means that a product is a “consumer product” if the use of that type of product is not uncommon. The percentage of sales or the use to which a product is put by any individual buyer is not determinative.

Consumer Warranty Law: 7.7.4.4 Defects Not Discovered Until After Period Expires

The more difficult case is when the defect sued upon was discovered after the expiration of the specified warranty period. This is first of all a question of contract construction. Most courts have held that standard warranty language requires that the defect be discovered within the warranty period.570 For example, in Walsh v. Ford Motor Co.,571 the manufacturer promised to repair or replace any parts “found to be defective” within the warranty period.

Consumer Warranty Law: 7.7.4.6.1 Manufacturer’s knowledge; unconscionability

Courts are reluctant to find that time-limited warranties cover latent defects that are not discovered during the warranty period because of concern that this would nullify the time limit and make the manufacturer a guarantor that the product will be defect-free for its entire life.585 One response to this argument is to show that the manufacturer knew of the defect during the warranty period.

Consumer Warranty Law: § 700.6 Designation of warranties.

(a) Section 103 of the Act, 15 U.S.C. 2303, provides that written warranties on consumer products manufactured after July 4, 1975, and actually costing the consumer more than $10, excluding tax, must be designated either “Full (statement of duration) Warranty” or “Limited Warranty”. Warrantors may include a statement of duration in a limited warranty designation. The designation or designations should appear clearly and conspicuously as a caption, or prominent title, clearly separated from the text of the warranty.

Consumer Warranty Law: § 700.7 Use of warranty registration cards.

(a) Under section 104(b)(1) of the Act, 15 U.S.C. 2304(b)(1), a warrantor offering a full warranty may not impose on consumers any duty other than notification of a defect as a condition of securing remedy of the defect or malfunction, unless such additional duty can be demonstrated by the warrantor to be reasonable. Warrantors have in the past stipulated the return of a “warranty registration” or similar card.

Consumer Warranty Law: § 700.8 Warrantor’s decision as final.

A warrantor shall not indicate in any written warranty or service contract either directly or indirectly that the decision of the warrantor, service contractor, or any designated third party is final or binding in any dispute concerning the warranty or service contract. Nor shall a warrantor or service contractor state that it alone shall determine what is a defect under the agreement. Such statements are deceptive since section 110(d) of the Act, 15 U.S.C. 2310(d), gives state and federal courts jurisdiction over suits for breach of warranty and service contract.

Consumer Warranty Law: § 700.9 Duty to install under a full warranty.

Under section 104(a)(1) of the Act, 15 U.S.C. 2304(a)(1), the remedy under a full warranty must be provided to the consumer without charge. If the warranted product has utility only when installed, a full warranty must provide such installation without charge regardless of whether or not the consumer originally paid for installation by the warrantor or his agent.

Consumer Warranty Law: § 700.10 Prohibited tying.

(a) Section 102(c), 15 U.S.C. 2302(c), prohibits tying arrangements that condition coverage under a written warranty on the consumer’s use of an article or service identified by brand, trade, or corporate name unless that article or service is provided without charge to the consumer.

Consumer Warranty Law: § 700.11 Written warranty, service contract, and insurance distinguished for purposes of compliance under the Act.

(a) The Act recognizes two types of agreements which may provide similar coverage of consumer products, the written warranty, and the service contract. In addition, other agreements may meet the statutory definitions of either “written warranty” or “service contract,” but are sold and regulated under state law as contracts of insurance. One example is the automobile breakdown insurance policies sold in many jurisdictions and regulated by the state as a form of casualty insurance. The McCarran-Ferguson Act, 15 U.S.C.

Consumer Warranty Law: § 700.12 Effective date of 16 CFR parts 701 and 702.

The Statement of Basis and Purpose of the final rules promulgated on December 31, 1975, provides that parts 701 and 702 of this chapter will become effective one year after the date of promulgation, December 31, 1976. The Commission intends this to mean that these rules apply only to written warranties on products manufactured after December 31, 1976.

Consumer Warranty Law: Listing of Provisions

PART 701—DISCLOSURE OF WRITTEN CONSUMER PRODUCT WARRANTY TERMS AND CONDITIONS

§ 701.1 Definitions.

§ 701.2 Scope.

§ 701.3 Written warranty terms.

§ 701.4 Owner registration cards.

AUTHORITY: 15 U.S.C. §§ 2302 and 2309.

SOURCE: 40 Fed. Reg. 60,188 (Dec. 31, 1975), unless otherwise noted.

Consumer Warranty Law: § 701.2 Scope.

The regulations in this part establish requirements for warrantors for disclosing the terms and conditions of written warranties on consumer products actually costing the consumer more than $15.00.

Consumer Warranty Law: § 701.3 Written warranty terms.

(a) Any warrantor warranting to a consumer by means of a written warranty a consumer product actually costing the consumer more than $15.00 shall clearly and conspicuously disclose in a single document in simple and readily understood language, the following items of information:

Consumer Warranty Law: § 701.4 Owner registration cards.

When a warrantor employs any card such as an owner’s registration card, a warranty registration card, or the like, and the return of such card is a condition precedent to warranty coverage and performance, the warrantor shall disclose this fact in the warranty. If the return of such card reasonably appears to be a condition precedent to warranty coverage and performance, but is not such a condition, that fact shall be disclosed in the warranty.

Consumer Warranty Law: Listing of Provisions

PART 702—PRE-SALE AVAILABILITY OF WRITTEN WARRANTY TERMS

§ 702.1 Definitions.

§ 702.2 Scope.

§ 702.3 Pre-sale availability of written warranty terms.

AUTHORITY: 15 U.S.C. §§ 2302 and 2309.

SOURCE: 40 Fed. Reg. 60,189 (Dec. 31, 1975), unless otherwise noted.