Consumer Warranty Law: OHIO
Ohio Rev. Code Ann. § 3905.423 (West)
Ohio Rev. Code Ann. § 3905.423 (West)
Okla. Stat. tit. 15, §§ 141.1 to 141.35
Or. Rev. Stat. §§ 646A.150 to 646A.172
12 Pa. Cons. Stat. §§ 6221, 6222
Prior to execution of a motor vehicle installment sale contract, the seller shall provide to the buyer both an oral and written disclosure in plain language separate from the installment sale contract, advising the buyer that the buyer’s purchase of a service contract (defined in 12 Pa. Cons. Stat. § 6202), warranty, debt cancellation or suspension agreement, or optional insurance product is voluntary and not required as a condition of obtaining a loan (§ 6221). Service contract charges must be itemized (§ 6222).
P.R. Stat. tit. 10, §§ 113 to 113d
R.I. Gen. Laws §§ 31-5.4-1 to 31-5.4-6
The term of any service contract shall be extended by any time period during which the used motor vehicle is in the possession of the dealer or their duly authorized agent for the purpose of repairing the used motor vehicle under the terms of the service contract and at any time during which repair services are unavailable due to war, invasion or strike, fire, flood, or other natural disaster (§ 31-5.4-3).
R.I. Gen. Laws §§ 6-57-1 to 6-57-2
S.C. Code Ann. §§ 38-78-10 to 38-78-120
S.D. Codified Laws §§ 58-1-3, 58-30-144
Motor vehicle service contracts offered by the manufacturer or dealer are exempt from application of the insurance code (§ 58-1-3(3)). License as insurance producer is not required of any party engaged in the sale of or issuance of vehicle service contracts (§ 58-30-144(9)).
Tenn. Code Ann. §§ 56-2-126, 47-18-1401 to 47-18-1404
Service contracts are exempt from insurance regulation (§ 56-2-126). The term of a service contract other than a motor vehicle service contract is extended by the number of days the consumer is deprived of the product while it is being repaired, plus two (§§ 47-18-1401 to 47-18-1404).
Tex. Occ. Code Ann. §§ 1304.001 to 1304.205 (West)
Utah Code Ann. §§ 31A-6a-101 to 31A-6a-110 (West)
Vt. Stat. Ann. tit. 8, §§ 3301, 4247 to 4256
Automobile guarantees are insurance (§ 3301(a)(3)(B)). Forms must be approved by the commissioner. There is no requirement that rates be filed or approved. Contractor must purchase a bond or display other evidence of financial security (§ 4249). Disclosures to the consumer are required (§ 4251); certain practices and contract terms are prohibited (§§ 4253, 4254); and a violation constitutes an unfair or deceptive practice enforceable under the state’s deceptive practices statute (§ 4255(b)).
Va. Code Ann. § 59.1-435 to 59.1-441
Wash. Rev. Code §§ 48.110.010 to 48.110.904
W. Va. Code § 33-4-2
Warranties, maintenance agreements, and service contracts (defined) are excluded from insurance regulation.
Wis. Stat. §§ 616.50 to 616.62
Statute applies to service contracts for property primarily for personal, family, or household use, it does not apply to warranties or maintenance agreements; also certain provisions do not apply to vehicle service contracts (§§ 616.50, 616.52). For all contracts, forms must be approved by insurance commissioner (§ 616.56). For all contracts, sale or loan may not be conditioned on purchase of contract; deceptive or misleading terms or statements are also prohibited (§ 616.58).
Wyo. Stat. Ann. §§ 26-37-101 to 26-37-128, 26-49-101 to 26-49-111
Every state has enacted a “UDAP” statute, a statute of general applicability prohibiting deceptive trade practices, and, in most instances, unfair or unconscionable practices. UDAP is an acronym for “unfair and deceptive acts and practices” and is used here to apply to any general statute proscribing abusive practices against consumers, even if the statute only prohibits deception.
The advantages of a UDAP claim in a warranty action are quite dramatic. Virtually any Uniform Commercial Code (UCC) warranty problem can be viewed as involving deception, the failure to disclose material facts, or unfairness.2 Moreover, sales and leases of consumer goods are almost always within the scope of a UDAP statute. (In a few states, the UDAP statute does not apply to the sale of service contracts regulated as insurance, manufactured homes when treated as realty, or certain practices occurring after the sales transaction.
Despite a UDAP claim’s superior remedies and minimal technical requirements, it is still important in many cases to allege both UDAP and warranty claims. Because Magnuson-Moss Act claims can provide attorney fees for breach of a written or implied warranty in the sale of goods, this nullifies one of the main advantages of a UDAP claim. In fact, a number of states’ UDAP statutes do not provide attorney fees, and thus a Magnuson-Moss Act claim provides superior remedies to the UDAP claim in those states.
UDAP standards for unfairness and deception are broad and evolving concepts that can at least arguably reach any form of consumer warranty abuse or breach.
This appendix analyzes state laws and regulations dealing with service contracts, extended warranties, and mechanical breakdown insurance. It covers laws of general applicability and those applying to motor vehicles and electronic products, but does not cover service contract laws applying to homes or condominiums. This appendix also does not cover the many state statutes regulating service contracts for portable electronic devices. Practitioners should use this appendix for easy reference to their own state’s statute, and to compare their statute with other states’ laws.
Ala. Code §§ 8-32-1 to 8-32-12