Sec

MAGNUSON-MOSS WARRANTY-FEDERAL TRADE COMMISSION IMPROVEMENT ACT

Sec. 2301. Definitions

For the purposes of this chapter:

v (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).

v (2) The term ''Commission'' means the Federal Trade Commission.

v (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).

v (4) The term ''supplier'' means any person engaged in the
business of making a consumer product directly or indirectly
available to consumers.

v (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.

v (6) The term ''written warranty'' means -

Ø (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

Ø (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.

v (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.

v (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.

v (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.

v (10) The term ''remedy'' means whichever of the following
actions the warrantor elects:

Ø (A) repair,

Ø (B) replacement, or

Ø (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.

v (11) The term ''replacement'' means furnishing a new consumer
product which is identical or reasonably equivalent to the
warranted consumer product.

v (12) The term ''refund'' means refunding the actual purchase
price (less reasonable depreciation based on actual use where
permitted by rules of the Commission).

v (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.

v (14) The term ''commerce'' means trade, traffic, commerce, or
transportation -

Ø (A) between a place in a State and any place outside thereof,
or

Ø (B) which affects trade, traffic, commerce, or transportation
described in subparagraph (A).

v (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.

Sec. 2302. Rules governing contents of warranties

v (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:

Ø (1) The clear identification of the names and addresses of the
warrantors.

Ø (2) The identity of the party or parties to whom the warranty
is extended.

Ø (3) The products or parts covered.

Ø (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.

Ø (5) A statement of what the consumer must do and expenses he
must bear.

Ø (6) Exceptions and exclusions from the terms of the warranty.

Ø (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.

Ø (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.

Ø (9) A brief, general description of the legal remedies
available to the consumer.

Ø (10) The time at which the warrantor will perform any
obligations under the warranty.

Ø (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.

Ø (12) The characteristics or properties of the products, or
parts thereof, that are not covered by the warranty.

Ø (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.

v (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

v (1)

Ø (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.

Ø (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.

v (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.

v (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).

v (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 -

Ø (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.

v (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.

v (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.

Sec. 2303. Designation of written warranties

v (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:

Ø (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''.

Ø (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''.

v (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.

v (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.

v (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''.

Sec. 2303. Designation of written warranties

Ø (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''.