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Chapter 07 - Warranties

Chapter 07 - Warranties

27.0701 Warranties of merchantability and fitness for a particular purpose.


(a) Notwithstanding any other provision of law to the contrary, with respect to any goods or services which are the subject of or are intended to become the subject of a consumer transaction, and which are purchased primarily for personal, family, or household use and not for commercial or business use, no merchant shall orally or by written language:

(1) exclude, modify or otherwise attempt to limit any warranty, express or implied, including the warranties of merchantability and fitness for a particular purpose; or

(2) exclude, modify or attempt to limit any remedy provided by law, including the measure of damages available, for a breach of warranty, express or implied. Any such exclusions, modifications or attempted limitations shall be void.

(b) Notwithstanding any language in subsection (a), any merchant may offer warranty coverage greater than the warranty provided by law or the manufacturer, or, offer original warranty coverage where none is provided by the manufacturer.

27.0702 Recovery by merchant against manufacturer.


A merchant may recover from the manufacturer any damages resulting from a breach of the implied warranties of merchantability or fitness for a particular purpose.

27.0703 Statement of applicable warranties-Penalty.


(a) Automobile dealers and retailers of major appliances worth over $150 at the time of sale must inform the consumer purchaser at the time of sale whether any warranties apply to the automobile or major appliance. If any warranty applies to such automobile or major appliance, the automobile dealer or retailer of major appliances must supply such warranty in writing to the consumer purchaser at the time of sale. If no warranty is applicable then that fact must be conspicuously displayed on the sales invoice.

(b) Any allowable conditions imposed upon a consumer purchaser in order to make a claim under an applicable warranty must be stated in a conspicuous manner on the same form on which the warranty is provided.

(c) The Director of the Bureau of Consumer Protection shall enforce this law in any court of appropriate jurisdiction by seeking civil penalties or injunctive relief and any additional relief for the complainant under chapter 04, Title 27.

(d) Civil penalties for violation of this section shall as follows:

(1) first offense, $50:

(2) second offense, $100;

(3) third or more offenses, not less than $350 nor more than $500 for each offense.

27.0704 Consumer remedies.


(a) No automobile dealer or retailer of major appliances covered under this chapter may refuse to accept the return of either defective goods or specially ordered goods which do not conform to the special order when such goods are covered by any warranty. An automobile dealer or retailer of major appliances may choose to repair or replace the goods free of costs for labor and material in lieu of refunding cash to the consumer purchaser, but only if such repairs or replacement can be achieved in a reasonably short period of time.

(b) If replacement or repair cannot be achieved in a reasonably short period of time then the consumer purchaser shall be entitled to a cash refund. In the case of defective goods, the cash refund shall equal the value the goods would have had at the time of the return if such goods had no such defect. In the case of specially ordered goods which do not conform to the special order, the cash refund shall equal the price, including freight, insurance and duties, paid by the consumer purchaser.