Text: HF02153 Text: HF02155 Text: HF02100 - HF02199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 216E.1 DEFINITIONS. 1 2 As used in this chapter, unless the context otherwise 1 3 provides: 1 4 1. "Assistive device" means any item, piece of equipment, 1 5 or product system which is purchased, or whose transfer is 1 6 accepted in this state, and which is used to increase, 1 7 maintain, or improve the functional capabilities of 1 8 individuals with disabilities concerning a major life activity 1 9 as defined in section 225C.46. 1 10 2. "Assistive device dealer" means a person who is in the 1 11 business of selling assistive devices. 1 12 3. "Assistive device lessor" means a person who leases 1 13 assistive devices to consumers, or who holds the lessor's 1 14 rights, under a written lease. 1 15 4. "Collateral costs" means expenses incurred by a con- 1 16 sumer in connection with the repair of a nonconformity, 1 17 including the cost of shipping, sales tax, and of obtaining an 1 18 alternative assistive device. 1 19 5. "Consumer" means any one of the following: 1 20 a. The purchaser of an assistive device, if the assistive 1 21 device was purchased from an assistive device dealer or manu- 1 22 facturer for purposes other than resale. 1 23 b. A person to whom the assistive device is transferred 1 24 for purposes other than resale, if the transfer occurs before 1 25 the expiration of an express warranty applicable to the 1 26 assistive device. 1 27 c. A person who may enforce the warranty. 1 28 d. A person who leases an assistive device from an 1 29 assistive device lessor under a written lease. 1 30 6. "Demonstrator" means an assistive device used primarily 1 31 for the purpose of demonstration to the public. 1 32 7. "Early termination cost" means any expense or obliga- 1 33 tion that an assistive device lessor incurs as a result of 1 34 both the termination of a written lease before the termination 1 35 date set forth in the lease and the return of an assistive 2 1 device to the manufacturer. "Early termination cost" includes 2 2 a penalty for prepayment under a finance arrangement. 2 3 8. "Early termination savings" means any expense or 2 4 obligation that an assistive device lessor avoids as a result 2 5 of both the termination of a written lease before the termina- 2 6 tion date set forth in the lease and the return of an 2 7 assistive device to a manufacturer which shall include an 2 8 interest charge that the assistive device lessor would have 2 9 paid to finance the assistive device or, if the assistive 2 10 device lessor does not finance the assistive device, the 2 11 difference between the total period of the lease term 2 12 remaining after the early termination and the present value of 2 13 that amount at the date of the early termination. 2 14 9. "Manufacturer" means a person who manufactures or 2 15 assembles assistive devices and agents of that person, in- 2 16 cluding an importer, a distributor, a factory branch, dis- 2 17 tributor branch, and any warrantors of the manufacturer's 2 18 assistive device, but does not include an assistive device 2 19 dealer or assistive device lessor. 2 20 10. "Nonconformity" means any defect, malfunction, or 2 21 condition which substantially impairs the use, value, or 2 22 safety of an assistive device or any of its component parts, 2 23 but does not include a condition, defect, or malfunction that 2 24 is the result of abuse, neglect, or unauthorized modification 2 25 or alteration of the assistive device by the consumer. 2 26 11. "Reasonable attempt to repair" means any of the 2 27 following occurring within the term of an express warranty 2 28 applicable to an assistive device or within one year after 2 29 first delivery of the assistive device to a consumer, 2 30 whichever is sooner: 2 31 a. The manufacturer, assistive device lessor, or any of 2 32 the manufacturer's authorized assistive device dealers accept 2 33 return of the new assistive device for repair at least two 2 34 times. 2 35 b. The assistive device is out of service for an aggregate 3 1 of at least thirty cumulative days because of warranty non- 3 2 conformities. 3 3 Sec. 2. NEW SECTION. 216E.2 EXPRESS WARRANTIES. 3 4 1. A manufacturer or assistive device lessor who sells or 3 5 leases an assistive device to a consumer, either directly or 3 6 through an assistive device dealer, shall furnish the consumer 3 7 with an express warranty for the assistive device. The 3 8 duration of the express warranty shall be not less than one 3 9 year after first delivery of the assistive device to the 3 10 consumer. If a manufacturer fails to furnish an express 3 11 warranty as required by this section, the assistive device 3 12 shall be covered by an express warranty as if the manufacturer 3 13 had furnished an express warranty to the consumer as required 3 14 by this section. 3 15 2. An express warranty does not take effect until the 3 16 consumer takes possession of the new assistive device. 3 17 Sec. 3. NEW SECTION. 216E.3 ASSISTIVE DEVICE REPLACEMENT 3 18 OR REFUND. 3 19 1. If an assistive device does not conform to an 3 20 applicable express warranty and the consumer reports the 3 21 nonconformity to the manufacturer, the assistive device 3 22 lessor, or any of the manufacturer's authorized assistive 3 23 device dealers, and makes the assistive device available for 3 24 repair before one year after first delivery of the device to 3 25 the consumer, a reasonable attempt to repair the nonconformity 3 26 shall be made. 3 27 2. If, after a reasonable attempt to repair, the 3 28 nonconformity is not repaired, the manufacturer shall carry 3 29 out the requirements of either paragraph "a" or "b" upon the 3 30 request of a consumer. 3 31 a. The manufacturer shall provide for a refund by doing 3 32 any one of the following: 3 33 (1) Accept return of the assistive device and refund to 3 34 the consumer and to any holder of perfected security interest 3 35 in the consumer's assistive device, as the holder's interest 4 1 may appear, the full purchase price plus any finance charge or 4 2 sales tax paid by the consumer at the point of sale and 4 3 collateral costs, including but not limited to shipping costs, 4 4 less a reasonable allowance for use. 4 5 (2) Accept return of the assistive device, refund to the 4 6 assistive device lessor and to any holder of a perfected 4 7 security interest in the assistive device, as the holder's 4 8 interest may appear, the current value of the written lease 4 9 and refund to the consumer the amount that the consumer paid 4 10 under the written lease plus any collateral costs, less a 4 11 reasonable allowance for use. The manufacturer shall have a 4 12 cause of action against the dealer or lessor for reimbursement 4 13 of any amount that the manufacturer pays to a consumer which 4 14 exceeds the net price received by the manufacturer for the 4 15 assistive device. 4 16 b. The manufacturer shall provide a comparable new 4 17 assistive device or offer a refund to the consumer if the 4 18 consumer does any one of the following: 4 19 (1) Offers to transfer possession of the assistive device 4 20 to the manufacturer. No later than thirty days after that 4 21 offer, the manufacturer shall provide the consumer with the 4 22 comparable new assistive device or a refund. When the 4 23 manufacturer provides the new assistive device or refund, the 4 24 consumer shall return the assistive device having the 4 25 nonconformity to the manufacturer, along with any endorsements 4 26 necessary to transfer legal possession to the manufacturer. 4 27 (2) Offers to transfer the assistive device having the 4 28 nonconformity to the manufacturer. No later than thirty days 4 29 after the offer, the manufacturer shall provide the refund to 4 30 the consumer. When the manufacturer provides the refund, the 4 31 consumer shall return to the manufacturer the assistive device 4 32 having the nonconformity. 4 33 (3) Offers to transfer possession of the leased assistive 4 34 device having the nonconformity to the manufacturer. No later 4 35 than thirty days after the offer, the manufacturer shall 5 1 provide the refund to the assistive device lessor. When the 5 2 manufacturer provides the refund, the assistive device lessor 5 3 shall provide to the manufacturer any endorsements necessary 5 4 to transfer legal possession to the manufacturer. 5 5 3. Under the provisions of this section, the current value 5 6 of the written lease equals the total amount for which that 5 7 lease obligates the consumer during the period of the lease 5 8 remaining after its early termination, plus the assistive 5 9 device dealer's early termination costs and the value of the 5 10 assistive device at the lease expiration date if the lease 5 11 sets forth that value, less the assistive device lessor's 5 12 early termination savings. 5 13 4. Under the provisions of this section, a reasonable 5 14 allowance for use shall not exceed the amount obtained by 5 15 multiplying the total amount for which the written lease 5 16 obligates the consumer by a fraction, the denominator of which 5 17 is one thousand eight hundred twenty-five and the numerator of 5 18 which is the number of days that the consumer used the 5 19 assistive device before first reporting the nonconformity to 5 20 the manufacturer, assistive device lessor, or assistive device 5 21 dealer. 5 22 5. A person shall not enforce the lease against the 5 23 consumer after the consumer receives a refund. 5 24 Sec. 4. NEW SECTION. 216E.4 MANUFACTURER'S DUTY TO 5 25 PROVIDE REIMBURSEMENT FOR TEMPORARY REPLACEMENT OF ASSISTIVE 5 26 DEVICES &endash; PENALTIES. 5 27 1. Whenever an assistive device covered by a 5 28 manufacturer's express warranty is tendered by a consumer to 5 29 the dealer from whom the assistive device was purchased or 5 30 exchanged for the repair of any defect, malfunction, or 5 31 nonconformity to which the warranty is applicable, the 5 32 manufacturer shall provide the consumer for the duration of 5 33 the repair period, a rental assistive device reimbursement of 5 34 up to twenty dollars per day if any of the following applies: 5 35 a. The repair period exceeds ten working days, including 6 1 the day on which the device is tendered to the manufacturer or 6 2 a dealer designated by the manufacturer for repairs. If the 6 3 dealer does not tender the assistive device to the 6 4 manufacturer in a timely enough manner for the manufacturer to 6 5 make the repairs within ten days, the manufacturer shall have 6 6 a cause of action against the dealer for reimbursement of any 6 7 penalties that the manufacturer must pay. 6 8 b. The nonconformity is the same for which the assistive 6 9 device has been tendered to the manufacturer or dealer for 6 10 repair on at least two previous occasions. 6 11 2. The provisions of this section regarding a 6 12 manufacturer's duty shall apply for the period of the 6 13 manufacturer's express warranty or for two years from delivery 6 14 of the assistive device to the customer, whichever period of 6 15 time ends sooner. 6 16 Sec. 5. NEW SECTION. 216E.5 NONCONFORMITY DISCLOSURE 6 17 REQUIREMENT. 6 18 An assistive device, or component part thereof, returned by 6 19 a consumer or assistive device lessor in this state or any 6 20 other state for nonconformity shall not be sold or leased 6 21 again in this state unless full disclosure of the reason for 6 22 return is made to any prospective buyer or lessee. 6 23 Sec. 6. NEW SECTION. 216E.6 REMEDIES. 6 24 1. This chapter shall not limit rights or remedies 6 25 available to a consumer under any other law. 6 26 2. Any waiver of rights by a consumer under the provisions 6 27 of this chapter shall be void. 6 28 3. In addition to pursuing any other remedy, a consumer 6 29 may bring an action to recover for any damages caused by a 6 30 violation of this chapter. The court shall award a consumer 6 31 who prevails in such an action, no more than three times the 6 32 amount of any pecuniary loss, together with costs and 6 33 reasonable attorney fees, and any equitable relief that the 6 34 court determines is appropriate. 6 35 EXPLANATION 7 1 This bill creates a new chapter regarding warranties for 7 2 assistive devices. The bill defines, for the purposes of this 7 3 chapter, "assistive devices", "consumer", "manufacturer", and 7 4 other terms used in the chapter concerning repair and cost. 7 5 The bill provides for a warranty on assistive devices of at 7 6 least one year. The bill further provides for the repair of a 7 7 nonconforming assistive device and provides a consumer with 7 8 the ability to obtain a refund or a replacement device if the 7 9 nonconformity is not repaired. The bill also provides that a 7 10 manufacturer must provide at least partial reimbursement for 7 11 inability to use an assistive device to a consumer if the 7 12 device is being repaired if certain conditions are met. 7 13 The bill also provides that a resale of a device returned 7 14 for a nonconformity must disclose the reason for the return to 7 15 a new consumer of the device. 7 16 The bill does not limit a consumer's right to pursue other 7 17 remedies concerning an assistive device and provides for a 7 18 civil action to obtain damages for a violation of this new 7 19 chapter. 7 20 LSB 3197YH 76 7 21 ec/jw/5.2
Text: HF02153 Text: HF02155 Text: HF02100 - HF02199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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