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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 a new 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, warranting 3 8 the operation of the assistive device without defect, unless 3 9 misused. The duration of the express warranty shall be not 3 10 less than one year after first delivery of the assistive 3 11 device to the consumer. If a manufacturer fails to furnish an 3 12 express warranty as required by this section, the assistive 3 13 device shall be covered by an express warranty as if the 3 14 manufacturer had furnished an express warranty to the consumer 3 15 as required by this section. 3 16 2. An express warranty does not take effect until the 3 17 consumer takes possession of the new assistive device. 3 18 Sec. 3. NEW SECTION. 216E.3 ASSISTIVE DEVICE REPLACEMENT 3 19 OR REFUND. 3 20 1. If an assistive device does not conform to an 3 21 applicable express warranty and the consumer reports the 3 22 nonconformity to the manufacturer, the assistive device 3 23 lessor, or any of the manufacturer's authorized assistive 3 24 device dealers, and makes the assistive device available for 3 25 repair before one year after first delivery of the device to 3 26 the consumer, a reasonable attempt to repair the nonconformity 3 27 shall be made. 3 28 2. If, after a reasonable attempt to repair, the 3 29 nonconformity is not repaired, the manufacturer shall carry 3 30 out the requirements of either paragraph "a" or "b" upon the 3 31 request of a consumer. 3 32 a. The manufacturer shall provide for a refund by doing 3 33 any one of the following: 3 34 (1) Accept return of the assistive device and refund to 3 35 the consumer and to any holder of perfected security interest 4 1 in the consumer's assistive device, as the holder's interest 4 2 may appear, the full purchase price plus any finance charge or 4 3 sales tax paid by the consumer at the point of sale and 4 4 collateral costs, including but not limited to shipping costs, 4 5 less a reasonable allowance for use. 4 6 (2) Accept return of the assistive device, refund to the 4 7 assistive device lessor and to any holder of a perfected 4 8 security interest in the assistive device, as the holder's 4 9 interest may appear, the current value of the written lease 4 10 and refund to the consumer the amount that the consumer paid 4 11 under the written lease plus any collateral costs, less a 4 12 reasonable allowance for use. The manufacturer shall have a 4 13 cause of action against the dealer or lessor for reimbursement 4 14 of any amount that the manufacturer pays to a consumer which 4 15 exceeds the net price received by the manufacturer for the 4 16 assistive device. 4 17 b. The manufacturer shall provide a comparable new 4 18 assistive device or offer a refund to the consumer if the 4 19 consumer does any one of the following: 4 20 (1) Offers to transfer possession of the assistive device 4 21 to the manufacturer. No later than thirty days after that 4 22 offer, the manufacturer shall provide the consumer with the 4 23 comparable new assistive device or a refund. When the 4 24 manufacturer provides the new assistive device or refund, the 4 25 consumer shall return the assistive device having the 4 26 nonconformity to the manufacturer, along with any endorsements 4 27 necessary to transfer legal possession to the manufacturer. 4 28 (2) Offers to return the assistive device having the 4 29 nonconformity to the manufacturer. No later than thirty days 4 30 after the offer, the manufacturer shall provide the refund to 4 31 the consumer. When the manufacturer provides the refund, the 4 32 consumer shall return to the manufacturer the assistive device 4 33 having the nonconformity. 4 34 (3) Offers to transfer possession of the assistive device 4 35 having the nonconformity to the manufacturer. No later than 5 1 thirty days after the offer, the manufacturer shall provide 5 2 the refund to the assistive device lessor. When the 5 3 manufacturer provides the refund, the assistive device lessor 5 4 shall provide to the manufacturer any endorsements necessary 5 5 to transfer legal possession to the manufacturer. 5 6 3. Under the provisions of this section, the current value 5 7 of the written lease equals the total amount for which that 5 8 lease obligates the consumer during the period of the lease 5 9 remaining after its early termination, plus the assistive 5 10 device dealer's early termination costs and the value of the 5 11 assistive device at the lease expiration date if the lease 5 12 sets forth that value, less the assistive device lessor's 5 13 early termination savings. 5 14 4. Under the provisions of this section, a reasonable 5 15 allowance for use shall not exceed the amount obtained by 5 16 multiplying the total amount for which the written lease 5 17 obligates the consumer by a fraction, the denominator of which 5 18 is one thousand eight hundred twenty-five and the numerator of 5 19 which is the number of days that the consumer used the 5 20 assistive device before first reporting the nonconformity to 5 21 the manufacturer, assistive device lessor, or assistive device 5 22 dealer. 5 23 5. A person shall not enforce the lease against the 5 24 consumer after the consumer receives a refund. 5 25 Sec. 4. NEW SECTION. 216E.4 MANUFACTURER'S DUTY TO 5 26 PROVIDE REIMBURSEMENT FOR TEMPORARY REPLACEMENT OF ASSISTIVE 5 27 DEVICES – PENALTIES. 5 28 1. Whenever an assistive device covered by a 5 29 manufacturer's express warranty is tendered by a consumer to 5 30 the dealer from whom the assistive device was purchased or 5 31 exchanged for the repair of any defect, malfunction, or 5 32 nonconformity to which the warranty is applicable, the 5 33 manufacturer shall provide the consumer for the duration of 5 34 the repair period, a rental assistive device reimbursement of 5 35 up to twenty dollars per day if any of the following applies: 6 1 a. The repair period exceeds ten working days, including 6 2 the day on which the device is tendered to the manufacturer or 6 3 a dealer designated by the manufacturer for repairs. If the 6 4 dealer does not tender the assistive device to the 6 5 manufacturer in a timely enough manner for the manufacturer to 6 6 make the repairs within ten days, the manufacturer shall have 6 7 a cause of action against the dealer for reimbursement of any 6 8 penalties that the manufacturer must pay. 6 9 b. The nonconformity is the same for which the assistive 6 10 device has been tendered to the dealer for repair on at least 6 11 two previous occasions. 6 12 2. The provisions of this section regarding a 6 13 manufacturer's duty shall apply for the period of the 6 14 manufacturer's express warranty or for two years from delivery 6 15 of the assistive device to the customer, whichever period of 6 16 time ends sooner. 6 17 Sec. 5. NEW SECTION. 216E.5 NONCONFORMITY DISCLOSURE 6 18 REQUIREMENT. 6 19 An assistive device returned by a consumer or assistive 6 20 device lessor in this state or any other state for 6 21 nonconformity shall not be sold or leased again in this state 6 22 unless full written disclosure of the reason for return is 6 23 made to any prospective buyer or lessee by the manufacturer, 6 24 assistive device dealer, or assistive device lessor. 6 25 Sec. 6. NEW SECTION. 216E.6 REMEDIES. 6 26 1. This chapter shall not limit rights or remedies 6 27 available to a consumer under any other law. 6 28 2. Any waiver of rights by a consumer under the provisions 6 29 of this chapter shall be void. 6 30 3. In addition to pursuing any other remedy, a consumer 6 31 may bring an action to recover any damages caused by a 6 32 violation of this chapter. The court shall award a consumer 6 33 who prevails in such an action, no more than three times the 6 34 amount of any pecuniary loss, together with costs and 6 35 reasonable attorney fees, and any equitable relief that the 7 1 court determines is appropriate. 7 2 Sec. 7. NEW SECTION. 216E.7 EXEMPTIONS. 7 3 This chapter does not apply to a hearing aid sold, leased, 7 4 or transferred to a consumer by an audiologist licensed under 7 5 chapter 147, or a hearing aid dealer licensed under chapter 7 6 154A, if the audiologist or dealer provides either an express 7 7 warranty for the hearing aid or provides for service and 7 8 replacement of the hearing aid. 7 9 SF 2327 7 10 ec/cc/26
Text: SF02326 Text: SF02328 Text: SF02300 - SF02399 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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