Senate Study Bill 1212 



                                       SENATE FILE       
                                       BY  (PROPOSED COMMITTEE ON
                                            JUDICIARY BILL BY
                                            CHAIRPERSON KREIMAN)


    Passed Senate, Date               Passed House, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to disclosure requirements applicable to new
  2    merchandise repairs.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 2270SC 82
  5 rn/gg/14

PAG LIN



  1  1    Section 1.  Section 714.16, subsection 2, paragraph a,
  1  2 unnumbered paragraph 4, Code 2007, is amended to read as
  1  3 follows:
  1  4    "Material fact" as used in this subsection does not include
  1  5 repairs of damage to or adjustments on or replacements of
  1  6 parts with new parts of otherwise new merchandise if the
  1  7 repairs, adjustments or replacements are made to achieve
  1  8 compliance with factory specifications and are made before
  1  9 sale of the merchandise at retail and the actual cost of any
  1 10 labor and parts charged to or performed by a retailer for any
  1 11 such repairs, adjustments and parts does not exceed three
  1 12 eight hundred dollars or ten percent of the actual cost to a
  1 13 retailer including freight of the merchandise, whichever is
  1 14 less, providing that the seller posts in a conspicuous place
  1 15 notice that repairs, adjustments or replacements will be
  1 16 disclosed upon request.  The exemption provided in this
  1 17 paragraph does not apply to the concealment, suppression or
  1 18 omission of a material fact if the purchaser requests
  1 19 disclosure of any repair, adjustment or replacement.
  1 20                           EXPLANATION
  1 21    This bill relates to dollar threshold requirements above
  1 22 which a retailer shall disclose repairs, adjustments, or
  1 23 replacements of parts regarding otherwise new merchandise made
  1 24 prior to the sale of the merchandise at retail in order to
  1 25 achieve compliance with factory specifications.  Current law
  1 26 specifies that disclosure of such repairs, adjustments, or
  1 27 replacements shall not be considered a material fact requiring
  1 28 disclosure by a retailer if the actual cost of the labor and
  1 29 parts does not exceed $300, or 10 percent of the actual cost
  1 30 of the merchandise to the retailer including freight.  The
  1 31 bill changes the $300 threshold to a higher threshold of $800.
  1 32 LSB 2270SC 82
  1 33 rn:nh/gg/14