26- 239 C.M.R. ch. 105, § 5

Current through 2025-03, January 15, 2025

Section 239-105-5 - Dealer Options and the Disclosure of Manufacturer Warranties

When selling optional equipment or repair service contracts, it is prima facie evidence of an unfair trade practice for any dealer or retailer to fail to make the following disclosures prior to the customer signing a sales document:

A. Disclosures of any manufacturer express warranties that provide the same or similar protection as the optional equipment or service contract being sold by the dealer or retailer: and

B. Disclosure that Maine law provides purchasers of new cars with an implied warranty in addition to the manufacturer's express warranty. The implied warranty rights and the remedies thereunder cannot be modified or excluded.

Comment

Under this rule dealers or retailers of optional equipment or service contracts must disclose any related implied or express warranties that would already be held by the owner of a vehicle. For example, before selling a customer rustproofing protection with 5 year rustproofing warranty, a dealer or retailer must inform the customer if his vehicle already carries a 3 year manufacturer's rust protection warranty. Similarly, before selling a customer a multi-year repair service contract, a dealer or retailer must disclose to a customer the existence of the implied warranty of merchantability that is established in Maine law.

An acceptable dealer disclosure of Maine's implied warranty law would read as follows: "Maine law gives you a warranty against defects in this vehicle. This Maine warranty is in addition to the manufacturer's express warranty and cannot be limited by the dealer or manufacturer."

26- 239 C.M.R. ch. 105, § 5