20-1095

20-1095. Definitions

In this article, unless the context otherwise requires:

1. "Consumer" means a buyer other than for purposes of resale of any consumer
product, any person to whom the product is transferred during the duration of an implied
or written warranty or service contract applicable to the product and any other person
who is entitled by the terms of the warranty or service contract or under applicable
federal or state law to enforce against the warrantor or service company the obligations
of the warranty or service contract. A consumer also means the buyer or seller of
residential property.

2. "Consumer product" means any tangible personal property which is distributed in
commerce and which is normally used solely for personal, family or household purposes
including any such property intended to be attached to or installed in any real property
without regard to whether it is so attached or installed.

3. "Home warranty or home protection contract" means a service contract as defined
in paragraph 8, subdivision (b) of this section.

4. "Mechanical reimbursement insurance" means an insurance policy issued to a motor
vehicle dealer to insure the performance of a motor vehicle service contract to a
consumer if the motor vehicle dealer or the service contract administrator becomes
insolvent or ceases to do business. All such policies shall provide that all purchasers
of motor vehicle service contracts are covered if the motor vehicle dealer, the service
contract administrator or the insurer becomes insolvent or ceases to do business.

5. "Motor vehicle service contract program" means contractual documents, including
service contract forms, claim forms and other forms, used in connection with the sale of
service contracts by motor vehicle dealers.

6. "Residential property" means a house, townhouse, condominium or other habitable
structure consisting of no more than four units which is used principally as a residence.

7. "Service company" means any person who performs or arranges to perform services
pursuant to a service contract which the person issues.

8. "Service contract" means a written contract for a prepaid separately stated
consideration to perform, over a fixed period of time or for a specified duration,
services relating to the maintenance or repair, including replacement, of:

(a) A consumer product.

(b) All or any part of the structural components, the appliances or the electrical,
plumbing, heating, cooling or air conditioning systems of residential property.

9. "Service contract administrator" means an entity which agrees to provide
contract forms, process claims and procure insurance for and on behalf of a motor vehicle
dealer in the performance of the obligations pursuant to the motor vehicle service
contract but which may not itself perform actual repairs.

10. "Warranty" means:

(a) Any written affirmation by a manufacturer or seller of fact or written promise
made in connection with the sale of a consumer product which relates to the nature of the
material or workmanship and affirms or promises that the material or workmanship is free
of defects or will meet a specified level of performance over a specified period of time.

(b) Any undertaking by a manufacturer or seller in writing in connection with the
sale of a consumer product to refund, repair, replace or take other remedial action with
respect to such a product if the product fails to meet the specifications set forth in
the undertaking, which written affirmation, promise or undertaking becomes part of the
basis of the bargain for purposes other than resale of such product and if there is no
separate identifiable charge to the consumer.