Office of the Revisor of Statutes
Minnesota Session Laws - 1995, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 193-H.F.No. 990
An act relating to consumer protection; providing
warranties for new assistive devices; providing
enforcement procedures; proposing coding for new law
in Minnesota Statutes, chapter 325G.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. [325G.203] [DEFINITIONS.]
Subdivision 1. [TERMS.] For purposes of sections 325G.203
to 325G.208, the terms in this section have the meanings given
them.
Subd. 2. [ASSISTIVE DEVICE.] "Assistive device" is an
item, piece of equipment, or product system that is designed and
used to increase, maintain, or improve functional capabilities
of individuals with disabilities in the areas of seeing,
hearing, speaking, walking, breathing, performing manual tasks,
learning, caring for oneself, or working. The term includes,
but is not limited to: manual wheelchairs, motorized
wheelchairs, motorized scooters, and other aids that enhance the
mobility of an individual; hearing aids, assistive listening
devices, and other aids that enhance an individual's ability to
hear or communicate; voice-synthesized computer modules, optical
scanners, talking software, Braille printers, large print
materials, and other devices that enhance an individual's
ability to access print or communicate; and other assistive
devices such as environmental controls, adaptive transportation
aids, communication boards, and modified environments.
"Assistive device" does not include a transcutaneous electrical
nerve stimulator, neuromuscular electrical stimulator, or
dynamic range of motion splint, if the stimulator or splint is
already covered by a warranty.
Subd. 3. [ASSISTIVE DEVICE DEALER.] "Assistive device
dealer" means a person who is in the business of selling new
assistive devices.
Subd. 4. [ASSISTIVE DEVICE LESSOR.] "Assistive device
lessor" means a person who leases new assistive devices to
consumers, or who holds the lessor's rights, under a written
lease.
Subd. 5. [COLLATERAL COSTS.] "Collateral costs" means
expenses incurred by a consumer in connection with the repair of
a nonconformity, including the cost of sales tax and of
obtaining an alternative assistive device.
Subd. 6. [CONSUMER OR AGENCY.] "Consumer" or "agency"
means any of the following:
(1) the purchaser of an assistive device, if the assistive
device was purchased from an assistive device dealer or
manufacturer for purposes other than resale;
(2) a person to whom the assistive device is transferred
for purposes other than resale, if the transfer occurs before
the expiration of an express warranty applicable to the
assistive device;
(3) a person who may enforce the warranty; or
(4) a person who leases an assistive device from an
assistive device lessor under a written lease.
Subd. 7. [DEMONSTRATOR.] "Demonstrator" means an assistive
device used primarily for the purpose of demonstration to the
public.
Subd. 8. [EARLY TERMINATION COST.] "Early termination cost"
means an expense or obligation that an assistive device lessor
incurs as a result of both the termination of a written lease
before the termination date set forth in that lease and the
return of an assistive device to the manufacturer. The term
includes a penalty for prepayment under a finance arrangement.
Subd. 9. [EARLY TERMINATION SAVINGS.] "Early termination
savings" means an expense or obligation that an assistive device
lessor avoids as a result of both the termination of a written
lease before the termination date set forth in that lease and
the return of an assistive device to a manufacturer. The term
includes an interest charge that the assistive device lessor
would have paid to finance the assistive device or, if the
assistive device lessor does not finance the assistive device,
the difference between the total period of the lease term
remaining after the early termination and the present value of
that amount at the date of the early termination.
Subd. 10. [MANUFACTURER.] "Manufacturer" means a person
who manufactures or assembles assistive devices and agents of
that person, including an importer, a distributor, a factory
branch, distributor branch, and a warrantor of the
manufacturer's assistive device. The term does not include an
assistive device dealer or lessor.
Subd. 11. [NONCONFORMITY.] "Nonconformity" means a
specific condition or generic defect or malfunction, or a defect
or condition that substantially impairs the use, value, or
safety of an assistive device, but does not include a condition
or defect that is the result of abuse or unauthorized
modification or alteration of the assistive device by the
consumer.
Subd. 12. [REASONABLE ATTEMPT TO REPAIR.] "Reasonable
attempt to repair" means any of the following occurring within
the term of an express warranty applicable to a new assistive
device:
(1) the manufacturer, assistive device lessor, or any of
the manufacturer's authorized assistive device dealers accepts
return of the new assistive device for repair at least two
times; or
(2) the assistive device is out of service for an aggregate
of at least 30 cumulative days because of warranty
nonconformities.
Sec. 2. [325G.204] [EXPRESS WARRANTIES.]
Subdivision 1. [REQUIREMENT.] A manufacturer who sells or
leases a new assistive device to a consumer, either directly or
through an assistive device dealer or lessor, shall furnish the
consumer with an express warranty to preserve or maintain the
utility or performance of the assistive device. The duration of
the express warranty must not be less than one year after first
possession of the assistive device by the consumer. If a
manufacturer fails to furnish an express warranty as required by
this section, the assistive device shall be covered by an
express warranty as if the manufacturer had furnished an express
warranty to the consumer as required by this section.
Subd. 2. [NONCONFORMING DEVICE.] If a new assistive device
does not conform to an applicable express warranty and the
consumer reports the nonconformity to the manufacturer, the
assistive device lessor, or any of the manufacturer's authorized
assistive device dealers and makes the assistive device
available for repair before one year after first possession of
the device by the consumer, the nonconformity must be repaired
or replaced.
Sec. 3. [325G.205] [ASSISTIVE DEVICE REPLACEMENT OR
REFUND.]
Subdivision 1. [REQUIREMENT.] If, after a reasonable
attempt to repair, the nonconformity is not repaired, the
manufacturer shall carry out, at the option of the consumer, the
requirements under paragraph (a) or (b), whichever is
appropriate.
(a) To provide for refunds, at the request of the consumer,
the manufacturer shall do one of the following:
(1) accept return of the assistive device and refund to the
consumer and to a holder of a perfected security interest in the
consumer's assistive device, as their interest may appear, the
full purchase price plus any finance charge, amount paid by the
consumer at the point of sale and collateral costs, less a
reasonable allowance for use; or
(2) accept return of the assistive device, refund to the
assistive device lessor and to a holder of a perfected security
interest in the assistive device, as their interest may appear,
the current value of the written lease and refund to the
consumer the amount that the consumer paid under the written
lease plus collateral costs, less a reasonable allowance for use.
(b) To receive a comparable new assistive device, a
consumer shall offer to the manufacturer of the assistive device
having the nonconformity to transfer possession of that
assistive device to that manufacturer. No later than 30 days
after that offer, the manufacturer shall provide the consumer
with the comparable new assistive device or a refund. When the
manufacturer provides the new assistive device or refund, the
consumer shall return the assistive device having the
nonconformity to the manufacturer, along with any endorsements
necessary to transfer real possession to the manufacturer.
Subd. 2. [REFUND.] If, after a reasonable attempt to
repair, the nonconformity is not repaired, an assistive device
lessor shall receive a refund from the manufacturer. To receive
a refund, the assistive device lessor shall offer to transfer
possession of a nonconforming assistive device to its
manufacturer. No later than 30 days after that offer, the
manufacturer shall provide the refund to the assistive device
lessor. When the manufacturer provides the refund, the
assistive device lessor shall provide to the manufacturer any
endorsements necessary to transfer legal possession to the
manufacturer.
Subd. 3. [CURRENT VALUE OF LEASE.] Under this section, the
current value of the written lease equals the total amount for
which that lease obligates the consumer during the period of the
lease remaining after its early termination, plus the assistive
device dealer's early termination costs and the value of the
assistive device at the lease expiration date if the lease sets
forth that value, less the assistive device lessor's early
termination savings.
Subd. 4. [REASONABLE ALLOWANCE.] Under this section, a
reasonable allowance for use may not exceed the amount obtained
by multiplying the total amount the consumer paid or for which
the written lease obligates the consumer by a fraction, the
denominator of which is 1,825 and the numerator of which is the
number of days that the consumer used the assistive device
before first reporting the nonconformity to the manufacturer,
assistive device lessor, or assistive device dealer.
Subd. 5. [LIMIT ON ENFORCEMENT OF LEASE.] No person may
enforce the lease against the consumer after the consumer
receives a refund.
Sec. 4. [325G.206] [NONCONFORMITY DISCLOSURE REQUIREMENT.]
No assistive device returned by a consumer or assistive
device lessor in this state or another state may be sold or
leased in this state unless full disclosure of the reason for
return is made to a prospective buyer or lessee.
Sec. 5. [325G.207] [OTHER REMEDIES.]
Subdivision 1. [OTHER RIGHTS AND REMEDIES AVAILABLE.]
Sections 325G.203 to 325G.208 do not limit rights or remedies
available under any other law.
Subd. 2. [WAIVER OF RIGHTS VOID.] A waiver of rights by a
consumer under sections 325G.203 to 325G.208 is void.
Subd. 3. [PRIVATE RIGHT OF ACTION.] In addition to
pursuing other remedies, a consumer may bring an action to
recover damages caused by a violation of sections 325G.203 to
325G.208. The court shall award a consumer who prevails in the
action, twice the amount of any pecuniary loss, together with
costs, disbursements, and reasonable attorney fees, and any
equitable relief that the court may determine is appropriate.
Sec. 6. [325G.208] [MANUFACTURER'S DUTY TO PROVIDE
REIMBURSEMENT FOR TEMPORARY REPLACEMENT OF ASSISTIVE DEVICES;
PENALTIES.]
Subdivision 1. [REQUIREMENT.] Whenever an assistive device
covered by a manufacturer's express warranty is tendered by a
consumer to the dealer from whom it was purchased or exchanged
for the repair of a defect, malfunction, or nonconformity to
which the warranty is applicable and at least one of the
following conditions exists, the manufacturer shall provide
directly to the consumer for the duration of the repair period,
a replacement assistive device or a rental assistive device
reimbursement to pay for the cost incurred by the consumer for
renting a replacement assistive device. The applicable
conditions are as follows:
(1) the repair period exceeds ten working days, including
the day on which the device is tendered to the dealer for
repair; or
(2) the defect, malfunction, or nonconformity is the same
for which the assistive device has been tendered to the dealer
for repair on at least two previous occasions.
Subd. 2. [DURATION OF DUTY.] This section applies for the
period of the manufacturer's express warranty.
Presented to the governor May 17, 1995
Signed by the governor May 19, 1995, 2:34 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes