Michigan Laws 257.1253 – Cancellation of sale and warranty; terms and conditions; notice
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Terms Used In Michigan Laws 257.1253
- Fraud: Intentional deception resulting in injury to another.
- Person: means an individual, partnership, corporation, limited liability company, association, or other legal entity. See Michigan Laws 257.1243
- state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o
- Vehicle protection product: means a vehicle protection device, system, or service that is installed on or applied to a vehicle and is designed to prevent loss or damage to a vehicle from a specific cause. See Michigan Laws 257.1243
- Warranted product: means a vehicle protection product covered by a written warranty. See Michigan Laws 257.1243
- warrantor: means a person that is contractually obligated to a warranty holder under the terms of a vehicle protection product warranty agreement. See Michigan Laws 257.1243
- warranty: means a written agreement by a warrantor that provides if a warranted product fails to prevent loss or damage to a vehicle from a specific cause covered by the warranty, the warrantor shall pay the warranty holder specified incidental costs that result from the failure of the warranted product to perform. See Michigan Laws 257.1243
- Warranty holder: means a person who purchases a warranted product or who is a permitted transferee. See Michigan Laws 257.1243
(1) A person shall not sell or offer for sale in this state a warranted product unless the vehicle protection product warranty clearly states any terms and conditions governing the cancellation of the sale and warranty.
(2) A warrantor may only cancel a warranty if the warranty holder does any of the following:
(a) Fails to pay for the warranted product.
(b) Makes a material misrepresentation to the seller or warrantor.
(c) Commits fraud.
(d) Substantially breaches the warranty holder’s duties under the warranty.
(3) A warrantor canceling a warranty shall mail written notice of cancellation to the warranty holder at the last address of the warranty holder in the warrantor’s records at least 30 days before the effective date of a cancellation. The notice shall state the effective date of the cancellation and the reason for the cancellation.