Terms Used In Maryland Code, COMMERCIAL LAW 14-409

  • Contract: A legal written agreement that becomes binding when signed.
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Person: includes an individual, receiver, trustee, guardian, personal representative, fiduciary, representative of any kind, corporation, partnership, business trust, statutory trust, limited liability company, firm, association, or other nongovernmental entity. See
(a) Except for Title 13 of this article and § 15-311.2 of the Transportation Article with respect to mechanical repair contracts, this subtitle provides the exclusive remedy by which a person guaranteed may recover damages for a breach of a service contract or may enforce a service contract.

(b) (1) Providers, administrators, and other persons marketing, selling, or offering to enter into service contracts that comply with the terms of this subtitle need not comply with any provision of the Insurance Article, except with respect to mechanical repair contracts as expressly provided in § 15-311.2 of the Transportation Article.

(2) Guarantors, administrators, and other persons marketing, selling, or offering to issue guarantees that comply with the terms of this subtitle need not comply with any provision of the Insurance Article.

(c) (1) In this subsection, “licensee” means a person who:

(i) Is licensed as a master plumber and meets the qualifications to engage in the business of providing plumbing services under Title 12 of the Business Occupations and Professions Article;

(ii) Provides heating, ventilation, air-conditioning, or refrigeration services in accordance with a master license or a master restricted license issued under Title 9A of the Business Regulation Article; or

(iii) Is a licensed contractor under Title 8 of the Business Regulation Article.

(2) A licensee is not subject to:

(i) This subtitle if the services provided or to be provided under the service contract are within the scope of the licensee’s license; or

(ii) Any provision of the Insurance Article applicable to service contracts.