Chapter 90, Section 7N1/4 of Massachusetts General Laws requires anautomobile dealer to provide a warranty covering certain classes of usedmotor vehicles as follows:•Used Vehicleswith less than 40,000 miles at the time of sale arecovered for 90 days or 3,750 miles, whichever comes first.•Used Vehicleswith 40,000 miles or more, but less than 80,000 miles,at the time of sale are covered for 60 days or 2,500 miles, whichevercomes first.•Used Vehicleswith 80,000 miles or more, but less than 125,000 miles,at the time of sale are covered for 30 days or 1,250 miles, whichevercomes first.TheVehicle Youhave purchased may be covered by this law. If so, thefollowing is added to thisContract: In addition to the dealer warrantyrequired by this law,Youhave elected to purchase thisContract, whichmay provideYouwith additional protection during the dealer warrantyperiod and provides protection after the dealer warranty has expired.Youhave been charged separately only for thisContract. The required dealerwarranty is provided free of charge. Furthermore, the definitions,coverages, and exclusions stated in thisContractapply only to thisContractand are not the terms of the required dealer warranty.”MINNESOTA (NATL ACCT 280 MN (06/19))1.Under the section entitled “4.YOUROBLIGATIONS”, Item 1. is replacedwith the following:1.In order for thisContractto remain in force,Youmust:•Change the oil and oil filter in theVehicleat least every six (6)months or five thousand (5,000) miles, whichever comes first;•Replace the timing belt in theVehicleat least every ninety thousand(90,000) miles; and•Keep and make available to theAdministratorupon requestverifiable signed receipts that show that the above requiredmaintenance and servicing was timely performed.”2.Under the section entitled “7.EXCLUSIONS-WHATTHISCONTRACTDOESNOTCOVER”:a.Item A. 1. is replaced with the following:“1. ABreakdowncaused by lack of customary or propermaintenance.”b.Item A. 5. is replaced with the following:“5. Fraud, material misrepresentation or material omission made byYouin pursuing a claim under thisContract.”c.Item A. 17. is replaced with the following:“17. Any cost or other benefit that theVehicle Manufacturerwill payas a result of a public recall or factory service bulletin.d.Item A. 21. is deleted.e.Item B. 5. is deleted.3.Under the section entitled “9. CANCELLATION OF THIS CONTRACT -Refunds and Charges”, the first paragraph is amended to include thefollowing:“If theContractis cancelled within the first thirty (30) days,Youwill beprovided with the applicable cancellation refund within forty-five (45) daysafter theAdministratororLienholderreceivesYournotice ofcancellation; ifWefail to do so within that time,Wewill payYoua penaltyof 10 percent (10%) of the cancellation refund amount for each monththat the refund remains unpaid.”4.Under the section entitled“10. OTHER IMPORTANT CONTRACTPROVISIONS/LIMITATIONS, DISPUTERESOLUTION–1.Arbitration”is amended to include the following:“This Section is subject to the rules and regulations set forth in theMinnesota Uniform Arbitration Act, §572B.01 et. seq.”5.
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Term
Spring
Professor
CRUMPTON,JOSEPH
Tags
Arbitration, Credit Acceptance Corporation