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AB-1163 Consumer warranty protection: express warranties.(2019-2020)



Current Version: 01/06/20 - Amended Assembly         Compare Versions information image


AB1163:v97#DOCUMENT

Amended  IN  Assembly  January 06, 2020
Amended  IN  Assembly  March 19, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 1163


Introduced by Assembly Member Eggman
(Coauthor: Assembly Member Cunningham)

February 21, 2019


An act to amend Section 1793.03 of the Civil Code, relating to consumer warranties.


LEGISLATIVE COUNSEL'S DIGEST


AB 1163, as amended, Eggman. Consumer warranty protection: express warranties.
Under existing law, every manufacturer making an express warranty with respect to an electronic or appliance product, including, among others, televisions, radios, audio or video recording equipment, major home appliances, antennas, and rotators, with a wholesale price to the retailer of not less than $50 nor more than $99.99 is required to make available to service and repair facilities sufficient service literature and functional parts to effect the repair of the product for at least 3 years after the date a product model or type was manufactured, regardless of whether the 3-year period exceeds the warranty period for the product. Existing law also requires every manufacturer making an express warranty with respect to an electronic or appliance product, as described above, with a wholesale price to the retailer of $100 or more, to make available to service and repair facilities sufficient service literature and functional parts to effect the repair of the product for at least 7 years after the date a product model or type was manufactured, regardless of whether the 7-year period exceeds the warranty period for the product.
This bill would instead require the manufacturer, in the above-described circumstances and timeframes, to make available sufficient service literature, at no charge, and functional parts, on fair and reasonable terms, as defined, to owners of the equipment or products, service and repair facilities, and service dealers. The bill would also expand the category of products to which these provisions apply to include certain accessories used in connection with an antenna or rotator installation or repair, computer systems, video games, and direct satellite signal receiving equipment. The bill would specify that its provisions are not to be construed to require a manufacturer to divulge a trade secret, as defined.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 1793.03 of the Civil Code is amended to read:

1793.03.
 (a) Every manufacturer making an express warranty with respect to equipment or other electronic or appliance products described in subdivision (h), (i), (j), (k), (l), (m), (n), or (o) of Section 9801 of the Business and Professions Code, with a wholesale price to the retailer of not less than fifty dollars ($50) and not more than ninety-nine dollars and ninety-nine cents ($99.99), shall make available to owners of the equipment or products, to service and repair facilities, and to service dealers, as defined in subdivision (f) of Section 9801 of the Business and Professions Code, sufficient service literature, at no charge, and functional parts, on fair and reasonable terms, to effect the repair of a product for at least three years after the date a product model or type was manufactured, regardless of whether the three-year period exceeds the warranty period for the product.
(b) Every manufacturer making an express warranty with respect to equipment or other electronic or appliance products described in subdivision (h), (i), (j), (k), (l), (m), (n), or (o) of Section 9801 of the Business and Professions Code, with a wholesale price to the retailer of one hundred dollars ($100) or more, shall make available to owners of the equipment or products, to service and repair facilities, and to service dealers, as defined in subdivision (f) of Section 9801 of the Business and Professions Code, sufficient service literature, at no charge, and functional parts, on fair and reasonable terms, to effect the repair of a product for at least seven years after the date a product model or type was manufactured, regardless of whether the seven-year period exceeds the warranty period for the product.
(c) This section shall not be construed to require a manufacturer to divulge a trade secret.

(c)

(d) For the purpose of this section, “fair purposes of this section:
(1) “Fair and reasonable terms” means that the costs and terms, including convenience of delivery, and including rights of use, are equivalent to what is offered by the original equipment or other electronic or appliance manufacturer to an authorized service dealer.
(2) “Trade secret” means anything tangible or intangible or electronically stored or kept that constitutes, represents, evidences, or records intellectual property including secret or confidentially held designs, processes, procedures, formulas, inventions or improvements, secrets of confidentially held scientific, technical, merchandising, production, financial, business, or management information, or anything within the definition of Section 1839(3) of Title 18 of the United States Code.