Bill > H258

This bill amends existing Massachusetts law regarding motor vehicle service contracts by adding new definitions for "consumer product" (any tangible personal property typically used for personal, family, or household purposes), "maintenance agreement" (a contract for regular upkeep), "motor vehicle distributor" (a person who sells or distributes new vehicles to dealers but isn't a manufacturer or dealer themselves), "motor vehicle franchisor representative" (an employee of a manufacturer or distributor who promotes sales or supervises dealers), and "motor vehicle manufacturer" (a company that makes vehicles or licenses its name for their production). It also redefines "service contract" to include agreements for repair, replacement, or maintenance of consumer products, including motor vehicles, for a stated price and duration, covering issues from defects to normal wear and tear, and specifically includes contracts for tire/wheel repair due to road hazards, paintless dent removal, windshield repair or replacement, and interior wear-and-tear damage. Furthermore, the bill prohibits motor vehicle manufacturers, distributors, or their representatives from unfairly pressuring dealers to exclusively sell extended service contracts or similar products, such as guaranteed asset protection, by using threats of negative impacts on the franchise agreement, including performance metrics, or by requiring exclusive promotion, though it allows for voluntary incentives. Finally, it exempts certain agreements from these regulations, such as those from regulated public utilities, mechanical breakdown insurance policies, agreements where a licensed dealer is obligated to perform, builder warranties, manufacturer warranties on their own products, and maintenance agreements, while clarifying that motor vehicle manufacturer service contracts must comply with these regulations unless specifically exempted from licensure.