Bill > S493

This bill amends existing Massachusetts law concerning motor vehicle service contracts by introducing new definitions for "consumer product" (tangible personal property normally used for personal, family, or household purposes), "maintenance agreement" (a contract for regular maintenance), and clarifying terms related to motor vehicle manufacturers, distributors, and franchisor representatives. It also redefines "service contract" to include agreements covering repairs for operational or structural failures due to defects or normal wear and tear, as well as specific coverage for tires, minor dent removal, windshield chips/cracks, and interior wear and tear. Furthermore, the bill prohibits motor vehicle manufacturers, distributors, or franchisor representatives from coercing dealers into exclusively selling their extended service contracts or similar products through threats of adverse impact on the franchise agreement, performance metrics, or exclusive promotion requirements, while still allowing for voluntary incentives. Finally, it outlines exemptions from these regulations, such as for public utilities, mechanical breakdown insurance, warranties from licensed dealers or builders, and manufacturer warranties, while specifying that motor vehicle manufacturer service contracts must comply with the law but are exempt from certain licensure requirements.