Bill > S536

This bill amends existing Massachusetts law regarding motor vehicle service contracts, which are agreements for a fee that cover repairs or maintenance for a consumer product, including motor vehicles, for a specific period. It introduces new definitions for terms like "consumer product" (tangible personal property typically used for personal, family, or household purposes), "maintenance agreement" (a contract for regular upkeep), and various roles within the motor vehicle industry such as "motor vehicle distributor" (a seller or distributor of new vehicles to dealers, excluding manufacturers and dealers themselves) and "motor vehicle franchisor representative" (an employee of a manufacturer or distributor who promotes sales or supervises dealers). The bill also clarifies that a "service contract" can now include agreements for tire and wheel repair due to road hazards, paintless dent removal, windshield chip repair, and interior wear-and-tear damage, but excludes full interior component replacement. Furthermore, it prohibits motor vehicle manufacturers, distributors, or their representatives from unfairly pressuring or coercing dealers to sell their extended service contracts or similar products, such as by threatening negative impacts on the dealership or basing performance evaluations on these sales, though it allows for voluntary incentives. Finally, the bill outlines exemptions from these regulations, including certain warranties and service agreements provided by public utilities, mechanical breakdown insurance, warranties from licensed dealers or builders, manufacturer warranties, and maintenance agreements, while specifying that motor vehicle manufacturer service contracts must comply with these regulations unless exempted from licensure.