A warrantor shall not indicate in any written warranty or service contract either directly or indirectly that the decision of the warrantor, service contractor, or any designated third party is final or binding in any dispute concerning the warranty or service contract. Nor shall a warrantor or service contractor state that it alone shall determine what is a defect under the agreement. Such statements are deceptive since section 110(d) of the Act, 15 U.S.C. 2310(d), gives state and federal courts jurisdiction over suits for breach of warranty and service contract.
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16 CFR 700.8 : Commercial Practices (§ 0.1 To Parts 1751-1799) — (§ 0.1 To Parts 902-999) — Federal Trade Commission (§ 0.1 To Parts 902-999) — Rules, Regulations, Statements And Interpretations Under The Magnuson-Moss Warranty Act (§ 700.1 To § 703.8) — Interpretations Of Magnuson-Moss Warranty Act (§ 700.1 To § 700.12) — Warrantor's decision as final.
4 Aug 2016