Summary

Topic: Appliance Repair
Sponsors: Senators Schwarz, Hoffman, Bullard, Mc Manus, Goschka, Rogers, Johnson, Vaughn, and Peters
Committee: Economic Development, International Trade, and Regulatory Affairs

Senate Bill 563 would regulate the servicing, repair, and maintenance of certain appliances, such as refrigerators, dehumidifiers, freezers, ovens, ranges, microwaves, washers, dryers, dishwashers, trash compactors, and window room air conditioners. It would require a service dealer to make a written estimate that the customer must either approve by signing it , verbally approving it, or an equivalent method. If the approval is given verbally the dealer should make an effort to secure the customer's signature at a later time. A service dealer cannot charge in excess of 110% of the amount noted in the estimate. The estimate must provide the following information:

• the service dealer's name, address, and telephone number
• a description of the repair service being provided
• any charge for labor or parts must be stated separately
• must describe the method by which the labor charge is determined
• the cost of removing and returning an appliance from the customer's house, if applicable
• in the case that an appliance would require dismantling in order to diagnose a problem, the cost of this must be stated

This act does allow a dealer to combine the written estimate with the final bill. All parts removed from the appliance during service must be returned to the customer. However, a dealer may retain any part that has a core charge, exchange rate, or contains hazardous material as long as he provides the customer with a written statement upon completion of the project.

In addition to an estimate, the dealer must also supply a final bill which states separately in writing:

• the name and address of the service dealer
• the service call charges
• the labor charge
• the parts charge, regardless of whether it was new or used, and the part number and manufacturer
• the warranty provided by the supplier of the part
• labor warranty
• sales tax
• a statement saying that the customer is required to notify the service dealer in writing no later than the time period of the warranty for the part of labor
• the right of the consumer to bring an action under this act

A service dealer must provide a warranty on parts and labor of no less than 30 days. That warranty does not void, reduce, or supersede a warranty made by the manufacturer, nor does it void any provision of the service contract. Within the warranty time period, a service dealer must replace any bad parts at no cost to the customer. They must make an effort to do so within ten days of receiving the request and keep a record of the orders. After the thirty day warranty period it is the consumer's responsibility to pay for replacement parts. However, the warranty is extended the number of days that the dealer has possession of the appliance for work related to the warranty.

Finally, an individual can bring a suit as a result of violations of the act in the amount of either the actual damages or $250 (which ever is greater) plus reasonable attorney fees. They could be awarded up to twice the amount of the actual damage if the violation is proven to be willful. A person would not be prohibited from bringing an action pursuant to the Michigan Consumer Protection Act by the bill.