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Terms Used In Vermont Statutes Title 8 Sec. 4254

  • Consumer: means a natural person who buys other than for purposes of resale any tangible personal property that is distributed in commerce and that is normally used for personal, family, or household purposes, and not for commercial purposes. See
  • Contract: A legal written agreement that becomes binding when signed.
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Provider: means a person who issues, makes, or provides a service contract, and who is contractually obligated to provide service under a service contract and is not the manufacturer. See
  • Service contract: means any contract or agreement to perform or indemnify for a specific duration the repair, replacement, or maintenance of property for operational or structural failure due to a defect in materials, workmanship, or normal wear and tear, with or without additional provisions for incidental payment of indemnity under limited circumstances, including towing, rental, and emergency road service. See
  • State: when applied to the different parts of the United States may apply to the District of Columbia and any territory and the Commonwealth of Puerto Rico. See

§ 4254. Prohibited terms

No service contract issued, sold, or covering property located in this State shall provide:

(1) that the consumer is not a party to the contract;

(2) that the provider has no liability to the consumer;

(3) that the consumer does not have the right to bring an action to enforce the terms of the contract or otherwise challenge the denial of a claim that the consumer believes is wrongful, subject to the provisions of any alternative dispute resolution procedure authorized by contract and by law; or

(4) that any civil action brought in connection with the service contract must be brought in the courts of a jurisdiction other than Vermont. (Added 1997, No. 109 (Adj. Sess.), § 2, eff. Sept. 1, 1998.)