This section does not apply in any case where personal injury or death results from defective tangible goods or the sale of defective tangible goods nor does it apply to goods not sold to an aggrieved consumer by a merchant.

(a) New goods and vehicles less than five (5) years old are defective if, within thirty (30) days of delivery, they break or fail to operate as intended through no fault of or misuse by the consumer. New goods and vehicles less than five (5) years old which are found to be defective within thirty (30) days of delivery must be corrected by the seller, and the sellermay not rely upon any manufacturer’s warranty to escape responsibility for correction; provided, that the merchant may repair the goods pursuant to warranty and collect reimbursement pursuant to the terms of the warranty. This subsection applies only to durable goods having a reasonable life expectancy of over thirty (30) days. Goods having a shorter life expectancy are defective if they fail prematurely. This subsection does not apply to sales without warranty as described in subsection (3) of this section, below.

(b) After thirty (30) days, new goods and vehicles less than five (5) years old shall be repaired or replaced according to the terms of warranty, if any, unless the seller has by advertisement, written or oral communication, indicated some longer time for which the seller assumes responsibility. If a warranty is not honored, the consumer may elect to treat the goods as defective goods and proceed under this section against both the warrantor and the seller from whom the goods were purchased even if more than thirty (30) days have elapsed. If used goods are sold to a consumer as new, the court shall require repair, refund, or replacement as if the item were new, and in addition, if the matter goes to suit, the court shall award the consumer punitive damages of Two Thousand Dollars ($2,000) or three (3) times the value of the goods, whichever is greater.

(c) Nothing herein shall prohibit the sale of vehicles less than five (5) years and goods (other than new homes) from being sold subject to a defect, nor the sale of goods “as-is where-is” or without warranty if the defects or lack of warranty or selling “as-is where-is” are disclosed to the consumer. In such case, the provisions of this section do not apply. As to goods having a sale price in excess of Two Thousand Dollars ($2,000), the disclosure that such goods or vehicles are used or sold without guarantee or warranty must be in a separate writing signed by the consumer prior to purchase.

(d) The purchaser of new defective goods or vehicles less than five (5) years old is entitled to have the actionable defects in the goods adjusted at the expense of the seller for
thirty (30) days unless some greater time is set by law or agreement of the parties or warranty of the seller unless the goods were sold “as-is where-is” in compliance with this section and all provisions of law. The seller shall repair the item, replace the item with a like item which is not defective upon return of the original item to the seller, or have the purchase price refunded upon return of the item to seller, less damages done to the item by the consumer and less the fair value of the usage of the item if used for more than thirty (30) days, at the sole option of the seller as to whether to repair, replace, or refund. Unless it can be proven that the seller knowingly sold defective goods to a consumer without knowledge of the defect, the consumer is not entitled to damages for the consumer’s inconvenience nor for lost profits, but is entitled to other actual damages, plus, if the matter is brought to suit, the other relief allowed by this chapter. Before filing suit for such defective goods, the consumer must give a thirty (30) day written notice of the defect, must make the goods reasonably available to the seller for inspection, and, if the consumer took delivery of the goods from the seller at the seller’s place of business, must return the goods to the seller at the time of delivery of the notice for the seller’s inspection.

(e) A consumer who is fraudulently sold used goods which are affirmatively represented as new is entitled to a refund of the cost of the goods, and may keep the goods as a penalty. In such case, all warranties shall continue in full force and effect. In the alternative, as to appliances and vehicles, the consumer may choose to keep the goods, pay for the goods as agreed, and the seller will be obligated to make all necessary repairs and maintenance for the good’s regular and normal usage for a period of five (5) years. Any other settlement (in or out of court) between a consumer and a seller who has sold used goods as new is voidable by the consumer unless first approved in writing by the consumer and either the Attorney General or any attorney representing the consumer.

(f) This section applies only to sales or transactions by merchants.SOURCE: Added by P.L. 21-018:1 (May 10, 1991).

2014 NOTE: Pursuant to the authority granted by 1 Guam Code Ann. § 1606, numbers and/or letters were altered to adhere to the Compiler’s alpha-numeric scheme.