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Terms Used In Vermont Statutes Title 8 Sec. 4251

  • 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.
  • following: when used by way of reference to a section of the law shall mean the next preceding or following section. See
  • 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
  • Service contract holder: means a person who is the purchaser or holder of a service contract. 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

§ 4251. Consumer disclosure requirements

(a) Each service contract subject to this subchapter shall be written in clear, understandable language and easily read type and disclose the following:

(1) the identity of the provider and the service contract seller;

(2) the total purchase price of the contract, stated separately from the price of the goods purchased;

(3) the existence of any deductible amount;

(4) the procedures to file a claim, including the procedures for obtaining prior approval for repair work, the toll-free telephone number if prior approval is necessary for claim service and if the service contracts provide services essential to public health, safety, or welfare, the service contract provider shall either provide for 24-hour telephone assistance or state the procedure for obtaining reimbursement for emergency repairs performed outside normal business hours;

(5) the terms for transferability of the contract;

(6) the prerequisites for early cancellation;

(7) the terms, restrictions, or conditions governing termination of the service contract by the service contract holder;

(8) the obligations and duties of the service contract holder;

(9) the authorization of the original service contract holder to return the contract within 20 days of receipt of the contract if no claim has been made under the contract and obtain a refund of the full purchase price of the contract.

(b) All service contract reimbursement insurance policies insuring service contracts issued, sold, or offered for sale in this State shall conspicuously state, that upon the failure of the provider to perform under the contract, the insurer that issued the policy shall pay on behalf of the provider any sums the provider is legally obligated to pay and shall provide the service that the provider is legally obligated to perform according to the provider’s contractual obligations under the service contracts issued or sold by the provider. (Added 1997, No. 109 (Adj. Sess.), § 2, eff. Sept. 1, 1998.)