Sec. 1. 10 MRSA §1471, sub-§2-A is enacted to read:

2-A.__Extended service warranty.__"Extended service warranty" means a service contract, not a warranty as that term is used in Title 11, Article 2, that promises service in exchange for a fee and may also be referred to as "extended service contract."

Sec. 2. 10 MRSA §1471, sub-§8, as enacted by PL 1975, c. 770, §57, is amended to read:

8. Warranty. "Warranty" shall have Except as otherwise provided in this section, "warranty" has the same meaning in this chapter as in Title 11, Article 2, and shall include includes any expression or affirmation of a dealer's willingness or ability to repair the vehicle, or make it conform to other affirmations or expressions of its qualities, communicated in any manner to a purchaser at or before the agreement to sell.

Sec. 3. 10 MRSA §1475, sub-§5 is enacted to read:

5.__Extended service warranty arbitration location.__An extended service warranty that was sold in this State for a motor vehicle registered in this State that includes a clause indicating that arbitration is required must require the location of the arbitration to be in this State.

SUMMARY

This bill requires that an extended service warranty for an automobile sold in this State must provide that the arbitration regarding the warranty must occur in the State of Maine.