15 U.S.C. § 2309 — Procedures applicable to promulgation of

Page 1828 TITLE 15—COMMERCE AND TRADE § 2305 § 2305. Full and limited warranting of a con- sumer product Nothing in this chapter shall prohibit the sell- ing of a consumer product which has both full and limited warranties if such warranties are clearly and conspicuously differentiated. (Pub. L. 93–637, title I, § 105, Jan. 4, 1975, 88 Stat. 2188.) § 2306. Service contracts; rules for full, clear and conspicuous disclosure of terms and condi- tions; addition to or in lieu of written war- ranty (a) The Commission may prescribe by rule the manner and form in which the terms and condi- tions of service contracts shall be fully, clearly, and conspicuously disclosed. (b) Nothing in this chapter shall be construed to prevent a supplier or warrantor from entering into a service contract with the consumer in ad- dition to or in lieu of a written warranty if such contract fully, clearly, and conspicuously dis- closes its terms and conditions in simple and readily understood language. (Pub. L. 93–637, title I, § 106, Jan. 4, 1975, 88 Stat. 2188.) § 2307. Designation of representatives by war- rantor to perform duties under written or implied warranty Nothing in this chapter shall be construed to prevent any warrantor from designating rep- resentatives to perform duties under the written or implied warranty: Provided, That such war- rantor shall make reasonable arrangements for compensation of such designated representa- tives, but no such designation shall relieve the warrantor of his direct responsibilities to the consumer or make the representative a cowar- rantor. (Pub. L. 93–637, title I, § 107, Jan. 4, 1975, 88 Stat. 2189.) § 2308. Implied warranties (a) Restrictions on disclaimers or modifications No supplier may disclaim or modify (except as provided in subsection (b)) any implied warranty to a consumer with respect to such consumer product if (1) such supplier makes any written warranty to the consumer with respect to such consumer Product, or (2) at the time of sale, or within 90 days thereafter, such supplier enters into a service contract with the consumer which applies to such consumer product. (b) Limitation on duration For purposes of this chapter (other than sec- tion 2304(a)(2) of this title), implied warranties may be limited in duration to the duration of a written warranty of reasonable duration, if such limitation is conscionable and is set forth in clear and unmistakable language and promi- nently displayed on the face of the warranty. (c) Effectiveness of disclaimers, modifications, or limitations A disclaimer, modification, or limitation made in violation of this section shall be inef- fective for purposes of this chapter and State law. (Pub. L. 93–637, title I, § 108, Jan. 4, 1975, 88 Stat. 2189.) § 2309. Procedures applicable to promulgation of rules by Commission (a) Oral presentation Any rule prescribed under this chapter shall be prescribed in accordance with section 553 of title 5; except that the Commission shall give inter- ested persons an opportunity for oral presen- tations of data, views, and arguments, in addi- tion to written submissions. A transcript shall be kept of any oral presentation. Any such rule shall be subject to judicial review under section 57a(e) of this title in the same manner as rules prescribed under section 57a(a)(1)(B) of this title, except that section 57a(e)(3)(B) of this title shall not apply. (b) Warranties and warranty practices involved in sale of used motor vehicles The Commission shall initiate within one year after January 4, 1975, a rulemaking proceeding dealing with warranties and warranty practices in connection with the sale of used motor vehi- cles; and, to the extent necessary to supplement the protections offered the consumer by this chapter, shall prescribe rules dealing with such warranties and practices. In prescribing rules under this subsection, the Commission may ex- ercise any authority it may have under this chapter, or other law, and in addition it may re- quire disclosure that a used motor vehicle is sold without any warranty and specify the form and content of such disclosure. (Pub. L. 93–637, title I, § 109, Jan. 4, 1975, 88 Stat. 2189.) § 2310. Remedies in consumer disputes (a) Informal dispute settlement procedures; es- tablishment; rules setting forth minimum re- quirements; effect of compliance by war- rantor; review of informal procedures or im- plementation by Commission; application to existing informal procedures (1) Congress hereby declares it to be its policy to encourage warrantors to establish procedures whereby consumer disputes are fairly and expe- ditiously settled through informal dispute set- tlement mechanisms. (2) The Commission shall prescribe rules set- ting forth minimum requirements for any infor- mal dispute settlement procedure which is in- corporated into the terms of a written warranty to which any provision of this chapter applies. Such rules shall provide for participation in such procedure by independent or governmental entities. (3) One or more warrantors may establish an informal dispute settlement procedure which meets the requirements of the Commission’s rules under paragraph (2). If— (A) a warrantor establishes such a proce- dure, (B) such procedure, and its implementation, meets the requirements of such rules, and (C) he incorporates in a written warranty a requirement that the consumer resort to such