The United States Code found at 15 U.S.C. 2301 Section 2302(c) states: "No warrantor of a consumer product may condition his written or implied warranty of such product on the consumer's using, in connection with such product, any article or service (other than article or service provided without charge under the terms of the warranty) which is identified by brand, trade, or corporate name…. 15 U.S.C. 2302(c)."
This provision was supplemented by Congress on 16 C.F.R. 700.10 section 102(c). It states in pertinent part: "No warrantor may condition the continued validity of a warranty on the use of only authorized repair service and/or authorized replacement parts for non-warranty service and maintenance. For example, provisions such as, 'This warranty is void if service is performed by anyone other than an authorized "ABC" dealer and all replacement parts must be genuine "ABC" parts,' and the like, are prohibited where the service or parts are not covered by the warranty. These provisions violate the Act in two ways. First, they violate the section 102 (c) ban against tying arrangements. Second, such provisions are deceptive under section 110 of the Act, because a warrantor cannot, as a matter of law, avoid liability under a written warranty where a defect is unrelated to the use by a consumer of "unauthorized" articles or service. This does not preclude a warrantor from expressly excluding liability for defects or damage caused by such "unauthorized" articles or service; nor does it preclude the warrantor from denying liability where the warrantor can demonstrate that the defect or damage was so caused."
It is clear from the foregoing that in the United States an automobile warranty is only inapplicable if the manufacturer proves that the aftermarket part was the cause of the defect or damage of the automobile in dispute.
What about warranty? There are pieces of jurisprudence about this.
Federal law precludes a dealer from voiding warranty just because of using aftermarket speed equipment, with only two exceptions: the warranty can be voided if the aftermarket part causes damage, or adversely affects the emissions or the emissions system. SEMA (Specialty Equipment Market Association) reported that a trade association representing specialty automotive parts manufacturers, the following quotes have been extracted:
"The vehicle manufacturer is not allowed to void the vehicle warranty just because aftermarket equipment is installed on the vehicle. This protection for consumers is the result of a parts self certification program developed by the Environmental Protection Agency (EPA) and the Specialty Equipment Market Association (SEMA).
These are the surrounding facts about aftermarket parts relating to warranties. Now that you are aware, be guided accordingly.
Aftermarket Parts & Accessories
The result of its improvement and upgrading was the powerful influence that drove riders and drivers alike to purchase and use it in their bikes. However, one thing startled these purchasers. It is all about the claims against insurance companies. Another drawback though, is the spread out of phony and scrupulous companies.
Recently, a significant Illinois suit sprang. This suit is called the Avery lawsuit. It is a class suit which seeks to claim against a State Farm. Plaintiffs are suing for breach of contract and violations of the Illinois Consumer Fraud and Deceptive Business Practices Act (CFA). They claim that State Farm did not honor its insurance contract to pay for parts of "like kind and quality" to restore the insured's vehicle to "pre-loss condition". The insureds are complaining that State Farm repaired their vehicles using a substandard replacement crash parts instead of original equipment manufacture (OEM) parts and positively misrepresented the quality of these replacement parts. They allege that said deception is made in order to save money at the insureds expense.
During trial, plaintiffs presented expert testimonies to affirm that aftermarket parts have been used. Said experts testified according to the parts appearance, fit, quality, function, durability and performance. According to the plaintiffs, it was not only the quality that is unsatisfactory but the promise of State Farm to replace the non-OEM part.
Also, it was made known in the trial that State Farm recommends the use of aftermarket parts in their repair. The insurer’s adjustors use a computer system programmed to select the available and least expensive aftermarket part. It was also made known that State Farm’s employees, executives, associates and ‘special customers’ were exempted from these practice and their vehicles are repaired with OEM and not aftermarket parts.
The jury awarded almost $500,000 million to indemnify the insured class. In addition, the judge ordered State Farm to disgorge $130 million in savings realized by mandating the use of non-OEM parts and awarded plaintiffs $600 million in punitive damages.
On appeal, however, the Court reversed the award to disgorge the $130 million in savings and upheld the remainder of the decision.
This decision has its stigma. It will definitely affect the aftermarket industry. It is an influencing factor that can redound to aftermarket parts boom or downfall.
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