Text: HSB188            Text: HSB190


House Study Bill 189

HOUSE FILE BY (PROPOSED COMMITTEE ON JUDICIARY BILL BY CHAIRPERSON SWAIM) Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to disclosure requirements applicable to new 2 merchandise repairs. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2270HC 82 5 rn/gg/14 PAG LIN 1 1 Section 1. Section 714.16, subsection 2, paragraph a, 1 2 unnumbered paragraph 4, Code 2007, is amended to read as 1 3 follows: 1 4 "Material fact" as used in this subsection does not include 1 5 repairs of damage to or adjustments on or replacements of 1 6 parts with new parts of otherwise new merchandise if the 1 7 repairs, adjustments or replacements are made to achieve 1 8 compliance with factory specifications and are made before 1 9 sale of the merchandise at retail and the actual cost of any 1 10 labor and parts charged to or performed by a retailer for any 1 11 such repairs, adjustments and parts does not exceed three 1 12 eight hundred dollars or ten percent of the actual cost to a 1 13 retailer including freight of the merchandise, whichever is 1 14 less, providing that the seller posts in a conspicuous place 1 15 notice that repairs, adjustments or replacements will be 1 16 disclosed upon request. The exemption provided in this 1 17 paragraph does not apply to the concealment, suppression or 1 18 omission of a material fact if the purchaser requests 1 19 disclosure of any repair, adjustment or replacement. 1 20 EXPLANATION 1 21 This bill relates to dollar threshold requirements above 1 22 which a retailer shall disclose repairs, adjustments, or 1 23 replacements of parts regarding otherwise new merchandise made 1 24 prior to the sale of the merchandise at retail in order to 1 25 achieve compliance with factory specifications. Current law 1 26 specifies that disclosure of such repairs, adjustments, or 1 27 replacements shall not be considered a material fact requiring 1 28 disclosure by a retailer if the actual cost of the labor and 1 29 parts does not exceed $300, or 10 percent of the actual cost 1 30 of the merchandise to the retailer including freight. The 1 31 bill changes the $300 threshold to a higher threshold of $800. 1 32 LSB 2270HC 82 1 33 rn:nh/gg/14
Text: HSB188            Text: HSB190