Sec. 1304.003. SERVICE CONTRACT. (a) In this chapter:
(1) "Identity recovery" means a process, through a limited power of attorney and the assistance of an identity recovery expert, that returns the identity of an identity theft victim to pre-identity theft event status.
(2) "Service contract" means an agreement that is entered into for a separately stated consideration and for a specified term under which a provider agrees to:
(A) repair, replace, or maintain a product, or provide indemnification for the repair, replacement, or maintenance of a product, for operational or structural failure or damage caused by a defect in materials or workmanship or by normal wear; or
(B) provide identity recovery, if the service contract is financed under Chapter 348 or 353, Finance Code.
(b) A service contract described by Subsection (a)(2)(A) may also provide for:
(1) incidental payment or indemnity under limited circumstances, including towing, rental, and emergency road service;
(2) the repair or replacement of a product for damage resulting from a power surge or for accidental damage incurred in handling the product; or
(3) identity recovery, if the service contract is financed under Chapter 348 or 353, Finance Code.
(c) For purposes of Subsection (a), normal wear for a motor vehicle may include minor and reasonable wear and tear that a vehicle sustains in everyday ordinary operation including:
(1) small dents, dings, and creases repairable by the process of paintless dent removal without affecting the existing paint finish and without replacing vehicle body panels or sanding, bonding, or painting;
(2) small windshield chips and cracks repairable without replacement of the entire windshield;
(3) worn tire tread;
(4) worn interior fabric or carpet items; and
(5) tire and wheel damage resulting from ordinary road hazards such as potholes, rocks, wood debris, metal parts, glass, plastic, or composite scraps.
(d) Subsection (c)(5) does not apply to tire damage covered under an agreement sold by a tire manufacturer.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 3, eff. June 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 1059 (H.B. 2261), Sec. 1, eff. September 1, 2007.
Acts 2009, 81st Leg., R.S., Ch. 36 (S.B. 778), Sec. 2, eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 117 (H.B. 2559), Sec. 19, eff. September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 1207 (S.B. 1388), Sec. 3, eff. September 1, 2013.
Section: Previous 1304.001 1304.002 1304.003 1304.0035 1304.004 1304.005 1304.052 1304.051 1304.101 1304.102 1304.1025 1304.103 1304.1035 1304.104 1304.105 NextLast modified: September 28, 2016