[Code of Federal Regulations]
[Title 16, Volume 1]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 16CFR700.8]

[Page 530]
 
                     TITLE 16--COMMERCIAL PRACTICES
 
                   CHAPTER I--FEDERAL TRADE COMMISSION
 
PART 700--INTERPRETATIONS OF MAGNUSON-MOSS WARRANTY ACT--Table of Contents
 
Sec. 700.8  Warrantor's decision as final.

    A warrantor shall not indicate in any written warranty or service 
contract either directly or indirectly that the decision of the 
warrantor, service contractor, or any designated third party is final or 
binding in any dispute concerning the warranty or service contract. Nor 
shall a warrantor or service contractor state that it alone shall 
determine what is a defect under the agreement. Such statements are 
deceptive since section 110(d) of the Act gives state and federal courts 
jurisdiction over suits for breach of warranty and service contract.