P-40.1 - Consumer Protection Act

Section 228.3 Disposition versions

2023-10-05

228.3. A merchant who proposes to a consumer to purchase a contract of additional warranty on goods or clauses of a contract regarding such a warranty must inform the consumer that he may, within 10 days after the contract has been entered into, resolve the contract or such clauses of the contract without cost or penalty.

The consumer may, at his discretion, by sending the merchant or his representative a written notice, resolve without cost or penalty a contract of additional warranty on goods or clauses of a contract regarding such a warranty within 10 days after the contract has been entered into. That time limit is however extended to one year if the merchant has failed to

(a)  indicate the duration of the warranty provided for in section 38.1, in accordance with section 38.8;

(b)  indicate the information relating to the warranty provided for in section 159 on the label that must be affixed on a used automobile under section 155;

(c)  indicate the information relating to the warranty provided for in the second paragraph of section 164 on the label that must be affixed on a used motorcycle under the first paragraph of section 164;

(d)  inform the consumer, in accordance with section 228.1; or

(e)  inform the consumer orally of the existence and duration of the warranty provided for in section 38.1, section 159 or the second paragraph of section 164, in accordance with section 228.2.

The contract of additional warranty or the clauses of a contract regarding such a warranty are resolved by operation of law from the sending of the notice to the merchant or the merchant’s representative and the merchant must, as soon as possible, return to the consumer the sum received from the consumer under that contract or those clauses.

This section does not apply to a contract for which the underwriter is an insurer authorized under the Insurers Act (chapter A-32.1).

2023, c. 21, s. 15; I.N. 2023-10-25.

The second sentence of the second paragraph will come into force on 5 October 2026. See 2023, c. 21, s. 37 (4).