Guam § 12209 - Returns and Refunds.

§ 12209. Returns and Refunds.

(a) Service contracts shall state that the service contract holder may

return the contract within:

(1) thirty (30) days of the date that the service contract was mailed

to the service contract holder;

(2) twenty (20) days of the date the service contract was delivered

to the service contract holder, if the service contract was delivered at

the time of sale; or

(3) a longer time period as specified in the service contract.

(b) Upon return of the service contract to the service contract provider

within the applicable time period, and if no claim has been made under the

service contract prior to its return to the service contract provider, the service

contract shall be void and the service contract provider shall refund to, or

credit the account of, the service contract holder with the full purchase price

of the service contract. A ten percent (10%) penalty per month shall be

added to a refund that is not paid or credited within sixty (60) days after the

return of the service contract to the service contract provider.

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(c) The right to void a service contract under Subsection (b) shall not be

transferred and shall apply only to the original service contract purchaser

upon the terms and conditions provided in the contract and consistent with

this Article.

(d) Upon cancellation of a service contract by the service contract

provider, the service contract provider, at least five (5) days prior to

cancellation, shall mail to the service contract holder at the service contract

holder’s last known address, a written prior notice of cancellation that states

the effective date of the cancellation; provided, that prior notice under this

Subsection shall not be required if the cancellation is for:

(1) nonpayment of the service contract provider’s fee for the

service provided under the service contract;

(2) a material misrepresentation by the service contract holder to

the service contract provider; or

(3) a substantial breach of duties of the service contract holder

under the service contract, relating to a covered product or its use.