Guam § 32202 - Defective Tangible Goods Sold by a Merchant Which

§ 32202. Defective Tangible Goods Sold by a Merchant Which

Do Not Result in Death or Personal Injury.

This section does not apply in any case where personal injury

or death results from defective tangible goods or the sale of

defective tangible goods nor does it apply to goods not sold to an

aggrieved consumer by a merchant.

(a) New goods and vehicles less than five (5) years old

are defective if, within thirty (30) days of delivery, they break

or fail to operate as intended through no fault of or misuse by

the consumer. New goods and vehicles less than five (5)

years old which are found to be defective within thirty (30)

days of delivery must be corrected by the seller, and the seller

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may not rely upon any manufacturer’s warranty to escape

responsibility for correction; provided, that the merchant

may repair the goods pursuant to warranty and collect

reimbursement pursuant to the terms of the warranty. This

subsection applies only to durable goods having a reasonable

life expectancy of over thirty (30) days. Goods having a

shorter life expectancy are defective if they fail prematurely.

This subsection does not apply to sales without warranty as

described in subsection (3) of this section, below.

(b) After thirty (30) days, new goods and vehicles less

than five (5) years old shall be repaired or replaced according

to the terms of warranty, if any, unless the seller has by

advertisement, written or oral communication, indicated

some longer time for which the seller assumes responsibility.

If a warranty is not honored, the consumer may elect to treat

the goods as defective goods and proceed under this section

against both the warrantor and the seller from whom the

goods were purchased even if more than thirty (30) days have

elapsed. If used goods are sold to a consumer as new, the

court shall require repair, refund, or replacement as if the

item were new, and in addition, if the matter goes to suit, the

court shall award the consumer punitive damages of Two

Thousand Dollars ($2,000) or three (3) times the value of the

goods, whichever is greater.

(c) Nothing herein shall prohibit the sale of vehicles less

than five (5) years and goods (other than new homes) from

being sold subject to a defect, nor the sale of goods "as-is

where-is" or without warranty if the defects or lack of

warranty or selling "as-is where-is" are disclosed to the

consumer. In such case, the provisions of this section do not

apply. As to goods having a sale price in excess of Two

Thousand Dollars ($2,000), the disclosure that such goods or

vehicles are used or sold without guarantee or warranty must

be in a separate writing signed by the consumer prior to

purchase.

(d) The purchaser of new defective goods or vehicles

less than five (5) years old is entitled to have the actionable

defects in the goods adjusted at the expense of the seller for

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thirty (30) days unless some greater time is set by law or

agreement of the parties or warranty of the seller unless the

goods were sold "as-is where-is" in compliance with this

section and all provisions of law. The seller shall repair the

item, replace the item with a like item which is not defective

upon return of the original item to the seller, or have the

purchase price refunded upon return of the item to seller, less

damages done to the item by the consumer and less the fair

value of the usage of the item if used for more than thirty (30)

days, at the sole option of the seller as to whether to repair,

replace, or refund. Unless it can be proven that the seller

knowingly sold defective goods to a consumer without

knowledge of the defect, the consumer is not entitled to

damages for the consumer’s inconvenience nor for lost

profits, but is entitled to other actual damages, plus, if the

matter is brought to suit, the other relief allowed by this

chapter. Before filing suit for such defective goods, the

consumer must give a thirty (30) day written notice of the

defect, must make the goods reasonably available to the seller

for inspection, and, if the consumer took delivery of the

goods from the seller at the seller’s place of business, must

return the goods to the seller at the time of delivery of the

notice for the seller’s inspection.

(e) A consumer who is fraudulently sold used goods

which are affirmatively represented as new is entitled to a

refund of the cost of the goods, and may keep the goods as a

penalty. In such case, all warranties shall continue in full

force and effect. In the alternative, as to appliances and

vehicles, the consumer may choose to keep the goods, pay

for the goods as agreed, and the seller will be obligated to

make all necessary repairs and maintenance for the good’s

regular and normal usage for a period of five (5) years. Any

other settlement (in or out of court) between a consumer and

a seller who has sold used goods as new is voidable by the

consumer unless first approved in writing by the consumer

and either the Attorney General or any attorney representing

the consumer.

(f) This section applies only to sales or transactions by

merchants.

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