SENATE BILL No. 675

 

 

June 30, 2005, Introduced by Senator BISHOP and referred to the Committee on Government Operations.

 

 

 

     A bill to amend 1976 PA 331, entitled

 

"Michigan consumer protection act,"

 

by amending section 4 (MCL 445.904), as amended by 2003 PA 216.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 4. (1) This act does not apply to  either  or create a

 

cause of action for any of the following:

 

     (a) A transaction or conduct specifically authorized under

 

laws administered by a regulatory board or officer acting under

 

statutory authority of this state or the United States.

 

     (b) An act done by  the  a publisher, owner, agent, or

 

employee of a newspaper, periodical, directory, radio or television

 

station, or other communications medium in the publication or

 

dissemination of an advertisement unless the publisher, owner,

 


agent, or employee knows or, under the circumstances, reasonably

 

should know of the false, misleading, or deceptive character of the

 

advertisement or has a direct financial interest in the sale or

 

distribution of the advertised goods, property, or service.

 

     (c)  (2)  Except for the purposes of an action filed by a

 

person under section 11,  this act does not apply to or create a

 

cause of action for  an unfair, unconscionable, or deceptive

 

method, act, or practice that is made unlawful by any of the

 

following:

 

     (i)  (a)  The banking code of 1999, 1999 PA 276, MCL 487.11101

 

to 487.15105.

 

     (ii)  (b)  1939 PA 3, MCL 460.1 to 460.10cc.

 

     (iii)  (c)  The motor carrier act, 1933 PA 254, MCL 475.1 to

 

479.43.

 

     (iv)  (d)  The savings bank act, 1996 PA 354, MCL 487.3101 to

 

487.3804.

 

     (v)  (e)  The credit union act, 2003 PA 215, MCL 490.101 to

 

490.601.

 

     (d)  (3) This act does not apply to or create a cause of

 

action for an  An unfair, unconscionable, or deceptive method, act,

 

or practice that is made unlawful by chapter 20 of the insurance

 

code of 1956, 1956 PA 218, MCL 500.2001 to 500.2093.

 

     (e) A sales transaction involving a product that is alleged to

 

be defective and that was covered by an express or implied

 

warranty, or both, when the consumer filing the action purchased

 

the product unless the seller of the product expressly

 

misrepresented to the consumer filing the action a specific quality

 


or characteristic of the product. If a consumer purchased a product

 

that was covered by an express or implied warranty, or both, when

 

the consumer filing the action purchased the product and the

 

consumer is dissatisfied with the quality or performance of the

 

product, the consumer may bring an action under any applicable

 

warranty or other law.

 

     (2) A consumer that brings a cause of action under this act

 

based on an express misrepresentation described in subsection

 

(1)(e) in the sale of a defective product must plead with

 

specificity and particularity facts that, if true, would show that

 

the seller expressly misrepresented a specific quality or

 

characteristic of the product and that the consumer filing the

 

action was deceived by that misrepresentation in purchasing the

 

product. To prove a cause of action based on an express

 

misrepresentation described in subsection (1)(e) made in the sale

 

of a defective product, the consumer filing the action has the

 

burden of proving that the seller expressly misrepresented a

 

specific quality or characteristic of the product and that the

 

consumer was deceived by that misrepresentation in purchasing the

 

product.

 

     (3)  (4)  The burden of proving an exemption from this act

 

under this section is upon the person claiming the exemption.