- (a) The purpose of this chapter is to create a legal framework within which service contracts may be sold in this state.
(b) The following are exempt from this chapter:
- (1) warranties;
- (2) maintenance agreements;
- (3) warranties, service contracts, or maintenance agreements offered by public utilities, as defined in section 216B.02, subdivision 4, or an entity or operating unit owned by or under common control with a public utility;
- (4) service contracts sold or offered for sale to persons other than consumers;
- (5) service contracts on tangible property where the tangible property for which the service contract is sold has a purchase price of $250 or less, exclusive of sales tax;
- (6) service contracts for home security equipment installed by a licensed technology systems contractor; and
- (7) motor club membership contracts that typically provide roadside assistance services to motorists stranded for reasons that include, but are not limited to, mechanical breakdown or adverse road conditions.
- (c) The types of agreements referred to in paragraph (b) are not subject to chapters 60A to 79A, except as otherwise specifically provided by law.
- (d) Service contracts issued by motor vehicle manufacturers covering private passenger automobiles are only subject to sections 59B.03, subdivision 5, 59B.05, and 59B.07.
- (e) All warranty service contracts are deemed to be made in Minnesota for the purpose of arbitration.