(a) In this chapter, "service contract" means an agreement:
- (1) that is entered into for a separately stated consideration and for a specified term; and
- (2) under which a provider agrees to repair, replace, or maintain a product, or provide indemnification for the repair, replacement, or maintenance of a product, for operational or structural failure caused by a defect in materials or workmanship or by normal wear.
(b) A service contract may also provide for:
- (1) incidental payment or indemnity under limited circumstances, including towing, rental, and emergency road service; or
- (2) the repair or replacement of a product for damage resulting from a power surge or for accidental damage incurred in handling the product.
Added by Acts 2001, 77th Leg., ch. 1421, Sec. 3, eff. June 1, 2003.
Acts 2021, 87th Leg., R.S., Ch. 13 (H.B. 735), Sec. 1, eff. September 1, 2021.