reglab/statecodes huggingface dataset:
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 332 of 1965 - Home Improvement Finance Act (445.1101 - 445.1431) › 332-1965-2 - Part 2 (445.1201...445.1209) › Section 445.1206 - Home Improvement Installment Contract and Home Improvement Charge Agreement; Prohibited Provisions.

445.1206 Home improvement installment contract and home improvement charge agreement; prohibited provisions.
Sec. 206.
(1) A home improvement installment contract or home improvement charge agreement shall not contain any provision by which:
(a) The buyer agrees not to assert against a contractor a claim or defense arising out of the home improvement installment sale or a home improvement charge sale or agrees not to assert against an assignee such a claim or defense.
(b) In the absence of the buyer's default in the performance of any of the buyer's obligations, the holder may, arbitrarily and without reasonable cause, accelerate the maturity of any or all of the amount owing thereunder.
(c) The buyer waives any right of action against the contractor or holder, or a person acting on his or her behalf, for any illegal act committed in the collection of payments under the contract or agreement.
(d) The buyer relieves the contractor from liability for any legal remedies which the buyer may have against the contractor under the contract or agreement or any separate instrument executed in connection with the contract or agreement.
(e) The contractor, or holder, or a person acting on his or her behalf, is authorized to enter upon the premises of the buyer unlawfully, or is authorized to commit any breach of the peace in connection with any repossession or other entry upon the premises of the buyer.
(f) The contractor is entitled to liquidated damages for any cancellation, rescission, or failure or refusal to accept delivery of the goods or performance of the services covered in the contract or provided pursuant to the agreement.
(2) Any provision prohibited under subsection (1) is void but shall not otherwise affect the validity of the contract or agreement.
History:
1965, Act 332, Eff. Jan. 1, 1966 ;-- Am. 1985, Act 202, Imd. Eff. Dec. 27, 1985
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 332 of 1965 - Home Improvement Finance Act (445.1101 - 445.1431) › 332-1965-2 - Part 2 (445.1201...445.1209) › Section 445.1207 - Evidence of Obligation; Holder Subject to Claims and Defenses of Buyer; Limitation on Buyer's Recovery.

445.1207 Evidence of obligation; holder subject to claims and defenses of buyer; limitation on buyer's recovery.
Sec. 207.
Notwithstanding the provisions of any other law and notwithstanding any agreement to the contrary:
(a) A person shall not take a negotiable instrument, other than a currently dated check or draft, as evidence of the obligation of the buyer in a home improvement installment sale or home improvement charge sale.
(b) A holder of a home improvement contract, home improvement charge agreement, or other evidence of indebtedness of the buyer is subject to all the claims and defenses of the buyer arising out of the home improvement installment sale or a home improvement charge sale, but the buyer's recovery shall not exceed the amount paid to the holder thereunder.
History:
1965, Act 332, Eff. Jan. 1, 1966 ;-- Am. 1972, Act 193, Eff. Jan. 1, 1973 ;-- Am. 1980, Act 78, Imd. Eff. Apr. 3, 1980 ;-- Am. 1985, Act 202, Imd. Eff. Dec. 27, 1985
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 332 of 1965 - Home Improvement Finance Act (445.1101 - 445.1431) › 332-1965-2 - Part 2 (445.1201...445.1209) › Section 445.1208 - Repealed. 1972, Act 193, Eff. Jan. 1, 1973.

445.1208 Repealed. 1972, Act 193, Eff. Jan. 1, 1973.
Compiler's Notes:
The repealed section pertained to assignments of home improvement installment contracts.
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 332 of 1965 - Home Improvement Finance Act (445.1101 - 445.1431) › 332-1965-2 - Part 2 (445.1201...445.1209) › Section 445.1209 - Home Improvement Installment Contract; Provisions as to Delinquency and Collection Charges, Court Costs and Attorney Fees.

445.1209 Home improvement installment contract; provisions as to delinquency and collection charges, court costs and attorney fees.
Sec. 209.
A home improvement installment contract may provide for the payment by the buyer of a delinquency and collection charge on each installment in default for a period of not less than 10 days in an amount not in excess of 5% of such installment or $5.00, whichever is less. Only 1 such delinquency and collection charge may be collected on any such installment regardless of the period during which it remains in default. A contract may also provide for the payment of court costs actually incurred and of attorney's fees not exceeding 20% of the amount due and payable under such contract if the attorney is not a salaried employee of the contractor or holder for collection.
History:
1965, Act 332, Eff. Jan. 1, 1966
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 332 of 1965 - Home Improvement Finance Act (445.1101 - 445.1431) › 332-1965-3 - Part 3 (445.1301...445.1309) › Section 445.1302 - Division of Transaction Prohibited.

445.1302 Division of transaction prohibited.
Sec. 302.
A contractor shall not induce or permit a buyer to split up or divide any transaction that otherwise would be a home improvement installment sale or home improvement charge sale for the purpose of qualifying for any exclusion under section 102(j), (l), or (m).
History:
1965, Act 332, Eff. Jan. 1, 1966 ;-- Am. 1985, Act 202, Imd. Eff. Dec. 27, 1985
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 332 of 1965 - Home Improvement Finance Act (445.1101 - 445.1431) › 332-1965-3 - Part 3 (445.1301...445.1309) › Section 445.1303 - Payment of Contract in Full Before Maturity; Refund Credit.

445.1303 Payment of contract in full before maturity; refund credit.
Sec. 303.
(1) Notwithstanding the provisions of a home improvement installment contract to the contrary, a buyer may pay the contract in full at any time before maturity and in so paying shall receive a refund credit on the contract, except as provided in section 309. Except as provided in subsection (2), the amount of the refund credit shall represent at least as great a proportion of the finance charge, or if the contract has been extended, deferred, or refinanced, of the additional charge therefor, as the sum of the periodical time balance scheduled by the contract to follow the installment date after the day of prepayment bears to the sum of all the periodical time balances under the schedule of installments in the contract or, if the contract has been extended, deferred, or refinanced, as so extended, deferred, or refinanced.
(2) If a part of the finance charge is computed on an installment as provided in section 301(3), the amount of the refund credit applicable to that part of the finance charge shall represent at least as great a proportion of that part of the finance charge as the number of months to elapse after the month in which prepayment is made to the due date of that installment bears to the number of months from the date the finance charge accrues to the due date of that installment.
(3) Where the amount of the credit for anticipation of payment is less than $1.00, a refund need not be made. Where the earned finance charge amounts to less than the minimum finance charge, there may be retained an amount equal to the minimum finance charge under section 301.
History:
1965, Act 332, Eff. Jan. 1, 1966 ;-- Am. 1978, Act 96, Imd. Eff. Apr. 5, 1978
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 332 of 1965 - Home Improvement Finance Act (445.1101 - 445.1431) › 332-1965-3 - Part 3 (445.1301...445.1309) › Section 445.1304 - Scheduled Payments; Extension of Due Date; Deferral Charge.

445.1304 Scheduled payments; extension of due date; deferral charge.
Sec. 304.
The holder of a home improvement installment contract, upon agreement in writing with the buyer, may extend the scheduled due date or defer the scheduled payment of all or of any part of any installment or installments payable thereunder. The holder may charge and contract for the payment of an extension or deferral charge by the buyer and collect and receive the same, but such charge may not exceed an amount equal to 1% per month simple interest on the amount of the installment or installments, or part thereof, extended or deferred for the period of extension or deferral. Such period shall not exceed the period from the date when such extended or deferred installment, or part thereof, would have been payable in the absence of such extension or deferral, to the date when such installment or installments, or part thereof, are made payable under the agreement of extension or deferment; except that a minimum charge of $1.00 for the period of extension or deferral may be made in any case where the extension or deferral charge, when computed at such rate, amounts to less than $1.00. The agreement may also provide for payment by the buyer of the additional cost to the holder of the contract of premiums for continuing in force, until the end of such period of extension or deferral, any insurance coverages provided for in the contract.
History:
1965, Act 332, Eff. Jan. 1, 1966
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 332 of 1965 - Home Improvement Finance Act (445.1101 - 445.1431) › 332-1965-3 - Part 3 (445.1301...445.1309) › Section 445.1305 - Refinancing Payment of Unpaid Balance; Refinance Charge, Computation; Refinancing Agreement, Consolidation of Contracts.

445.1305 Refinancing payment of unpaid balance; refinance charge, computation; refinancing agreement, consolidation of contracts.
Sec. 305.
The holder of a home improvement installment contract, upon agreement in writing with the buyer, may refinance the payment of the unpaid time balance of the contract by providing for a new schedule of installment payments. The holder may charge and contract for the payment of a refinanced charge by the buyer and collect and receive the same, but such refinance charge shall be based upon the amount refinanced, plus any additional cost of insurance and of official fees incident to such refinancing, after the deduction of a refund credit in an amount equal to that to which the buyer would have been entitled under section 303 if he had prepaid in full his obligations under the contract or contracts, computed without allowance for any minimum earned finance charge. Such refinance charge shall not exceed the rate of finance charge provided under section 301. The agreement for refinancing may also provide for the payment by the buyer of the additional cost to the holder of the contract of premiums for continuing in force, until the maturity of the contract as refinanced, any insurance coverages provided therein. The refinancing agreement shall set forth the amount of the unpaid time balance to be refinanced, the amount of any refund credit, the amount to be refinanced after the deduction of the refund credit, any additional premiums paid for insurance and of official fees to the buyer, the amount of the finance charge under the refinancing agreement, the new unpaid time balance and the new schedule of installment payments. A refinancing agreement between a financing agency and a buyer may consolidate the new unpaid time balances of 2 or more home improvement installment contracts by providing for a new schedule of consolidated installment payments, and may provide for the acceleration of the consolidated time balance upon a failure of the buyer to pay in full any consolidated installment payment. A contractor may not consolidate 2 or more home improvement installment contracts except to the extent provided in sections 306, 307 and 308.
History:
1965, Act 332, Eff. Jan. 1, 1966
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 332 of 1965 - Home Improvement Finance Act (445.1101 - 445.1431) › 332-1965-3 - Part 3 (445.1301...445.1309) › Section 445.1306 - Add-on Sales; Optional Contract Provisions; Finance Charges, Insurance.

445.1306 Add-on sales; optional contract provisions; finance charges, insurance.
Sec. 306.
A home improvement installment contract may provide that the contractor may at his option add to the contract subsequent home improvement installment sales made by such contractor to the buyer, and that the total time balance of the goods and services covered by the contract shall be increased by the principal amount financed under the subsequent sale or sales, and that all finance charges and installment payments may, at the contractor's option, be increased proportionately and that all terms and conditions of the contract shall apply equally to such sale or sales. In addition, the contract may provide for the payment by the buyer of the additional cost of premiums for continuing in force, until the due date of the final installment of the consolidated time balance, any insurance coverages provided for therein. The minimum finance charge as provided in section 301 may be used but once in any series of add-on home improvement installment sales.
History:
1965, Act 332, Eff. Jan. 1, 1966
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 332 of 1965 - Home Improvement Finance Act (445.1101 - 445.1431) › 332-1965-3 - Part 3 (445.1301...445.1309) › Section 445.1307 - Finance Charge; Computation, Maximum Sale.

445.1307 Finance charge; computation, maximum sale.
Sec. 307.
Subject to the provisions of section 301, the finance charge to be included in a consolidated time balance shall be determined by applying a finance charge at a rate not exceeding the maximum rate specified in that section to either:
(a) The total of the principal amount financed under the subsequent sale and the unpaid balance of any previous contract determined by deducting from the unpaid time balance thereof as of the date the finance charge is to accrue on the subsequent sale, any then unearned finance charge in an amount not less than the refund credit provided for in section 303 computed without the allowance of any minimum earned finance charge, for the period from the date the finance charge is to accrue on the subsequent sale to and including the date when the final installment of such consolidated time balance is payable; or
(b) The principal amount financed under the subsequent sale for the period from the date the finance charge is to accrue thereon to and including the date when the final installment of such consolidated time balance is payable and, if the due date of the final installment of such consolidated time balance is later than the due date of the final installment of any previous contract included in the consolidated time balance, on the unpaid time balance of such previous contract as of the date the finance charge is to accrue on the subsequent sale for the period from the date when the final installment on the previous contract would have been payable to the date when the final installment of such consolidated time balance is payable.
History:
1965, Act 332, Eff. Jan. 1, 1966
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 332 of 1965 - Home Improvement Finance Act (445.1101 - 445.1431) › 332-1965-3 - Part 3 (445.1301...445.1309) › Section 445.1309 - Optional Method of Computing Finance Charge.

445.1309 Optional method of computing finance charge.
Sec. 309.
Instead of a finance charge computed on the principal amount financed as determined under section 203 or 308, the seller may charge from time to time a finance charge consisting of interest on the amount of the unpaid principal balance of the contract. In this event, the transaction shall be subject to this act as modified by the following provisions:
(a) Finance charge shall mean the estimated amount of consideration in excess of the cash price which the buyer will pay in the form of interest assuming that each scheduled payment is made on the date it is due and in the scheduled amount.
(b) The maximum estimated finance charge shall not exceed the maximum dollar amount allowed pursuant to section 301 for contracts of the same contractual maturity computed on the actual number of days between installment payments.
(c) The number and amount of installment payments required to be stated pursuant to sections 203 and 308 shall be estimated for purposes of this section assuming that each scheduled payment is made on the date it is due and in the scheduled amount.
(d) The holder of the contract shall have the option of deferring interest charges which accrue due to installment payments being received later than the periodic installment due date. The deferred interest charge shall be computed on the basis of additional interest charges accruing for late installment payments and appropriate interest reductions for installment payments made before the due date. On contracts providing for equal monthly installments, if the final installment is more than 105% of a previous installment as a result of the deferred interest charges, the installment buyer shall be given the option to pay the deferred interest charges not less than 25 days after the date the last installment payment is due.
(e) If the entire principal balance is prepaid in full, together with all interest incurred to the date of prepayment, the balance of the original finance charge shall be canceled and the provisions of section 303 respecting a refund credit shall not be applicable.
History:
Add. 1978, Act 96, Imd. Eff. Apr. 5, 1978
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 332 of 1965 - Home Improvement Finance Act (445.1101 - 445.1431) › 332-1965-4 - Part 4 (445.1401...445.1431) › Section 445.1401 - Notice of Assignment of Contract or Agreement.

445.1401 Notice of assignment of contract or agreement.
Sec. 401.
Unless the buyer has notice of the actual or intended assignment of a home improvement installment contract or home improvement charge agreement, payment under the contract or agreement by the buyer to the last known holder of the contract or agreement is binding upon all subsequent holders or assignees.
History:
1965, Act 332, Eff. Jan. 1, 1966 ;-- Am. 1985, Act 202, Imd. Eff. Dec. 27, 1985
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 332 of 1965 - Home Improvement Finance Act (445.1101 - 445.1431) › 332-1965-4 - Part 4 (445.1401...445.1431) › Section 445.1402 - Statement of Payments; Furnished by Holder, Fee.

445.1402 Statement of payments; furnished by holder, fee.
Sec. 402.
At any time after its execution, but not later than 1 year after the last payment thereunder, the holder of a home improvement installment contract, upon written request of the buyer, shall give or forward to the buyer a written statement of the dates and amounts of payments and the total amount, if any, unpaid thereunder. The statement shall be supplied by the holder once each year without charge; if any additional statement is requested by the buyer, the holder shall supply each statement to the buyer at a charge not exceeding $1.00 for each additional statement supplied to the buyer. A buyer shall be given a receipt for any payment when made in cash.
History:
1965, Act 332, Eff. Jan. 1, 1966
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 332 of 1965 - Home Improvement Finance Act (445.1101 - 445.1431) › 332-1965-4 - Part 4 (445.1401...445.1431) › Section 445.1403 - Payment in Full; Acknowledgment, Release of Collateral.

445.1403 Payment in full; acknowledgment, release of collateral.
Sec. 403.
After the payment of all sums for which the buyer is obligated under a home improvement installment contract and upon demand made by the buyer, the holder shall deliver, or mail to the buyer at his last known address, such 1 or more good and sufficient instruments as may be necessary to acknowledge payment in full and to release all collateral.
History:
1965, Act 332, Eff. Jan. 1, 1966
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 332 of 1965 - Home Improvement Finance Act (445.1101 - 445.1431) › 332-1965-4 - Part 4 (445.1401...445.1431) › Section 445.1404 - Compensation or Reward for Procurement of Contract or Agreement Prohibited; Giving Tangible Items for Advertising or Sales Promotion Purposes.

445.1404 Compensation or reward for procurement of contract or agreement prohibited; giving tangible items for advertising or sales promotion purposes.
Sec. 404.
(1) As part of or in connection with the inducement to make a home improvement installment contract or home improvement charge agreement, a person shall not promise or offer to pay, credit, or allow to a buyer any compensation or reward for the procurement of a home improvement installment contract or home improvement charge agreement with others.
(2) A person shall not offer, deliver, pay, credit, or allow to the buyer any gift, bonus, award, merchandise, or cash loan as an inducement to enter into a home improvement installment contract or to make a purchase under a home improvement charge agreement.
(3) A contractor or financing agency may give tangible items to prospective buyers for advertising or sales promotion purposes where the gift is not conditioned upon obtaining a home improvement installment contract or making a purchase under a home improvement charge agreement, but such item shall not have a cost value in excess of $2.50 and a buyer or other person shall not receive more than 1 such item in connection with any 1 sale.
History:
1965, Act 332, Eff. Jan. 1, 1966 ;-- Am. 1985, Act 202, Imd. Eff. Dec. 27, 1985
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 332 of 1965 - Home Improvement Finance Act (445.1101 - 445.1431) › 332-1965-4 - Part 4 (445.1401...445.1431) › Section 445.1405 - Criminal Violation of Act by Personnel Deemed Violation by Contractor; Exception.

445.1405 Criminal violation of act by personnel deemed violation by contractor; exception.
Sec. 405.
A criminal violation of any of the provisions of this act by a director, manager, partner, officer, salesman, agent or employee of a contractor or financing agency is deemed a criminal violation by such contractor or financing agency, unless it shall appear that the individuals engaged in the management of the contractor or financing agency had no actual or constructive knowledge of the wrongful conduct or was reasonably unable to prevent the violation.
History:
1965, Act 332, Eff. Jan. 1, 1966
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 332 of 1965 - Home Improvement Finance Act (445.1101 - 445.1431) › 332-1965-4 - Part 4 (445.1401...445.1431) › Section 445.1406 - Unauthorized Charges.

445.1406 Unauthorized charges.
Sec. 406.
A person shall not charge, collect, or receive from a buyer, directly or indirectly, any further or other amount for costs, credit investigation charges, insurance premiums, examination, appraisal, service, brokerage, commission, interest, discount, expense, fee, fine, penalty, or other thing of value in connection with a home improvement installment contract, home improvement charge agreement, or home improvement charge sale, other than the charges authorized by this act. Any such unauthorized charge shall be unenforceable. Any payment of an unauthorized charge shall be applied to the next maturing installment, or, if a contract has been fully paid or a balance is not owing under an agreement, shall be remitted to the buyer and the buyer shall be entitled to recover all such unauthorized charges.
History:
1965, Act 332, Eff. Jan. 1, 1966 ;-- Am. 1985, Act 202, Imd. Eff. Dec. 27, 1985
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 332 of 1965 - Home Improvement Finance Act (445.1101 - 445.1431) › 332-1965-4 - Part 4 (445.1401...445.1431) › Section 445.1407 - Cash Loans.

445.1407 Cash loans.
Sec. 407.
A cash loan shall not directly or indirectly be included in or combined or consolidated with any home improvement installment contract, home improvement charge sale, or home improvement charge agreement, or with any extension, deferment, refinancing, add-on, or consolidation agreement pertaining thereto.
History:
1965, Act 332, Eff. Jan. 1, 1966 ;-- Am. 1985, Act 202, Imd. Eff. Dec. 27, 1985
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 332 of 1965 - Home Improvement Finance Act (445.1101 - 445.1431) › 332-1965-4 - Part 4 (445.1401...445.1431) › Section 445.1409 - Waiver.

445.1409 Waiver.
Sec. 409.
No act, agreement, or statement of a buyer under a home improvement installment contract or home improvement charge agreement constitutes a valid waiver of any provision of this act intended for the benefit or protection of the buyer.
History:
1965, Act 332, Eff. Jan. 1, 1966 ;-- Am. 1985, Act 202, Imd. Eff. Dec. 27, 1985
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 332 of 1965 - Home Improvement Finance Act (445.1101 - 445.1431) › 332-1965-4 - Part 4 (445.1401...445.1431) › Section 445.1410 - Effect of Act as to Prior Contracts.

445.1410 Effect of act as to prior contracts.
Sec. 410.
This act does not apply to or affect the validity of a home improvement installment contract otherwise within the purview of this act, which is made prior to the effective date of the respective provisions of this act governing such contracts.
History:
1965, Act 332, Eff. Jan. 1, 1966
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 332 of 1965 - Home Improvement Finance Act (445.1101 - 445.1431) › 332-1965-4 - Part 4 (445.1401...445.1431) › Section 445.1421 - Violation of Act; Misdemeanor, Penalty.

445.1421 Violation of act; misdemeanor, penalty.
Sec. 421.
Any person who wilfully violates any provision of this act or directs or consents to such violation, is guilty of a misdemeanor and, upon conviction thereof, may be punished by imprisonment in the county jail for a period not to exceed 90 days and may be fined not more than $500 or both for the first offense; and for each subsequent offense a like fine or imprisoned not to exceed 1 year, or both. Violation of any order, decree or injunction issued pursuant to the provisions of this act shall constitute prima facie proof of a violation of this section.
History:
1965, Act 332, Eff. Jan. 1, 1966
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 332 of 1965 - Home Improvement Finance Act (445.1101 - 445.1431) › 332-1965-4 - Part 4 (445.1401...445.1431) › Section 445.1422 - Violation of Act; Injunction; Violation of Injunction, Civil Penalty.

445.1422 Violation of act; injunction; violation of injunction, civil penalty.
Sec. 422.
(1) The attorney general or the prosecuting attorney of any county may bring an action in the name of the state to restrain or prevent any violation of this act or any continuance of any such violation. Such action, in the case of the attorney general, shall be brought in the circuit court of Ingham county, upon which jurisdiction thereof is conferred, and, in the case of the prosecuting attorney, in the county where the defendant resides, has his principal place of business, or where the act sought to be restrained has been, or is about to be, performed.
(2) A person who violates any order or decree entered, or injunction issued, pursuant to subsection (1) is liable to a civil penalty of not more than $1,000.00, in the discretion of the court, to be recovered as judgments are now by law recovered. For the purpose of this section, the circuit court entering any order or judgment, or issuing any injunction, under the provisions of this section may retain jurisdiction, and the cause may be continued.
(3) Any penalty directed to be paid under the provisions of this section shall be in addition to any penalty which may be imposed under the provisions of section 421.
History:
1965, Act 332, Eff. Jan. 1, 1966
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 332 of 1965 - Home Improvement Finance Act (445.1101 - 445.1431) › 332-1965-4 - Part 4 (445.1401...445.1431) › Section 445.1431 - Effective Date of Act.

445.1431 Effective date of act.
Sec. 431.
This act shall take effect January 1, 1966.
History:
1965, Act 332, Eff. Jan. 1, 1966
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 341 of 1984 - Farm and Utility Equipment Act (445.1451 - 445.1460) › Section 445.1451 - Short Title.

445.1451 Short title.
Sec. 1.
This act shall be known and may be cited as the "farm and utility equipment act".
History:
1984, Act 341, Imd. Eff. Dec 27, 1984 ;-- Am. 1989, Act 296, Imd. Eff. Jan. 3, 1990
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 341 of 1984 - Farm and Utility Equipment Act (445.1451 - 445.1460) › Section 445.1453 - Repurchase of Inventory on Termination of Agreement; Election to Keep Inventory.

445.1453 Repurchase of inventory on termination of agreement; election to keep inventory.
Sec. 3.
If a dealer enters into an agreement with a supplier and the agreement is subsequently terminated, the supplier shall repurchase any inventory of the dealer as provided in this act. The dealer may choose to keep the inventory if there exists a contractual right to do so.
History:
1984, Act 341, Imd. Eff. Dec. 27, 1984 ;-- Am. 1989, Act 296, Imd. Eff. Jan. 3, 1990 ;-- Am. 1995, Act 86, Imd. Eff. June 20, 1995
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 341 of 1984 - Farm and Utility Equipment Act (445.1451 - 445.1460) › Section 445.1455 - Provisions Supplemental; Election of Remedies; Effect of Electing Contract Remedy; Charge Back.

445.1455 Provisions supplemental; election of remedies; effect of electing contract remedy; charge back.
Sec. 5.
(1) The provisions of this act are supplemental to any agreement between the dealer and the supplier governing the return of inventory and the dealer may elect to pursue either a contract remedy or the remedy provided in this act. With respect to a dealer located in this state, a remedy provided for in this act shall not be limited by any agreement or contract between a supplier and a dealer.
(2) An election by the dealer to pursue a contract remedy does not bar the right of the dealer to the remedy provided in this act as to that inventory not affected by pursuit of the contract remedy.
(3) Notwithstanding anything contained in this act, the rights of a supplier to charge back to the dealer's account amounts previously paid or credited as a discount incident to the dealer's purchase of the inventory repurchased shall not be affected.
History:
1984, Act 341, Imd. Eff. Dec. 27, 1984 ;-- Am. 1989, Act 296, Imd. Eff. Jan. 3, 1990 ;-- Am. 1995, Act 86, Imd. Eff. June 20, 1995
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 341 of 1984 - Farm and Utility Equipment Act (445.1451 - 445.1460) › Section 445.1456 - Exceptions to Repurchase Requirement.

445.1456 Exceptions to repurchase requirement.
Sec. 6.
The provisions of this act shall not require the repurchase of the following by a supplier from a dealer:
(a) Any perishable repair part included in a list of parts with shelf lives published by the supplier and provided to the dealer before termination, the shelf life of which has elapsed before the termination, or which shows evidence of deterioration.
(b) Any single repair part that is priced as, or is only sold as, a set of 2 or more items.
(c) Any repair part that, because of its condition, is not resalable as a new part.
(d) Any inventory for which the dealer is unable to furnish evidence, satisfactory to the supplier, of title free and clear of all claims, liens, and encumbrances.
(e) Any inventory that the dealer chooses to keep and has a contractual right to keep.
(f) Any farm tractors and equipment, utility tractors and equipment, and equipment, or attachments that are not in new, unused, undamaged, complete, and salable condition. This subdivision does not apply to those resalable items described in section 4(1) that were used for demonstration or rental.
(g) Any farm tractors and equipment, utility tractors and equipment, or attachments purchased 30 or more months prior to notice of termination of the contract.
(h) Any inventory that was ordered by the dealer on or after the date of notification of termination of the contract.
(i) Any inventory that was acquired by the dealer from any source other than the supplier.
History:
1984, Act 341, Imd. Eff. Dec. 27, 1984 ;-- Am. 1989, Act 296, Imd. Eff. Jan. 3, 1990 ;-- Am. 1995, Act 86, Imd. Eff. June 20, 1995
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 341 of 1984 - Farm and Utility Equipment Act (445.1451 - 445.1460) › Section 445.1457 - Liability of Supplier or Manufacturer Failing or Refusing to Pay or Credit Account of Dealer; Right of Dealer to Bring Action.

445.1457 Liability of supplier or manufacturer failing or refusing to pay or credit account of dealer; right of dealer to bring action.
Sec. 7.
(1) If any supplier fails or refuses to pay or credit the account of the dealer for any inventory required to be repurchased by section 3 within 90 days after receipt by the supplier of that inventory, he or she shall be liable for 100% of the net cost of all tractors, equipment, and attachments returned or the current net price of all repair parts returned plus any freight charges paid by the dealer and interest on the current net price computed at the legal interest rate from the sixty-first day after receipt of the inventory.
(2) A dealer located in this state shall not waive his or her right to bring any action under this act in the courts of this state. A dealer is not, by virtue of entering into an agreement with a supplier in another state, considered to be doing business in the other state. An action arising under provisions of this act shall be brought in the circuit court of the county in which the dealer has its principal place of business in Michigan.
History:
1984, Act 341, Imd. Eff. Dec. 27, 1984 ;-- Am. 1989, Act 296, Imd. Eff. Jan. 3, 1990 ;-- Am. 1995, Act 86, Imd. Eff. June 20, 1995
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 341 of 1984 - Farm and Utility Equipment Act (445.1451 - 445.1460) › Section 445.1457a - Notice of Termination, Cancellation, Nonrenewal, or Substantial Change in Competitive Circumstances.

445.1457a Notice of termination, cancellation, nonrenewal, or substantial change in competitive circumstances.
Sec. 7a.
(1) A supplier shall not terminate, cancel, fail to renew, or substantially change the competitive circumstances of an agreement without good cause. A supplier shall provide a dealer at least 90 days' prior written notice of termination, cancellation, nonrenewal, or substantial change in competitive circumstances. The notice shall state the reasons or deficiencies for the action, and the dealer has 90 days to submit a plan to correct the stated reasons or deficiencies that is acceptable to the supplier or to correct the stated reasons or deficiencies. Failure by a dealer to comply with the requirements imposed upon the dealer by the supplier's agreement shall be cause for termination, provided the requirements are not different from those requirements imposed by the supplier on other similarly situated equipment dealers within the state.
(2) The notice described in subsection (1) shall state all the reasons for termination, cancellation, nonrenewal, or substantial change in competitive circumstances and shall provide that the dealer has 90 days in which to rectify any claimed deficiency. If a plan to rectify is submitted or the deficiency is rectified within 90 days, the notice is considered void.
(3) The notice provisions of this section shall not apply if the reason for termination, cancellation, or nonrenewal is insolvency, the occurrence of an assignment for the benefit of creditors, bankruptcy, or material misrepresentation and falsification of records. If the reason for termination, cancellation, nonrenewal, or substantial change in competitive circumstances is nonpayment of sums due under the agreement, the dealer shall be entitled to written notice of default in payment and shall have 10 days from the date of delivery of posting of the notice in which to remedy the default. A supplier shall be liable to a dealer for damages caused to the dealer by the supplier's breach of subsection (1).
History:
Add. 1995, Act 86, Imd. Eff. June 20, 1995
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 341 of 1984 - Farm and Utility Equipment Act (445.1451 - 445.1460) › Section 445.1458 - Death of Dealer or Majority Stockholder or Partner; Options of Heirs; Time Limitation; New Franchise Agreement.

445.1458 Death of dealer or majority stockholder or partner; options of heirs; time limitation; new franchise agreement.
Sec. 8.
(1) Upon the death of the dealer or the majority stockholder of a corporation or a partner in a partnership operating as a dealer, the supplier shall, at the option of the heirs, repurchase the inventory from the surviving spouse or the heir or heirs of the dealer or majority stockholder as if the contract had been terminated.
(2) The heir or heirs shall have 200 days from the date of the death of the dealer or majority stockholder to exercise their options under this act. The repurchase of an inventory is not required if the heirs or the supplier enter into an agreement to operate the dealership, wholesale business, or distributorship on substantially similar terms to those of the deceased dealer.
History:
1984, Act 341, Imd. Eff. Dec. 27, 1984 ;-- Am. 1989, Act 296, Imd. Eff. Jan. 3, 1990 ;-- Am. 1995, Act 86, Imd. Eff. June 20, 1995
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 341 of 1984 - Farm and Utility Equipment Act (445.1451 - 445.1460) › Section 445.1459 - Security Interest in Inventory Not Affected.

445.1459 Security interest in inventory not affected.
Sec. 9.
The provisions of this act shall not be construed to affect in any way any security interest that any financial institution, person, or supplier has in the inventory of the dealer.
History:
1984, Act 341, Imd. Eff. Dec. 27, 1984 ;-- Am. 1989, Act 296, Imd. Eff. Jan. 3, 1990 ;-- Am. 1995, Act 86, Imd. Eff. June 20, 1995 ;-- Am. 2000, Act 357, Eff. Mar. 28, 2001
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 341 of 1984 - Farm and Utility Equipment Act (445.1451 - 445.1460) › Section 445.1460 - Applicability of Act.

445.1460 Applicability of act.
Sec. 10.
The provisions of this act shall apply to all agreements, contracts, sales agreements, security agreements, or franchise agreements written or implied in force and effect on or after January 2, 1990.
History:
1984, Act 341, Imd. Eff. Dec. 27, 1984 ;-- Am. 1989, Act 296, Imd. Eff. Jan. 3, 1990 ;-- Am. 1995, Act 86, Imd. Eff. June 20, 1995
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546) › Section 445.1501 - Short Title; Construction.

445.1501 Short title; construction.
Sec. 1.
This act shall be known and may be cited as the "franchise investment law". This act shall be broadly construed to effectuate its purpose of providing protection to the public.
History:
1974, Act 269, Eff. Oct. 15, 1974
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546) › Section 445.1502 - Definitions.

445.1502 Definitions.
Sec. 2.
(1) "Advertisement" means a written or printed communication or a communication by means of recorded telephone message or spoken on radio, television, or similar communications media, published in connection with an offer or sale of a franchise.
(2) "Department" means the department of attorney general.
(3) "Franchise" means a contract or agreement, either express or implied, whether oral or written, between 2 or more persons to which all of the following apply:
(a) A franchisee is granted the right to engage in the business of offering, selling, or distributing goods or services under a marketing plan or system prescribed in substantial part by a franchisor.
(b) A franchisee is granted the right to engage in the business of offering, selling, or distributing goods or services substantially associated with the franchisor's trademark, service mark, trade name, logotype, advertising, or other commercial symbol designating the franchisor or its affiliate.
(c) The franchisee is required to pay, directly or indirectly, a franchise fee.
(4) "Franchisee" means a person to whom a franchise is granted.
(5) "Franchisor" is a person who grants a franchise and includes a subfranchisor.
(6) "Area franchise" means a contract or agreement between a franchisor and a subfranchisor whereby the subfranchisor is granted the right, for consideration given in whole or in part for such right, to sell or negotiate the sale of franchises in the name or on behalf of the franchisor; unless specifically stated otherwise, franchise includes area franchise.
(7) "Subfranchisor" is a person to whom an area franchise is granted.
History:
1974, Act 269, Eff. Oct. 15, 1974 ;-- Am. 1984, Act 92, Eff. June 20, 1984
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546) › Section 445.1503 - Additional Definitions; Burden of Proof.

445.1503 Additional definitions; burden of proof.
Sec. 3.
(1) "Franchise fee" means a fee or charge that a franchisee or subfranchisor is required to pay or agrees to pay for the right to enter into a business under a franchise agreement, including but not limited to payments for goods and services. The following are not the payment of a franchise fee:
(a) The purchase or agreement to purchase goods, equipment, or fixtures directly or on consignment at a bona fide wholesale price.
(b) The payment of a reasonable service charge to the issuer of a credit card by an establishment accepting or honoring the credit card.
(c) Amounts paid to a trading stamp company by a person issuing trading stamps in connection with the retail sale of merchandise or service.
(d) Payments made in connection with the lease or agreement to lease of a franchised business operated by a franchisee on the premises of a franchisor as long as the franchised business is incidental to the business conducted by the franchisor at such premises.
(2) "Fraud" and "deceit" are not limited to common law fraud or deceit.
(3) "Offer" or "offer to sell" includes an attempt to offer to dispose of or solicitation of an offer to buy, a franchise or interest in a franchise for value. The terms defined in this act do not include the renewal or extension of an existing franchise where there is no interruption in the operation of the franchised business by the franchisee.
(4) "Order" means a consent, authorization, approval, prohibition, or requirement applicable to a specific case issued by the department.
(5) "Person" means an individual, corporation, a partnership, a joint venture, an association, a joint stock company, a trust, or an unincorporated organization.
(6) "Publish" means publicly to issue or circulate by newspaper, mail, radio, or television or otherwise to disseminate to the public.
(7) "Rule" means a rule promulgated by the department.
(8) "Sale" or "sell" includes a contract or agreement of sale of, contract to sell, or disposition of, a franchise or interest in a franchise for value.
(9) "State" means a state, territory, or possession of the United States, the District of Columbia, and Puerto Rico.
(10) In any proceeding under this act, the burden of proving an exemption or an exception from a definition is upon the person claiming it.
History:
1974, Act 269, Eff. Oct. 15, 1974 ;-- Am. 1984, Act 92, Eff. June 20, 1984
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546) › Section 445.1504 - Arrangements Between Franchisor and Franchisee to Which Act Applicable; Making Offer or Sale of Franchise in State; Accepting Offer to Sell in State; Communication of Acceptance.

445.1504 Arrangements between franchisor and franchisee to which act applicable; making offer or sale of franchise in state; accepting offer to sell in state; communication of acceptance.
Sec. 4.
(1) This act applies to all written or oral arrangements between a franchisor and franchisee in connection with the offer or sale of a franchise, including, though not limited to, the franchise offering, the franchise agreement, sales of goods or services, leases and mortgages of real or personal property, promises to pay, security interests, pledges, insurance, advertising, construction or installation contracts, servicing contracts, and all other arrangements in which the franchisor or subfranchisor has an interest.
(2) An offer or sale of a franchise is made in this state when an offer to sell is made in this state, or an offer to buy is accepted in this state, or, if the franchisee is domiciled in this state, the franchised business is or will be operated in this state.
(3) An offer to sell is made in this state when the offer either originates from this state or is directed by the offeror to this state and received at the place to which it is directed. An offer to sell is accepted in this state when acceptance is communicated to the offeror in this state. An acceptance is communicated to the offeror in this state when the offeree directs it to the offeror in this state reasonably believing the offeror to be in this state and it is received at the place to which it is directed.
(4) An offer to sell is not made in this state merely because a publisher circulates or there is circulated on his behalf in this state a bona fide newspaper or other publication of general, regular, and paid circulation which has had more than 2/3 of its circulation outside this state during the past 12 months, or a radio or television program originating outside this state is received in this state.
History:
1974, Act 269, Eff. Oct. 15, 1974
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546) › Section 445.1504a - Applicability of Act.

445.1504a Applicability of act.
Sec. 4a.
This act shall not apply to a nonprofit organization operated on a cooperative basis by and for independent retailers to which all of the following apply:
(a) Control and ownership of each member is substantially equal.
(b) Membership is limited to those who use the services furnished by the organization.
(c) Transfer of ownership is prohibited or limited.
(d) Members receive no return on capital investment.
(e) Substantially equal economic benefits pass to the members on the basis of patronage in the organization.
(f) Members are not personally liable for obligations of the organization in the absence of a direct undertaking or authorization by the members.
(g) The wholesale goods and services of the organization are furnished primarily to the members.
(h) No part of the receipts, income, or profit of the organization are paid to any profit-making entity except for arms-length payments for necessary goods and services.
(i) Members are not required to purchase goods or services through any profit-making entity.
History:
Add. 1989, Act 212, Imd. Eff. Nov. 13, 1989
2023 Michigan Compiled Laws › Chapter 445 - Trade and Commerce › Act 269 of 1974 - Franchise Investment Law (445.1501 - 445.1546) › Section 445.1504b - Franchisee as Sole Employer.

445.1504b Franchisee as sole employer.
Sec. 4b.
To the extent allocation of employer responsibilities between the franchisor and franchisee is permitted by law, the franchisee shall be considered the sole employer of workers for whom it provides a benefit plan or pays wages except as otherwise specifically provided in the franchise agreement.
History:
Add. 2015, Act 266, Eff. Mar. 22, 2016