Opinion ID: 410287
Heading Depth: 2
Heading Rank: 1

Heading: Ready Access to Warranty Binders.

Text: 13 The Act requires that written warranty terms be made available to consumers and potential consumers prior to the sale of covered products. 15 U.S.C. Sec. 2302(b)(1)(A). The pre-sale rule, under the binder option, requires that warranty binders be made available in each department selling covered products, or in a location [providing] ready access to the binders. 16 C.F.R. Sec. 702.3(a)(1)(ii) (fully set out at footnote 2, supra ). 14 The FTC, in the proceedings below, urged that this section means that a binder must be placed in every department selling covered goods. The ALJ rejected the FTC's position as contrary to the language of the regulation. Indeed, as the Commission noted in its decision, the FTC's interpretation had been expressly rejected during the rule-making proceedings leading to the promulgation of the pre-sale rule. See 40 Fed.Reg. 60,168, at 60,183 (1975). 6 15 The ALJ and the Commission agreed that providing prospective consumers with ready access to the warranty binders requires, for large retailers, that one set of binders must be available on each selling floor. Wards was held to be in violation of this requirement and was ordered to comply. 16