Exhibit B
 Service Contract Terms and Conditions

 

1.  Parties

The obligor ("Obligor") of this service contract (“Contract”) is Wally's Warranty Corporation, P.O. Box 05689490, Atlanta, GA 30438-6859 except in Texas where the obligor is YoyoDyne Service Management, Inc. The administrator ("Administrator") of this Contract is YoyoDyne Service Management, Inc. .The service performed under this Contract is provided through the Administrator or a servicer approved by Administrator. "We", "Us", and "Our" mean collectively the Obligor and the Administrator.  "You" and "Your" mean the owner of the covered product who paid for this Contract.

2. Special Provisions

Note – Your Contract sales receipt and these terms and conditions, including the provisions, limitations, definitions and exclusions on the front and back sides of this Contract, constitute the entire Contract.

Subrogation– In the event We repair or replace any covered product due to any defect for which the manufacturer (“MFR”) or its agents or suppliers may be legally responsible, You agree to subrogate and assign Your rights of recovery to Us. You will be reimbursed for any reasonable costs and expenses You may incur in connection with the subrogation or assignment of Your rights.

3. Programs

The following programs are available. The program actually purchased by You will be specified on the Contract face:

REPAIR PROGRAM - A covered product will be restored to normal operating condition after it has failed during normal single family household use, including failures due to power surges. The plan covers all labor and parts costs necessary to repair Your covered product for problems due to functional part failures and includes remote control replacement of comparable functionality once per Contract. Non-Repairable Products – If We, in Our sole discretion, determine that a covered product is not repairable, We will replace the product with a product of comparable type, quality and functionality. This Contract is deemed fully performed by replacement of the product and the coverage provided under this Contract shall not be transferable to any replaced product, unless otherwise required by state law. All defective products will become the property of Us, should We unilaterally elect to exercise Our rights to the property.

REPLACEMENT PROGRAM - We will replace any product covered by this service contract that fails during normal single family household use. You will receive either a replacement product or a replacement voucher (“Replacement Voucher”), in Our sole discretion. You will be required to return Your defective product, postage pre-paid by You, to a location specified by Us as a condition for receiving a replacement product or a Replacement Voucher. You will be responsible for packing the product in the original or comparable packaging to prevent further damage during shipping. You may be instructed to return the defective product to the retail dealer where You purchased the product. If Your covered product is found not to be defective, e.g. requires replacement of battery only to resume function, return shipping costs will be charged to You, cash on delivery. Upon replacement of the covered product or the issuance of a Replacement Voucher, this service contract is deemed fully performed as to the replaced product only and shall not be transferable to any replaced product, unless otherwise required by state law. The Replacement Program does not apply to digital cameras or digital camcorders.

a. Replacement Product –Replacement shall be with a product of comparable type, quality and functionality, and will be shipped to You, postage pre-paid by Us.

b. Replacement Voucher – If a Replacement Voucher is issued to You, its value will be equal to the original purchase price of the covered product. If the Replacement Voucher option is authorized, it will be redeemable only at the retail location where You purchased Your original covered product.

4. Product Coverage

The following products are eligible for coverage. The products for which You actually purchased coverage will be listed on the Contract face:

Major Appliances: Such as Washer, Dryer, Refrigerator, Dishwasher, Compactor, Oven, Range. Food Spoilage – You will be reimbursed for food losses resulting from the covered failure of Your refrigerator or freezer up to $100 per appliance over the life of this Contract; proof of loss required.

Other Appliances: Such as YD Water Softener, YD Undercounter Water Filter, YD Reverse Osmosis Water Systems, Vacuum Cleaners.

Major Electronics: Such as TV, VCR, Camcorder, Stereo, CD Player, Projection TV, Tape Player, DVD, Personal Digital Assistants (PDAs), Digital Camera, Digital Camcorder. Head cleaning – All costs associated with one annual head cleaning for VCRs and camcorders are covered on a carry-in basis.

Small Appliances: Such as toaster, coffee maker, bread maker, compact refrigerator, countertop microwave oven.

Digital Satellite Systems (DSS): Receiver Exchange, Antenna Dish, LNB.  If receiver replacement is needed, You will be required to return the defective receiver to the address provided to You by Us. We will cover all shipping and handling expenses.

Major Component: Such as Compressor, Washer Transmission, Magnetron, Picture Tube. If a specific component is listed on the Contract face, only the specified component is covered. Labor costs for the repair, replacement, and installation of that component are not covered.

5.  Coverage Period

Your coverage begins and ends on the dates identified on the face of this Contract. 

6.  Location of Service for Repair Program

a. In-home Service – If “in-home” service is specified, service will be provided at the address identified on the Contract face.  Periodically, Your product may need to be removed and repaired elsewhere but if required, pick-up and return expenses will be covered by this Contract.

b. Carry-in/Mail-in Service – If “carry-in/mail-in” service is specified, and there is a local servicer near You, You are responsible for delivering Your product to and from the authorized repair center. Some products, such as PDAs, digital cameras and digital camcorders, due to their sensitive technical nature, require the controlled environment of a factory authorized service center. We will provide instructions to mail-in these products to an authorized servicer for repair. Reasonable mail-in expenses to and from the service location will be covered by this Contract.

c. DSS Service – Some types of service will be provided in Your home. For other types of service, You will be responsible to remove and send the product to the address provided to You by Us and to reinstall the product. We will cover all shipping and handling expenses.

7.  If You Need Service

Call the telephone number displayed on the face of this Contract to schedule service. Service will be available during regular working hours.

8.  Moving Your Covered Product to a New Location in the USA

You can change Your service address by notifying Us in writing at the address below.

9.  If the Owner of the Covered Product is Changing

You can assign the product coverage to another person by notifying Us in writing at the address below and enclosing a check for $10.00 to cover processing and administration costs. The coverage will become effective when We receive Your written notice and check.

10. Contract Cancellation

a. You may cancel Your Contract at any time for any reason – You must notify the retail dealer in writing. Include Your original Contract with the notification. The retail dealer will accept Your cancellation and determine the amount of the refund based on the calculation in subsection b, below. 

b. Refund Calculation – If canceled by You, Your refund will be calculated as follows: (1) if Your Contract and cancellation notice are received within 30 days of the purchase date of this Contract, You will be refunded the full Contract price; (2) if Your Contract and cancellation notice are received after 30 days from the purchase date but before the effective date of this Contract, as indicated on the face of this Contract, You will be refunded the full Contract price, less an administrative fee of 10% of the Contract price or $25, whichever is less, unless otherwise precluded by law; and (3) if Your Contract and cancellation notice are received after the effective date of this Contract, You will be refunded a pro-rated amount of the Contract price, less any claims paid, less an administrative fee of 10% of the pro-rated Contract price or $25, whichever is less, unless otherwise precluded by law.

c. Cancellation by Us – If We cancel the Contract, for any contractual reason, fraud, misrepresentation or non-payment by You, return of premium will be based on 100% of the unearned pro-rata Contract price.

11. Contract Limitations

a. Indirect Damages – IN NO EVENT WILL WE BE LIABLE FOR SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAYDS RELATING DIRECTLY OR INDIRECTLY TO THIS SERVICE CONTRACT.

b. Renewals – We are not obligated to renew Your Contract.

c. Non-Original Manufacturer and Re-Manufactured Parts – Genuine factory parts will be used whenever possible; however the use of non-original manufacturer and re-manufactured parts is allowed under this Contract.

d. Lemon Policy – We will replace a covered product or part should the same major failure occur to the product or part and require a service call on 3 separate occasions within a 12 month period after the Contract effective date.

e. Limitation of Liability – To the extent permitted by applicable law, Our liability, if any, for any allegedly defective covered product or part shall be limited to repair or replacement of the product or part at Our option, and Our liability, if any, for damages relating to any defective covered product or part shall not exceed Your purchase price for the product or part in question. THIS CONTRACT IS YOUR SOLE EXPRESS WARRANTY WITH RESPECT TO THE COVERED PRODUCT(S).  ALL IMPLIED WARRANTIES WITH RESPECT TO THE PRODUCT(S) INCLUDING, BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, ARE HEREBY EXPRESSLY EXCLUDED.

12. Arbitration

Read The Following Arbitration Provision ("Provision") Carefully.  It Limits Certain Of Your Rights, Including Your Right To Obtain Relief or damages Through Court Action.

 

As used in this Provision, "You" and "Your" mean the person or persons named in this Contract, and all of his/her heirs, survivors, assigns and representatives. And, “We” and “Us” shall mean collectively the Obligor, the Administrator, and the Insurer identified above and shall be deemed to include all of Our agents, affiliates, successors and assigns, and any retailer or distributor of its products, and all of the dealers, licensees, and employees of any of the foregoing entities

 

Any and all claims, disputes, or controversies of any nature whatsoever (whether in contract, tort or otherwise, including statutory, common law, fraud (whether by misrepresentation or by omission) or other intentional tort, property, or equitable claims) arising out of, relating to, or in connection with (1) this Contract or any prior service contract, and the purchase thereof; and (2) the validity, scope, interpretation, or enforceability of this Provision or of the entire Agreement (“Claim”), shall be resolved by binding arbitration before a single arbitrator.  All arbitrations shall be administered by the American Arbitration Association (“AAA”) in accordance with its Expedited Procedures of the Commercial Arbitration Rules of the AAA in effect at the time the Claim is filed.  The terms of this Provision shall control any inconsistency between the AAA's Rules and this Provision. You may obtain a copy of the AAA's Rules by calling (800) 778-7879. Upon written request We will advance to You either all or part of the fees of the AAA and of the arbitrator.  The arbitrator will decide whether You or We will be responsible for these fees. The arbitrator shall apply relevant substantive law and applicable statute of limitations and shall provide written, reasoned findings of fact and conclusions of law.  This Provision is part of a transaction involving interstate commerce and shall be governed by the Federal Arbitration Act, 9 U.S.C. § 1 et seq.  If any portion of this Arbitration Provision is deemed invalid or unenforceable, it shall not invalidate the remaining portions of the Arbitration Provision.  This Arbitration Provision shall inure to the benefit of and be binding on You and Us and its Provision shall continue in full force and effect subsequent to and notwithstanding the expiration of termination of this Contract.

 

You agree that any arbitration proceeding will only consider Your Claims.  Claims by, or on behalf of, other individuals will not be arbitrated in any proceeding that is considering Your Claims. 

 

You and We Understand and agree that because of this arbitration PROVISION neither You nor We will have the right to go to court except as provided above or to have a jury trial or to participate as any member of a class of claimants pertaining to any claim.

 

13.  Consumer’s Promises and Assurances

In order to keep this Contract in force during its term, You promise and assure: (1) full cooperation with Our technicians and authorized servicers during diagnosis and repair of the covered product; (2) accessibility of the covered product; (3) a non-threatening and safe environment for in-home service; (4) the presence of an adult at the time of scheduled service; (5) that the covered product is not used for business or commercial purposes; and (6) that You will provide written notice of any defect or deficiency in service within 90 days of discovery.

14.  What is Not Covered – Your Contract does not cover:

a. repair of product(s) upon noncompliance of any part of Section 13 by You; b. coverage, components, products or items not specifically listed herein; c. consumer replaceable items such as batteries, tapes, ribbons, bulbs, hoses, water membranes, air filters, water filters, fuses, belts, knobs, vacuum cleaner belts, bags, projection TV screen protectors, film, accessory cables, removable data storage media; d. any repair covered by a MFR’s original warranty or initiated by the MFR, or recall program whether the MFR is in business or not and all new products with less than an original 90 day MFR’s parts & labor warranty and costs associated with MFR’s recommended normal maintenance; e. unauthorized repairs performed by third parties, inaccessible products, theft; f. failures of components such as cabinets, frames, masks, finish defects, glass, scratched lenses; g. damage or failures caused by conditions beyond Our control such as inadequate plumbing, wiring, power supply, rust, corrosion, infestation, negligence, abuse, misuse, acts of God, failure to follow MFR’s recommended maintenance, improper installation, leaking batteries, video game and other display markings, problems with phone lines; h. repair or replacement caused by defects that existed prior to this Contract purchase; i. service outside the continental USA, Alaska, and Hawaii; j. water filtration systems where water is microbiologically unsafe or of unknown quality when there has not been adequate disinfection before or after the system, such as single-user wells, or other non-public water systems not regulated by federal or state health and safety requirements; k. products used for commercial purposes; l. loss or damage to recording media, software or data; computer viruses, software defects or software generated problems; m. shipping damage to products resulting from inadequate packaging by You; n. Products not having a full functional MFR's warranty; o. upgrades to comply with regulatory laws.


