Law Talk - Are Roofing Shingles Consumer Products?
The California Court of Appeal
for the 6th District Answered Maybe
By Sam K. Abdulaziz
Attorney at Law
An owner
hired a roofing company to re-roof his family home. The shingles were chosen by
the owner. Sometime later, the owner observed cracks in several shingles. He
then filed a complaint alleging several causes of action including breach of
warranty under the Magnuson-Moss Warranty – Federal Trade Commission Improvement
Act (The Act).
It is
significant that the damages that may be awarded may be different under a
straight breach of contract than under the Act.
The
defendant offered a settlement but that settlement offer was rejected.
The
manufacturer of the shingles argued that because the contract was for a “lump
sum” with no separate charge for materials and the shingles were
incorporated into a dwelling the shingles were not consumer goods under the act.
“Unlike
Song-Beverly, which allows only a buyer of consumer goods to bring an action,
Magnuson-Moss permits a “consumer” to bring an action for damages and other
relief when a warrantor breaches its obligations under a warranty or under the
act. The term consumer includes not only a “buyer (other than for purposes of
resale) of any consumer product,” but also any person to whom such product is
transferred during the duration of an implied or written warranty (or service
contract) applicable to the product, and any person who is entitled by the terms
of such warranty (or service contract) or under applicable State law to enforce
against the warrantor (or service contract) the obligations of the warranty (or
service contract).”
Magnuson-Moss defines a “consumer product” as “any tangible
personal property which is distributed in commerce and which is normally used
for personal, family, or household purposes (including any such property
intended to be attached to or installed in any real property without regard to
whether it is attached or installed).”
This definition includes property which is intended to be
attached or installed. This means that a product is a consumer product if the
use of the that type of product is not uncommon.
Any ambiguity will be resolved in favor or coverage. The
definition of “Consumer product” limits the applicability of the Act to personal
property, including any such property intended to be attached to or installed
in any real property without regard to whether it is so attached or installed .
This provision brings under the Act separate items of equipment attached to real
property, such as air conditioners, furnaces, and water heaters. State law
may classify many such products as fixtures to, and therefore a part of,
realty. The statutory definition is designed to bring such products under the
Act regardless of whether that may be considered fixtures under state law.
The coverage of building materials which are not
separate items of equipment is based on the nature of the purchase transaction.
An analysis of the transaction will determine whether the goods are real or
personal property. The construction of a consumer dwelling are all consumer
products when sold over the counter as by hardware and building supply
retailers.”
Therefore the shingles were consumer goods covered by the
Federal Magnuson-Moss.
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