Bill 25.

Summary.

The bill amends Article 46 of Law 45 of October 31, 2007, concerning the duties of suppliers and manufacturers under warranties. The amendment covers mechanical, electrical, electromechanical and electronic equipment or products, furniture, and other goods of a similar nature that do not function properly or cannot be used normally because of a product defect or a cause attributable to the importer, supplier or manufacturer. In those circumstances, the manufacturer must repair or replace the goods within thirty days after the claim is filed, provided it has offices domiciled in the Republic of Panama. Otherwise, that duty falls on the supplier.

Warranty repairs are provided at no cost to the consumer on up to two occasions. Replacement is required if the damage occurs within the first fifteen days after delivery of the product or if the goods develop a third defect. If thirty days pass without repair, the supplier or manufacturer must replace the goods with identical goods at no cost or refund the amounts paid. These provisions determine the remedy according to when the damage occurs, whether the defect recurs and whether the repair deadline is met.

For motor vehicles and sophisticated technology equipment, the latter defined as technically complex or advanced equipment, the bill allows up to one hundred and five calendar days for repair or replacement. The period runs from the time there is a written record of the consumer’s request to the supplier and the supplier’s corresponding inspection. If the supplier exceeds sixty days, it must provide the consumer with a vehicle similar to the one submitted for repair for the remaining repair period. If the time exceeds one hundred and five days, it must replace the vehicle with a new one.

The duty to provide a new vehicle does not apply when a defect or damage does not prevent the vehicle’s safe, proper or normal use. In that situation, the consumer may bring a claim before the Authority for it to determine a monetary penalty for each day beyond the one hundred and five day period, without prejudice to any other remedies available to the consumer. For vehicles under warranty whose damage is unrelated to manufacturing defects, the supplier must provide the parts within the stated period, measured from the consumer’s request.

Article 2 identifies the amendment to Article 46 of Law 45 of October 31, 2007, as previously amended by Law 14 of February 20, 2018. Article 3 provides for commencement upon promulgation. The proposal concerns the Authority named as the body before which consumers may bring claims, as well as manufacturers, importers, suppliers and consumers of vehicles, technology equipment, furniture and other goods covered by warranties.