Legal

 
DEFINITIONS

The following definitions apply to words frequently used in this Contract and appear in Bold Faced Type:

You, Your – Means the Contract Holder shown on the front page as the Customer or the person to whom this Contract was properly transferred.

We, Us, Our – Means the obligor of this Contract as stated on the front page of this Contract as MEMBERSHIP AUTO.

Contract – Means the Service and Repair Club Contract which You have purchased from Us to protect Your Vehicle. THIS IS NOT INSURANCE. THIS IS NOT EXTENDED WARRANTY

Front Page – Means the Front Page of the Service and Repair Club Contract which must be attached to and forms part of this Contract. It lists information regarding You, Your Vehicle, Plan(s) selected, and other vital information.

Schedule of Coverages – Lists the Coverage provided to You for Your Vehicle under this Contract.

Plan – Means the protection you have selected, as listed on the Front Page and explained in more detail in the Schedule of Coverages section.

Vehicle – Means the Vehicle which is described on the Front Page.

Breakdown – Means the failure of a covered part under normal service. A covered part has failed when it can no longer perform the function for which it was designed solely because of its condition and not because of the action or inaction of any non-covered parts. Subsequent Damages resulting from the Breakdown of a covered part are covered by this Contract except when You have failed to perform the recommended maintenance services for Your Vehicle, Neglect.

Maintenance Schedule – Means the Schedule provided by Us regarding the regular maintenance of Your Vehicle, including mileage and specific dates that must be complied with as part of this Contract.

Subsequent Damage – Means the direct or immediate damage to a non-covered part occurring as a singular event or failure originating with the failure of a covered part.

Consequential Damage – Means an event or damage that occurs separately as a consequence or result of the failure of a covered or non-covered part, such as, loss of time or use, inconvenience, commercial loss, personal injury, or property damage.

Pre-Existing – Means a condition that within all reasonable mechanical probability relates to the mechanical fitness of Your Vehicle prior to Contract issuance. Please see these Exclusions on the Front Page of the Contract which are deemed Pre-Existing at the time of Vehicle Qualification.

Towing limited to 50 miles per occurrences, 100 miles per year. Unless otherwise stated.

PROVISIONS OF THIS SERVICE AND REPAIR CLUB CONTRACT

This CONTRACT is between US and YOU, and is subject to all the Terms and Conditions contained herein.

This contract, in part or in whole, can be assigned to another party or company by Membership Auto or any of its affiliates at any time for any reason with 15 day notice. This contract, in whole or in part, may be sold to a subsidiary or 3rd party with 15 day notice. There are no fees to the customer for any of these transactions, should they occur.

1. BREAKDOWN OF COVERED PARTS We will pay for reasonable costs to repair or replace any Breakdown of a part listed in the Schedule of Coverages. REPLACEMENT PARTS MAY BE NEW,

USED, REMANUFACTURED, INDEPENDENTLY MANUFACTURED/DISTRIBUTED OR OF LIKE KIND AND QUALITY AT DISCRETION OF MEMBERSHIP AUTO.

2. CANCELATION: Customer can cancel any contract anytime for any reason . Customer must give us 15 day advance notice via certified mail to cancel, all other methods will not be valid. No refund issued in part or in whole for any reason..

3. CHANGE OF INFORMATION: Any changes to personal or billing information needs to be disclosed to MEMBERSHIP AUTO certified mail or in person within 20 days or contract is void.

4. CONTRACT PERIOD

ALL PLANS REQUIRE A VEHICLE QUALIFICATION PRIOR TO COVERAGE TAKING EFFECT. Period will last up to 15 years from the date of manufacture or 30K* miles whichever comes first or when cancelled by either party. This contract self renews every month. Terms and conditions are subject to change with 60 days notice.

5. COMMERCIAL USE – Plan coverage plus 15%. Vehicles used for commercial purposes, which can be determined by the Vehicle Qualification.

6. COVERAGE

a. The Coverage afforded You for Your Vehicle is fully described in this Contract. Please see the section: “Schedule of Coverages” of this Contract. Coverage under this Contract will expire according to the Date on the Front Page of the Contract or when the Vehicle reaches 300,000* miles, whichever occurs first.

b. Repairs: I understand that repairs & replacement of parts are at the soul discursion of MEMBERSHIP AUTO safety guidelines. At no time will I be allowed to choose when parts are replaced, repaired or serviced unless I pay for them at retail price.

c. We cover leaks not seepage of gaskets as determined by MEMBERSHIP AUTO.

7. GOVERNING LAW AND VENUE

This Contract shall be governed and construed in accordance with the laws of the State of Florida without regard to applicable conflict of law principles. To the fullest extent permitted by law.

8. INSUFFICIENT FUNDS FEE

All fees are payable automatically via debit card, automatic checking account debit or credit card. Non-personalized checks will not be accepted for payment of fees. Fees are due and payable as of the date of this Contract and automatically deducted each month thereafter. Insufficient funds must be redeemed immediately (within 5 days) along with the payment of forty dollars ($40.00) insufficient funds fee to avoid termination of Contract.

9. LABOR – We cover our labor only, on all associated and covered parts & services.

10. LIMITS OF LIABILITY

a. Per Repair Visit – Our liability for any (1) Repair Visit shall in no event exceed the trade-in value of Your Vehicle at the time of said Repair Visit, as listed in the NADA Used Car Guide.

b. Aggregate – The total of all claims and benefits paid or payable while this Contract is in force shall not exceed the price You paid for Your Vehicle (excluding tax, title and license fees)

11. Long Trip – we will cover any breakdown, other than excluded, for up to 2000 miles or 2 weeks; whichever comes first. You must bring the covered vehicle by one of our shops to have a PRE-TRIP inspection no sooner than 3 days prior to trip. The charge for the PRE-TRIP is $19.99 per event. We will cover parts and labor at a shop of our choosing in your local area. Towing will be covered by you, unless purchased in contract with Membership Auto. The same exclusions provided for in the base contract apply to this trip.

12. MAINTENANCE REQUIREMENTS

a. You must have Your Vehicle checked and serviced in accordance with the Maintenance Schedule set forth by MEMBERSHIP AUTO Failure to comply will void Contract.

b. This Contract covers 6 visits per year. Additional visits to be determined, by Us, on an individual basis.

13. MANDATORY ARBITRATION

This Contract requires binding arbitration if there is an unresolved dispute between You and Us concerning this Contract, including the cost of, lack of or actual repair or replacement arising from a Breakdown.

Under this arbitration provision, You give up Your right to resolve any dispute arising from this Contract by a judge and/or jury. You also agree not to participate as a class representative or class member in any class action litigation, any class arbitration or any consolidation or individual arbitrations cost is yours.

14. Our pledge to you – You will save more than you spend with Membership Auto service and repair club or we give you 3 times your money back. This plan has guaranteed value that cannot be taken away unless contract is voided.*

*Based on full retail value of closest competitors full rates, without discount or favor. Exact quality and reputable facility/amenities apply to this pricing model. See associate for details.

15. OUR RIGHTS – We have the right to take any action to enforce Our rights hereunder in accordance with applicable law. We shall be entitled to reasonable attorney’s fees and expenses incurred in enforcing Our rights or collecting any amounts due hereunder.

16. OUR RIGHT TO RECOVER PAYMENT

If You have a right to recover against another party for anything We have paid under this Contract, Your rights shall become Our rights. You shall do whatever is necessary to enable Us to enforce these rights. We shall recover only the excess after You are fully compensated for Your loss.

17. Pick Up Plan- We will pick up and drop off your vehicle for service or repair, within 10 miles of a Membership Auto for an additional monthly fee of $9.99 per month. Up to 5 times per year unless otherwise stated. We may allow vehicle pickup from greater mileage with additional fees. See associate for details and pricing.

18. PREPAYMENT – You have the right to prepay the entire unpaid Balance at any time, without penalty or discount.

19. QUALIFICATION PROCESS This is not free diagnostics. We will tell you if there are issues that need to be diagnosed and they will have to be covered by you before being included on the program. This includes but is not limited to – check engine lights, abs lights, air bag lights, oil leaks, inoperable systems etc.

20. REFUNDS & APPLICABLE CHARGES

a. There will be no refunds on any whole or partial month that has been paid, for any reason. By signing this contract You agree that no bank charge-backs or stop-payments will be initiated by You. In the event that any scheduled payment is not made on or before the Payment Date, MEMBERSHIP AUTO may, in its sole discretion, cancel the Contract and this agreement at any time for nonpayment. NSF Payment Charge: Except as prohibited by applicable law, You agree to pay MEMBERSHIP AUTO

(i) a fee of $40 for each check or each debit that is dishonored by Your bank, and (ii) a fee of $40 for each credit card chargeback. You consent to the payment of all Applicable Charges in accordance with the Payment Option selected on page 1 hereof.

b. Prices are subject to change with 30 day notice.

21. REINSPECT FEE: If vehicle is canceled for any reason a $200.00 re-inspection fee will apply. Before getting back on plan.

22. RENTAL COVERAGE – Should You choose to add Rental Coverage to your Plan coverage, the Rental Coverage is limited up to 7 days. Rental coverage will take effect only if repairs will take more than 24 hours. Rental will be chosen by us.

23. TERRITORY This Contract applies only to Breakdowns that occur and repairs made within the State of Florida in the United States of America.

24. TRANSFER OF YOUR VEHICLE SERVICE CONTRACT

a. Your Contract may be transferable to someone to whom You sell or otherwise transfer Your Vehicle while this Contract is still in force. This Contract cannot be transferred if the title of transfer of Your Vehicle passes through an entity other than the subsequent buyer, or Your Vehicle is sold or traded to a dealership, leasing agency, or entity/individual in the business of selling vehicles. This Contract can only be transferred once and the transfer must be initiated by the original Contract Holder.

b. To transfer, the following must be submitted to MEMBERSHIP AUTO within 15 days of the change of ownership to a subsequent individual purchaser: – A completed transfer form; with – Name and Address of new owner, date of sale to new owner, current mileage; and – $40.00 Transfer Fee made payable to MEMBERSHIP AUTO.

25. VEHICLE QUALIFICATION – At the time of entering into this Contract, Your Vehicle must be examined by Us for any Pre-Existing conditions which shall be noted in the Exclusions section of this Contract on the Front Page.

There will be a charge for this determined by us on whether vehicle qualifies of not. There will also be a min. 1 month paid whether you choose to take.

WE DO NOT GUARANTEE YOUR CAR WILL NOT BREAK DOWN. WE GUARANTEE WE WILL DO OUR BEST TO STOP THAT FROM HAPPENING. NEITHER MEMBERSHIP AUTO NOR ANY OF OUR AFFILIATES WILL BE HELD LIABLE IN THE EVENT OF A BRAKEDOWN OR FAILURE RESULTING IN A ACCIDENT OR INJURY TO YOU OR OTHERS.

CHECK LIST: DID YOU

GET ALL PAGES SIGNED FRONT & BACK COPY OF CREDIT CARD COPY OF DRIVERS LICENSE

PHOTOS ATTACHED TO FILE? ALL FIELDS FILED OUT ALL 3 PAGES DONE (CONTRACT/QUALIFYING/CLASSIFICATION)

QUALIFICATION REVIEW: EXCLUSIONS and/or ANY DAMAGE THEY CAUSE ARE NOT COVERED UNDER THIS WARRANTY:

NO ENGINE WILL BE COVERED UNTIL OIL ANALYSIS IS RETURNED TO US. CUSTOMER PAYS % SHARE OF FAILURE.

1. SHOCKS – over 40k

2. STRUTS – over 40k

3. THERMOSTAT – over 40k

4. FUEL FILTER – over 15k

5. CABIN AIR FILTER – over 25k

6. TIMING BELT – over 60k

7. TUNE UP – over 30k

8. CLUTCH – over 50k

9. ENGINES, diffs or trans with over 100k prorated – 25%

10. ENGINES, diffs or trans with over 150k prorated – 50%

11. ENGINES, diffs or trans with over 200k prorated – 75%

12. ENGINES, diffs or trans with over 250k prorated – 90%

13. NITRO FILL DONE Y N (will void tire warranty)

 

EXCLUDED MODELS: SUBJECT TO CHANGE WITHOUT NOTICE.

FACTORY UPGRADES I.E. SOUTHERN COMFORT, HARLEY DAVIDSON, NASCAR, YENKO, ANNIVERSARY EDITIONS, SEAN JEAN (BUT NOT LIMITED TO.)

SUPER CARS, EAGLE, DAEWOO, SUZUKI, 75K PLUS FACTORY PRICE TAG, SALEEN, ROUSH, SVT, MCLAREN, BUGATTI, LOTUS, KIT CARS, ANYTHING SHIPPED FROM OTHER COUNTRIES, MASERATI, LAMBORGHINI, FERRARI, ASTON MARTIN, MAEBACH, BENTLEY, ROLLS ROYCE, PORSCHE, TESLA, HYBRID, ELECTRIC CARS, FLEX FUEL, PROPANE VEHICLES, VEHICLES THAT HAVE BEEN TOTALED, SALVAGE TITLE, ANYTHING MODIFIED FROM FACTORY.

WE RESERVE THE RIGHT TO DECLINE COVERAGE OF ANY VEHICLE UPON QUALIFICATION WITHOUT REFUND. MEMBERSHIP AUTO RESERVES THE RIGHT TO ADD AN ADDENDUM TO THIS CONTRACT FOR EXCLUSIONS OR MISSED INFORMATION IN THIS CONTRACT WITHIN 7 DAYS FROM THE TIME OF SIGNING. ADDENDUM WILL BE SENT VIA CERTIFIED MAIL AND MUST BE SIGNED AND RETURNED IN LESS THAN 14 DAYS FROM THE TIME

NOTICE: Any material misrepresentation, fraud, odometer tampering, failure to follow the Vehicle Maintenance Schedule prescribed by Us or non-payment of premium will result in cancellation of Contract.

We will ensure safe operation of the vehicle. We will not make vehicle in “brand new” condition as it is a used vehicle. We will not remove all squeaks and rattles per the customers request. We will only ensure that it is not a safety issue and if customer chooses to we can address the issue for regular hourly rate plus parts. When we update contract, customer must come in to sign new contract within 15 days of notification or contract is void. This agreement is automatically renewable every 30 days is subject to changes and updates.

**26. EXCLUSIONS

Including the Exclusions set forth on the Front Page of the Contract, the following Exclusions apply:

A. For any damage and/or Breakdown resulting from collision, fire, theft, vandalism, riot, explosion, lightning, earthquake, freezing, windstorm, hail, water or flood, acts of God, salt, environmental damage, chemicals, contamination of fluids, fuels, coolants, or lubricants.

B. For any Breakdown caused by misuse, abuse, negligence, lack of normal maintenance required by MEMBERSHIP AUTO’s Maintenance Schedule for Your Vehicle, or improper servicing or repairs subsequent to purchase. For any Breakdown caused by sludge build-up resulting from Your failure to perform recommended maintenance services, or failure to maintain proper levels of lubricants and/or coolants, or failure to protect Your Vehicle from further damage when a Breakdown has occurred or failure to have Your Vehicle towed to a MEMBERSHIP AUTO facility when continued operation may result in further damage. Continued operation includes Your failure to observe warning lights, gauges, or any other signs of overheating or component failure, such as fluid leakage, slipping, knocking, or smoking and not protecting Your Vehicle by continuing to drive creating damage beyond initial failure.

C. For any repair or replacement of any covered part if a Breakdown has not occurred or if the wear on that part has not exceeded the field tolerance allowed by the manufacturer. Any part that

MEMBERSHIP AUTO recommends or requires that it be replaced or repaired, or is an update, and is not a Breakdown is Your responsibility and expense.

D. If any alterations have been made to Your Vehicle or You are using or have used Your Vehicle in a manner not recommended by the manufacturer, including but not limited to, the failure of any custom or add-on part, all frame or suspension modifications, lift kits, any tire that is not recommended by the original manufacturer if it creates an odometer/speedometer variance of greater than 4%, or trailer hitches. Also not covered are any emission and/or exhaust system modifications, engine modifications, transmission modifications, and/or drive axle modifications, which includes any performance modifications.

E. If Your odometer has ceased to operate and odometer repairs have not been made immediately, or the odometer has been altered in any way subsequent to the purchase, or if Your Vehicle has ever been a total loss, salvaged, rebuilt or is a grey market vehicle.

F. For any liability for property damage, or for injury to or death of any person arising out of the operation, maintenance, or use of Your Vehicle described in this Contract, whether or not related to the parts covered. For loss of use, time, profit, and inconvenience, or any other consequential loss (except as may otherwise be provided under the Schedule of Coverages), including any Consequential Damage to a non-covered part that results from a Breakdown. G. When the responsibility for the repair is covered by an insurance policy, manufacturer and/or dealer customer assistance program, or any warranty from the manufacturer such as extended drivetrain, major component or full coverage warranties, or a repairer’s guarantee/warranty. Further Coverage under this Contract is similarly limited in the event of a Breakdown if the manufacturer has announced its responsibility through any means, including public recalls and factory service bulletins.

H. If Your Vehicle is used for towing.

I. For any Pre-Existing Condition or for any Breakdown occurring before Coverage takes effect or prior to the Contract start date, or if the information provided by You, or MEMBERSHIP AUTO cannot be verified as accurate or is found to be deceptively inaccurate.

J. For Breakdowns that occur and/or repairs made outside the State of Florida or outside the United States of America unless otherwise noted..

K. For diagnostic and/or tear down procedures that are not listed, or are in excess of the times listed in the current year’s national flat rate hourly guide in conjunction with a covered repair.

L. **WE DO NOT COVER:

ABUSE, NEGLECT, FAILURE TO FOLLOW SCHEDULE WE HAVE GIVEN YOU, ANYONE (including you) OTHER THAN US WORKING ON VEHICLE FOR ANY REASON, ACCIDENTS, ANYTHING COVERED BY REGULAR INSURANCE, ANYTHING COVERED BY EXISTING EXTENDED WARRANTY, ACTS OF GOD, I.E., LIGHTNING, FLOOD, EARTHQUAKE, TSUNAMI, MONSOON, SANDSTORM, TREMOR, HAIL, RAIN, RUST, WIND, VOLCANO, HURRICANE, TORNADO, ETC. AFTERMARKET MODIFICATION OF ANY KIND AND ANY RELATED DAMAGE CAUSED BY ITS INSTALLATION OR USE OR FAILURE, AUTO BODY, GLASS, RIMS OR HUBCAPS, TRIM – INTERIOR OR EXTERIOR, CARPET, SEATS, INTERIOR PANELS AND HANDLES, DOOR AND WINDSHIELD TRIM AND INSULATION. WRONG FUEL PUT IN VEHICLE (TYPE OR OCTANE RATING), VANDALISM, TSB OR FACTORY RECALL, OR ANYTHING THAT SHOULD BE COVERED BY DEALER DUE TO WORKMANSHIP OR LACK OF QUALITY, CARELESSNESS I.E., DEAD BATTERY BECAUSE LIGHTS WERE LEFT ON ETC., FAILURE TO ACT ON WARNING LIGHT OR NOISE AND CONTINUED OPERATION THEREAFTER WITH SUBSEQUENT DAMAGE, 4 WHEELING, OFF ROADING, RACING, DOUBLE FOOTING (HOLDING OR CONSTANT RIDING) CLUTCH OR BRAKE PEDAL AND SUBSEQUENT DAMAGE (BLUEING OR CHECK MARKS), ANY DAMAGE DONE BY ANIMAL, INSECT OR RODENT. ALSO, WE CAN NOT BE LIABLE FOR PARTS THAT ARE OBSOLETE OR NO LONGER IN PRODUCTION OR ON BACKORDER. WE DO NOT COVER KEYLESS ENTRY KEY FOBS. TIRE BLOWOUT, ROAD DEBRIS DAMAGE. NO PANELS OR TRIM/FINISHES/COSMETIC. WE DO NOT COVER ANY THING THAT IS NOT TRULY FUNCTIONAL IN THE SAFE OPERATION OF VEHICLE.