AGREEMENT

FURNITURE & UPHOLSTERY – PREFERRED COVERAGE

This Agreement is not a Contract of Insurance or a Warranty subject to the Federal Magnuson-Moss Act

 

THIS AGREEMENT DESCRIBES THE PROTECTION YOU WILL RECEIVE IN RETURN FOR YOUR PAYMENT OF THE PURCHASE PRICE OF THIS AGREEMENT.

This Agreement contains a Dispute Resolution/Arbitration Agreement and Class Action Waiver. You must keep this Agreement, Your sales invoice and receipt for the product You purchased. They are integral parts of this Agreement and You may be required to produce them to obtain service. You must maintain the Covered Product as recommended by the manufacturer's owner’s manual and product warranty. Refer to Your sales receipt or invoice to determine the term of this Agreement. You acknowledge Your understanding of the Limited Applicability of the Federal Magnuson-Moss Warranty Act as set out below in this Agreement.

 

NOTICE: (1) THE PURCHASE OF THIS AGREEMENT IS NOT REQUIRED TO EITHER PURCHASE YOUR COVERED PRODUCT OR TO OBTAIN FINANCING; (2) THIS AGREEMENT DOES NOT REPLACE THE MANUFACTURER WARRANTY OR SELLING RETAILER’S LIMITED PRODUCT WARRANTY, IF ANY, ON YOUR COVERED PRODUCT. (3) THE RATE CHARGED FOR THIS AGREEMENT IS NOT SUBJECT TO REGULATION BY THE FLORIDA OFFICE OF INSURANCE REGULATION.

 

DEFINITIONS:

“We”, “Us” “Our” and “Obligor”: The company or provider obligated under this Agreement, Lyndon Southern Insurance Company, 10751 Deerwood Park Blvd., Suite 200, Jacksonville, FL 32256, Florida License No. 03698.

“You”, “Your”, “Service Agreement Holder”, “Agreement Holder” and “Lessee”: The original purchaser of the Covered Product(s), or the Lessee, if the Covered Product was acquired under a lease-to-own arrangement (“LTO Arrangement”), and any authorized transferee/assignee of the original purchaser. “Administrator”: The entity performing administrative or operational functions pursuant to this Agreement, City Furniture, Inc., 6701 N Hiatus Road, Tamarac, FL 33321. “Agreement”: This document, inclusive of all provisions, terms and conditions contained herein, along with a copy of Your invoice or sales receipt, listing the Covered Product and date of purchase. This Agreement is between the Obligor and You. “Selling Retailer”: The entity selling the Covered Product and this Agreement. “Covered Product”: The consumer item(s) for which You purchased this Agreement, as indicated on Your sales receipt or invoice from the Selling Retailer. “Accidental”: A single, unexpected, sudden and unintentional event that does not include accumulated damage.

 

TERM: The term of this Agreement will begin on the date that You take possession of Your Covered Product and will continue for the period indicated on Your sales receipt or invoice, either one (1) or three (3) years.

 

WHAT IS COVERED: NOT ALL DEFECTS, ACCIDENTAL DAMAGE, AND ACCIDENTAL STAINS TO THE PRODUCT ARE COVERED UNDER THIS AGREEMENT. This Agreement only covers items that are listed on the sales receipt or invoice as a Covered Product. Please read it carefully.

 

Manufacturer Defects: Administrator will repair or replace any furniture with manufacturer’s defects in workmanship and materials during the Term of Your Agreement.

 

Manufacturer Warranty: Your furniture may be covered by a manufacturer’s limited warranty, which will usually provide for repair or replacement of defective furniture at the manufacturer’s discretion. Manufacturer’s warranties may be voided by the removal of law tags or the existence of stains on the Covered Product. Administrator will provide the repair or replacement service for any manufacturer’s warranty, regardless of whether the law tag was removed or a stain exists on the Covered Product, during the Term of Your Agreement. Accidental Damage to Fabric, Leather & Vinyl Upholstery, Wood, Wood Veneer and Wood Laminate Products: Administrator will repair or replace any furniture with damage caused by accidental scratches, rips, tears, burns, or watermarks. Parts will be replaced at Administrator’s option with those of like kind and quality as solely determined by Administrator, and may be new or remanufactured. Accidental Stains to Upholstered Products and Area Rugs: Administrator will provide stain removal services for stains caused by common household foods, beverages, ink, or human bodily fluids during normal product use, in a residential setting, by first providing professional stain removal advice and/or stain removal cleaners or kits and, if the stain persists, the stained area will be serviced by a professional stain removal

technician. You must reasonably cooperate with Administrator in its efforts to perform its obligations under this Agreement. This Agreement is not a cleaning contract and does not cover the cleaning of Covered Product soiled through daily use.

 

Administrator is not responsible for and does not guarantee color match or dye lots on fabric, leather, vinyl or wood finishes and cannot guarantee that an exact product replacement will be available from the manufacturer. If Accidental Damage or Accidental Stains to or on a Covered Product: (1) cannot be repaired or removed; (2) cost more to repair than the original purchase price; or (3) require replacement of parts that are no longer available or have been discontinued by the manufacturer, the affected part or the entire Covered Product will be replaced with a part or product of similar quality and features as determined by Administrator, not to exceed the purchase price of the Covered Product, excluding sales tax, delivery and installation costs. You are responsible for any sales tax, delivery and installation costs associated with a replacement item that exceed the original purchase price of the Covered Product. In the event a Covered Product is replaced and is part of a matching set of products, the Covered Product and the other matching set items will be replaced at the

Administrator’s discretion not to exceed the original purchase price of the Covered Product and matching set of products.

 

LTO ARRANGEMENTS: If the Covered Product is initially acquired under a LTO Arrangement, and a payment is made under this Agreement, any cash settlement or refund received will be paid to the owner of the Covered Product at the time the settlement is made. This will be the Lessor if You have not yet acquired ownership of the property pursuant to the terms and conditions of Your LTO Arrangement, in which case any refund of this Agreement will be credited to Your account. In all other respects, the Lessee will retain a beneficial interest in this and all non-cash benefits described herein shall be rendered to the Lessee. Any owner obligations related to maintenance of the Covered Product shall be the responsibility of the Lessee during the term of any LTO Arrangement except as provided by law. Any reference to purchased, sold, or similar terms shall include leased and its derivatives. Any reference to purchaser shall mean the Lessee under the LTO Arrangement and not the Lessor.

 

HOW TO OBTAIN SERVICE: FOR ALL CLAIMS, A PHOTO OF THE DAMAGED OR STAINED COVERED PRODUCT IS REQUIRED PRIOR TO REPAIR OR REPLACEMENT OF FURNITURE. FOR ACCIDENTAL CLAIMS, A DETAILED EXPLANATION AND DESCRIPTION OF WHERE, WHEN AND HOW THE ACCIDENT OR EVENT OCCURRED IS ALSO REQUIRED. YOU MUST CONTACT THE ADMINISTRATOR FOR AUTHORIZED SERVICE WITHIN THIRTY (30) DAYS AFTER THE PRODUCT DEFECT IS DISCOVERED OR DAMAGE TO THE COVERED PRODUCT OCCURS. IF THE PRODUCT IS ACCIDENTALLY STAINED, YOU MUST CONTACT THE ADMINISTRATOR WITHIN FIVE (5) DAYS OF WHEN THE STAIN OCCURRED. PLEASE READ THE “WHAT IS COVERED” AND “WHAT IS NOT COVERED SECTION OF THIS AGREEMENT”. Call Administrator toll-free at 954.718.3344 between the hours of 8:00 AM and 5:00 PM eastern standard time Monday through Friday or visit https://www.cityfurniture.com/account/orders to submit Your claim online. Administrator will perform services in Your home in the City Furniture trading area within the state of Florida. In the event that You purchase this Coverage and do request benefits during the term of your Agreement, you will be entitled to a store credit equal to the Agreement purchase price. The store credit must be applied against a purchase within forty-five (45) days after Your original Agreement expires, or the credit will expire.

 

LIMIT OF COVERAGE LIABILITY: Our limit of coverage liability for the Covered Product is the lesser of the cost of authorized repairs or replacement with a product of similar quality and features as solely determined by Us, provided however, in no event will Our total liability for repairs or replacement exceed Your purchase price of the Covered Product, excluding sales tax, delivery, shipping and installation costs. Upon replacement, We no longer have any obligation for the replaced product under this Agreement. SERVICE COSTS, TRIP CHARGES, BREAKDOWN CHARGES, INSPECTION FEES OR ESTIMATES FOR REPAIRS NOT AUTHORIZED BY THE ADMINISTRATOR ARE NOT COVERED UNDER THIS AGREEMENT AND ARE YOUR RESPONSIBILITY.

 

WHAT IS NOT COVERED: We will not cover losses on, related to, or caused by the following: (1) Abuse, misuse, reckless, willful, or intentional acts; (2) Any damage or stains caused by pets; (3) Damage or odor as a result of moving or improper storage conditions; (4) Damage or stains caused by fire, smoke, flood or other natural disaster, theft or vandalism; (5) Damage caused by continual, day to day use, or failure to take sufficient care to protect the Covered Product; (6) Products that are used for commercial purposes; (7) Damage not reported within thirty (30) days of the occurrence or stains not reported within five (5) days of occurrence; (8) Products with removed, modified, or altered construction; (9) Clearance, floor model or “as is” products; (10) Natural characteristics or markings on fabric, leather, wood and marble; (11) Normal wear and tear; ) (12) Electronics are not covered; except for electronic parts or components that are a part of a Covered Product, (13) Damage caused by third-party repairs not authorized by Us/Administrator; (14) Mattress stains, discoloration, or odors, except as otherwise provided herein; (15) Fading or soiling; (16) Any other defects, damage, or stains not listed under “WHAT IS COVERED.”

 

RENEWAL: This Agreement is not renewable. DEDUCTIBLE: This Agreement has a $0 deductible. 

TRANSFERABILITY: This Agreement may be transferred without charge by the original purchaser to the new Covered Product’s owner. The Covered Product may be transferred by mailing a copy of this Agreement and Invoice to the Administrator, and providing the date of new ownership, new owner’s name, complete address, and telephone number.

TERRITORIES: The Agreement territory is limited to the United States of America, including the District of Columbia, only. It does not include Mexico, Canada or U.S. Territories including but not limited to Guam, Puerto Rico, or U.S. Virgin Islands.

SUBROGATION: If We pay or render service for a loss, We may require You to assign Us Your rights of recovery against others. We will not pay or render service for a loss if You impair these rights to recover. Your rights to recover from others may not be waived. You will be made whole, subject to the terms of this Agreement, before We retain any recoverable amount.

LIMITED APPLICABILITY OF THE FEDERAL MAGNUSON MOSS WARRANTY ACT: You agree and acknowledge that You have paid an additional fee for this Agreement that is separate and apart from the purchase price You paid for the Covered Product(s). Because of that separately stated consideration, You agree and acknowledge that this Agreement is not part of the basis of the bargain for Your purchase of the Covered Product(s). You further agree and acknowledge that We, along with the Administrator, are not the supplier of the Covered Product(s). Consequently, this Agreement is not a “written warranty” under the federal Magnuson Moss Warranty Act. As a result, this Agreement is not subject to the provisions of the Magnuson Moss Warranty Act that apply only to a “written warranty”.

 

LIMITATION OF LIABILITY: THIS AGREEMENT SETS OUT THE FULL EXTENT OF OUR RESPONSIBILITIES. NEITHER THE OBLIGOR NOR THE ADMINISTRATOR SHALL BE LIABLE FOR SPECIAL, INDIRECT, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES (INCLUDING, WITHOUT LIMITATION, DAMAGES FOR LOSS OF BUSINESS PROFITS, BUSINESS INTERRUPTION, EXPENSES ARISING OUT OF THIRD PARTY CLAIMS, LOSS OF USE OF THE COVERED PRODUCT, INCONVENIENCE, OR ANY OTHER LOSS), WHETHER OR NOT CAUSED BY OR RESULTING FROM BREACH OF CONTRACT, NEGLIGENCE, OR OTHER WRONGFUL ACT OR OMISSION, EVEN IF IT HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. NEITHER THE OBLIGOR NOR THE ADMINISTRATOR AUTHORIZE ANY PERSON, ENTITY OR SELLING RETAILER TO CREATE FOR THEM ANY OTHER OBLIGATION OR LIABILITY IN CONNECTION WITH THIS AGREEMENT.

 

PLEASE READ THIS DISPUTE RESOLUTION/ARBITRATION AGREEMENT AND CLASS ACTION WAIVER, INCLUDING THE OPT- OUT PROVISION, CAREFULLY TO UNDERSTAND YOUR RIGHTS. IT REQUIRES THAT CLAIMS (AS DEFINED BELOW) BE

RESOLVED SOLELY THROUGH BINDING ARBITRATION ON AN INDIVIDUAL BASIS, RATHER THAN BY A JURY OR IN A CLASS ACTION.

 

Arbitration is a method of resolving any Claim without filing a lawsuit. In this Arbitration Agreement and Class Action Waiver (collectively including all of this section of this Agreement), You, We, and the Administrator/Obligor (the “Parties”) are agreeing to submit any and all Claims to binding arbitration on an individual basis for resolution. This Arbitration Agreement and Class Action Waiver sets forth the terms and conditions of Our Agreement to binding arbitration. The Parties agree that any and all claims, disputes and controversies related in any way to this but not limited to claims related to the underlying transaction giving rise to this Agreement, or claims related to the sale, financing or fulfillment of this Agreement (collectively, “Claims”), shall be resolved by final and binding arbitration. “Claims” shall be given the broadest meaning possible and includes, without limitation, Claims arising under this Agreement, tort, statute, regulation, rule, ordinance or other rule of law or equity, and Claims against any of Our or the Administrator’s owners, shareholders, members, affiliates, subsidiaries, divisions, directors, officers, employees, representatives, agents, successors, or assigns. “Claims” does not include a statutory claim for public injunctive relief brought under any California statute enacted for a public reason, provided that You are a California resident or that You purchased Your Agreement in California. In arbitration, Claims are resolved by an arbitrator and not by a judge or jury. THE PARTIES, INCLUDING YOU, WAIVE ANY RIGHT TO HAVE CLAIMS DECIDED BY A JUDGE OR JURY. In addition, except as expressly stated in the Class Action Waiver or otherwise expressly stated herein, the arbitrator shall have exclusive authority to decide all issues related to the enforcement, applicability, scope, validity, and interpretation of this Arbitration Agreement, including but not limited to any unconscionability challenge or any other challenge that the Arbitration Agreement is void, voidable or otherwise invalid. Notwithstanding this Agreement to arbitrate, each of the Parties retains the right to seek remedies in small claims court to resolve any Claim, on an individual basis, within the jurisdiction of small claims court. You acknowledge Your understanding that all Parties hereunder are waiving their rights to go to court, except for small claims court, to resolve any Claims arising under or related to this Agreement. The Parties agree and acknowledge that the transaction evidenced by this Agreement affects interstate commerce. The Parties further agree that all issues relating to this Arbitration Agreement and Class Action Waiver, including its enforcement, scope, validity, interpretation, and implementation, will be determined pursuant to federal substantive law and the substantive and procedural provisions of the Federal Arbitration Act (“Act”), 9 U.S.C. §§ 1-16. If federal substantive law holds that state law should apply to any issue relating to this Arbitration Agreement and Class Action Waiver, then the law of the state where You purchased the Agreement shall apply, without regards to conflicts of law.

 

CLASS ACTION WAIVER. All Claims must be brought solely in an individual capacity, and not as a plaintiff or class member in any purported class action, collective action, representative action, mass action, private attorney general action or action on behalf of the general public, or similar proceeding (any such action is referred to herein as a “Class Action”). NO CLAIM WILL BE ARBITRATED ON A CLASS ACTION BASIS. The Parties, including You, expressly waive any right or ability to bring, assert, maintain, or participate as a class member in any Class Action in court, arbitration, or any other forum, and the right for anyone to do so on Your behalf. The arbitrator may not consolidate more than one person or entity’s claims, and may not otherwise preside over any Class Action. The arbitrator shall not have the authority to combine or aggregate multiple persons’ or entities’ Claims or discovery, to conduct a Class Action or to make an award to any person or entity not a party to the arbitration. Notwithstanding anything to the contrary, the Parties agree that the enforcement, applicability, scope, validity, and/or interpretation of this Class Action Waiver shall be decided by a court of competent jurisdiction and not by an arbitrator. If this Class Action Waiver is ruled unenforceable or is interpreted to not prevent a Class Action, then the Arbitration Agreement shall be null and void, and any Claims shall proceed in a court of law and not in arbitration. The Parties agree that if an arbitrator renders a decision regarding the enforcement, applicability, scope, validity, and/or interpretation of this Class Action Waiver, or determines that a Class Action may proceed in arbitration, then: (1) the arbitrator has exceeded his powers, pursuant to §10(a)(4) of the FAA, by taking such action; (2) either party may seek immediate review of that decision by a court of competent jurisdiction; and (3) a court of competent jurisdiction shall apply a “de novo” standard of review of that decision if such standard of review is allowed by the common law or statutes of that state. The Parties, including You, agree that if for any reason a Claim proceeds to Court, rather than arbitration, (1) the Claim will proceed solely on an individual, non-class, non-representative basis, and (2) no Party may be a class representative or class member or otherwise participate in any Class Action.

 

The arbitration shall be administered by the American Arbitration Association (“AAA”). The arbitration shall be conducted pursuant to the AAA Consumer Arbitration Rules (the “Code”). Information on AAA and a copy of the Code may be found at the following URL: American Arbitration Association, www.adr.org. The arbitration will be governed by federal substantive law and the substantive and procedural provisions of the Federal Arbitration Act (“Act”), 9 U.S.C. §§ 1-16. If federal substantive law holds that state law should apply to any issue relating to the arbitration, then the law of the state where You purchased the Agreement shall apply, without regards to conflicts of law. The arbitration will occur before a single, neutral arbitrator selected in accordance with the Code in effect at the time the arbitration is commenced. If Your total damage claims (not including attorney’s fees) do not exceed $25,000, then all Claims shall be resolved by the Code’s Procedures for the Resolution of Disputes through Document Submission, except that a Party may ask for a hearing or the arbitrator may decide that a hearing is necessary. If a hearing is held, You have a right to attend the arbitration hearing in person, and You may choose to have any arbitration hearing held in the county in which You live, the closest AAA location to Your residence, or via telephone. In the event that the specified arbitration forum is unavailable, the Parties may agree on a substitute arbitration forum. If the Parties cannot agree, a court of competent jurisdiction may appoint a substitute arbitration forum. For information about how to initiate arbitration with the AAA, the Parties may refer to the AAA Code and forms at www.adr.org . If You initiate arbitration with AAA, You must pay the AAA filing fee in an amount no greater than the fee You would have to pay if You filed a complaint in federal court. We will pay any remaining Costs of arbitration required by the Code (“Arbitration Costs”); however, if the arbitrator determines that any of Your claims are frivolous, You shall bear all of the Arbitration Costs. If We initiate arbitration against You, We will pay the AAA filing fee and the Arbitration Costs. Each party will pay his/her/its own attorney’s fees, as well as costs relating to proof and witnesses, regardless of who prevails, unless applicable law and/or the Code gives a party the right to recover any of those fees from the other party. An arbitration award may not be set aside except upon the limited circumstances set forth in the Federal Arbitration Act. An award in arbitration will be enforceable under the Federal Arbitration Act by any court having jurisdiction. The time for commencing an arbitration asserting any Claim shall be determined by reference to the applicable statute(s) of limitations, including the applicable rules governing the commencement of the limitations period, and a Claim in arbitration is barred to the same extent it would be barred if it were asserted in court of law or equity rather than in arbitration. If any portion of this Arbitration Agreement is deemed invalid or unenforceable, all the remaining portions of this Arbitration Agreement shall nevertheless remain valid and enforceable, provided, however, that if any portion of the Class Action Waiver is deemed invalid or unenforceable, then this Arbitration Agreement shall be invalidated and unenforceable in its entirety. In the event of a conflict or inconsistency between this Arbitration Agreement and Class Action Waiver and the other provisions of this Agreement or any other Agreement, this Arbitration

 

 

OPT-OUT PROVISION. YOU SHALL HAVE THE RIGHT TO OPT OUT OF THIS ARBITRATION AGREEMENT AND CLASS

ACTION WAIVER BY PROVIDING WRITTEN NOTICE OF YOUR INTENTION TO DO SO TO US WITHIN THIRTY (30) DAYS

OF THE PURCHASE OF THIS AGREEMENT

THE DATE OF PURCHASE BEING INDICATED ON YOUR AGREEMENT.

 

To opt out, You must send written notice to either: (1) 10751 Deerwood Park Blvd., Suite 200, Jacksonville, FL 32256, Attn: Legal or (2) legal@fortegra.com, with the subject line, “Arbitration/Class Action Waiver Opt Out.” You must include in Your opt out notice: (a) Your name and address; (b) the date You purchased Your Agreement; and (c) the Dealer/Seller. If You properly and timely opt out, then all Claims will be resolved in court rather than arbitration.

 

PRIVACY POLICY: It is Our policy to respect the privacy of Our customers. For information on Our privacy practices, please review Our privacy policy at www.fortegra.com.

 

CANCELLATION: You may cancel this Agreement for any reason at any time. If You cancel Your Agreement within thirty (30) days of receipt of Your Agreement, You must first return to the Selling Retailer or to the Administrator should the Selling Retailer not be available, and You shall receive a full refund of the Agreement purchase price. If You cancel after thirty (30) days of receipt of Your Agreement, You must first return to the Selling Retailer or to the Administrator should the Selling Retailer not be available, and You shall receive a refund equal to 90% of the unearned pro rata premium less any claims that have been paid or less the cost of repairs. If We cancel this Agreement, You will receive a refund equal to 100% of the unearned premium. We may not cancel this Agreement unless we provide evidence of fraud, material misrepresentation, or non-payment by You, or if required to do so by a regulatory authority. Notice of such cancellation will be in writing and provided to You at least thirty (30) days prior to cancellation. Any cancellation or termination of this Agreement, by either You or Us, shall not cancel or terminate the Arbitration Agreement and Class Action Waiver, which shall remain in effect (unless You opted out of the Arbitration

Agreement and Class Action Waiver in a timely and proper manner).