MICHIGAN CONSUMER PROTECTION ACT
Act 331 of 1976
445.902 Definitions.
Sec. 2.
(1) As used in this act:
(a) Subject to subsection (2), "business opportunity" means the sale or lease of any products, equipment, supplies, or services for the purpose of enabling the purchaser to start a business, and in which the seller represents 1 or more of the following:
(i) That the seller will provide locations or assist the purchaser in finding locations for the use or operation of vending machines, racks, display cases, or other similar devices, or currency operated amusement machines or devices, on premises neither owned nor leased by the purchaser or seller.
(ii) That the seller may, in the ordinary course of business, purchase any or all products made, produced, fabricated, grown, bred, or modified by the purchaser using whole or in part the supplies, services, or chattels sold to the purchaser.
(iii) The seller guarantees that the purchaser will derive income from the business opportunity that exceeds the price paid for the business opportunity; or that the seller will refund all or part of the price paid for the business opportunity, or repurchase any of the products, equipment, supplies, or chattels supplied by the seller, if the purchaser is unsatisfied with the business opportunity. As used in this subparagraph, "guarantee" means a written or oral representation that would cause a reasonable person in the purchaser's position to believe that income is assured.
(iv) That the seller will provide a sales program or marketing program which will enable the purchaser to derive income from the business opportunity that exceeds the price paid for the business opportunity. This subparagraph does not apply to the sale of a marketing program made in conjunction with the licensing of a federally registered trademark or a federally registered service mark, or to the sale of a business opportunity for which the purchaser pays less than $500.00 in total for the business opportunity from any time before the date of sale to any time within 6 months after the date of sale.
(b) "Documentary material" includes the original or copy of a book, record, report, memorandum, paper, communication, tabulation, map, chart, photograph, mechanical transcription, or other tangible document or recording, wherever situated.
(c) "Performing group" means a vocal or instrumental group seeking to use the name of another group that has previously released a commercial sound recording under that name.
(d) "Person" means an individual, corporation, limited liability company, trust, partnership, incorporated or unincorporated association, or other legal entity.
(e) "Recording group" means a vocal or instrumental group that meets both of the following:
(i) At least 1 of the members of the group has previously released a commercial sound recording under the group's name.
(ii) At least 1 of the members of the group has a legal right to use the group's name, by virtue of use or operation under the group's name without abandoning the name of or affiliation with the group.
(f) "Sound recording" means a work that results from the fixation on a material object of a series of musical, spoken, or other sounds regardless of the nature of the material object, such as a disk, tape, or other phono-record, in which the sounds are embodied.
(g) "Trade or commerce" means the conduct of a business providing goods, property, or service primarily for personal, family, or household purposes and includes the advertising, solicitation, offering for sale or rent, sale, lease, or distribution of a service or property, tangible or intangible, real, personal, or mixed, or any other article, or a business opportunity. "Trade or commerce" does not include the purchase or sale of a franchise, as defined in section 2 of the franchise investment law, 1974 PA 269, MCL 445.1502, but does include a pyramid promotional scheme as defined in section 2 of the pyramid promotional scheme act, MCL 445.2582.
(2) As used in this act, "business opportunity" does not include a sale of a franchise as defined in section 2 of the franchise investment law, 1974 PA 269, MCL 445.1502, or the sale of an ongoing business if the owner of the business sells and intends to sell only that single business opportunity.
History: 1976, Act 331, Eff. Apr. 1, 1977 ;-- Am. 1984, Act 91, Imd. Eff. Apr. 20, 1984 ;-- Am. 2006, Act 508, Imd. Eff. Dec. 29, 2006 ;-- Am. 2018, Act 189, Eff. Sept. 11, 2018
Notes of Decisions
Dell v. Citizens Ins. Co. of Am., 880 N.W.2d 280 (Mich. Ct. App. 2015).
· cites it 4× “903(1)(d) (“Representing that goods are new if they are deteriorated, altered, reconditioned, used, or secondhand”); (l)(e) (“Representing that goods or services are of a particular standard, quality, or grade, or that goods are of a particular style or model, if they are of…”
Rodriguez Ex Rel. Rodriguez v. Berrybrook Farms, Inc., 672 F. Supp. 1009 (W.D. Mich. 1987).
· cites it 7× “” “Trade or commerce” means the conduct of a business providing goods, property, or service primarily for personal, family, or household purposes and includes the advertising, solicitation, offering for sale or rent, sale, lease, or distribution of a service or property,…”
Liss v. Lewiston-Richards, Inc, 732 N.W.2d 514 (Mich. 2007).
· cites it 4× “In fact, during this period, similar "laws of broad applicability [were] enacted in every state and the District of Columbia prohibiting unfair or deceptive acts and practices and unfair competition in the marketplace.”
Smith v. Globe Life Ins., 597 N.W.2d 28 (Mich. 1999).
· cites it 3× “] In this case, plaintiff, daughter of the deceased insured, is “a person” as defined by MCL 445.902(c); MSA 19.418(2)(c), which includes a natural person.”
Zine v. Chrysler Corp., 600 N.W.2d 384 (Mich. Ct. App. 1999).
· cites it 3× “CATALLO Because “personal” means “of or relating to a particular person” and the mcpa defines “person” as “a natural person, corporation, trust, partnership, incorporated or unincorporated association, or other legal entity,” MCL 445.902(c); MSA 19.418(2)(c), this Court has…”
Gorman v. Am. Honda Motor Co., 839 N.W.2d 223 (Mich. Ct. App. 2013).
“” MCL 445.902(l)(g). In this case, plaintiff alleged regarding her MCPA claim that defendants generally failed to inform her regarding purported defects in the vehicle that she purchased or failed to comply with express and implied warranties to repair defects.”
Action Auto Glass v. Auto Glass Specialists, 134 F. Supp. 2d 897 (W.D. Mich. 2001).
· cites it 5× “§ 445.902(c). While it is true that the legislature used the word “person” to describe who may be a plaintiff as well as wrho may be a defendant, it is also true that had the legislature intended to allow only individuals to sue under the MCPA, it could have easily used the term…”
Williamson v. Amrani, 152 P.3d 60 (Kan. 2007).
· cites it 2× “" Mich. Comp. Laws § 445.902 (d) (2002). See also Wash.”
Woodman v. KERA, LLC, 760 N.W.2d 641 (Mich. Ct. App. 2008).
· cites it 2× “"Trade or commerce" is defined as the "conduct of a business providing goods, property, or service primarily for personal, family, or household purposes and includes the advertising, solicitation, offering for sale or rent, sale, lease, or distribution of a service or property,…”
Slobin v. Henry Ford Health Care, 666 N.W.2d 632 (Mich. 2003).
· cites it 2× “MCL 445.902(d) defines the term in relevant part as follows: "Trade or commerce" means the conduct of a business providing goods, property, or service primarily for personal, family, or household purposes .”
John Labatt Ltd. v. Molson Breweries, 853 F. Supp. 965 (E.D. Mich. 1994).
· cites it 4× “331 of the Public Acts of 1976, entitled “An act to prohibit certain methods, acts, and practices in trade or commerce; to prescribe certain powers and duties; to provide for certain remedies, damages, and penalties; to provide for the promulgation of rules; to provide for…”
— Mich. Comp. Laws § 445.902(1)(d) — 3 cases
— Mich. Comp. Laws § 445.902(1)(g) — 14 cases
Liss v. Lewiston-Richards, Inc, 732 N.W.2d 514 (Mich. 2007).
“In fact, during this period, similar "laws of broad applicability [were] enacted in every state and the District of Columbia prohibiting unfair or deceptive acts and practices and unfair competition in the marketplace.”
Dell v. Citizens Ins. Co. of Am., 880 N.W.2d 280 (Mich. Ct. App. 2015).
“903(1)(d) (“Representing that goods are new if they are deteriorated, altered, reconditioned, used, or secondhand”); (l)(e) (“Representing that goods or services are of a particular standard, quality, or grade, or that goods are of a particular style or model, if they are of…”
Woodman v. KERA, LLC, 760 N.W.2d 641 (Mich. Ct. App. 2008).
“"Trade or commerce" is defined as the "conduct of a business providing goods, property, or service primarily for personal, family, or household purposes and includes the advertising, solicitation, offering for sale or rent, sale, lease, or distribution of a service or property,…”
— Mich. Comp. Laws § 445.902(b) — 2 cases
— Mich. Comp. Laws § 445.902(c) — 11 cases
Zine v. Chrysler Corp., 600 N.W.2d 384 (Mich. Ct. App. 1999).
“CATALLO Because “personal” means “of or relating to a particular person” and the mcpa defines “person” as “a natural person, corporation, trust, partnership, incorporated or unincorporated association, or other legal entity,” MCL 445.902(c); MSA 19.418(2)(c), this Court has…”
Smith v. Globe Life Ins., 597 N.W.2d 28 (Mich. 1999).
“] In this case, plaintiff, daughter of the deceased insured, is “a person” as defined by MCL 445.902(c); MSA 19.418(2)(c), which includes a natural person.”
— Mich. Comp. Laws § 445.902(d) — 25 cases
Rodriguez Ex Rel. Rodriguez v. Berrybrook Farms, Inc., 672 F. Supp. 1009 (W.D. Mich. 1987).
“” “Trade or commerce” means the conduct of a business providing goods, property, or service primarily for personal, family, or household purposes and includes the advertising, solicitation, offering for sale or rent, sale, lease, or distribution of a service or property,…”
Smith v. Globe Life Ins., 597 N.W.2d 28 (Mich. 1999).
“] In this case, plaintiff, daughter of the deceased insured, is “a person” as defined by MCL 445.902(c); MSA 19.418(2)(c), which includes a natural person.”
Slobin v. Henry Ford Health Care, 666 N.W.2d 632 (Mich. 2003).
“MCL 445.902(d) defines the term in relevant part as follows: "Trade or commerce" means the conduct of a business providing goods, property, or service primarily for personal, family, or household purposes .”
Action Auto Glass v. Auto Glass Specialists, 134 F. Supp. 2d 897 (W.D. Mich. 2001).
“§ 445.902(c). While it is true that the legislature used the word “person” to describe who may be a plaintiff as well as wrho may be a defendant, it is also true that had the legislature intended to allow only individuals to sue under the MCPA, it could have easily used the term…”
— Mich. Comp. Laws § 445.902(g) — 9 cases
Liss v. Lewiston-Richards, Inc, 732 N.W.2d 514 (Mich. 2007).
“In fact, during this period, similar "laws of broad applicability [were] enacted in every state and the District of Columbia prohibiting unfair or deceptive acts and practices and unfair competition in the marketplace.”
— Mich. Comp. Laws § 445.902(l)(g) — 4 cases
Dell v. Citizens Ins. Co. of Am., 880 N.W.2d 280 (Mich. Ct. App. 2015).
“903(1)(d) (“Representing that goods are new if they are deteriorated, altered, reconditioned, used, or secondhand”); (l)(e) (“Representing that goods or services are of a particular standard, quality, or grade, or that goods are of a particular style or model, if they are of…”
Gorman v. Am. Honda Motor Co., 839 N.W.2d 223 (Mich. Ct. App. 2013).
“” MCL 445.902(l)(g). In this case, plaintiff alleged regarding her MCPA claim that defendants generally failed to inform her regarding purported defects in the vehicle that she purchased or failed to comply with express and implied warranties to repair defects.”
Woodman v. KERA, LLC, 760 N.W.2d 641 (Mich. Ct. App. 2008).
“"Trade or commerce" is defined as the "conduct of a business providing goods, property, or service primarily for personal, family, or household purposes and includes the advertising, solicitation, offering for sale or rent, sale, lease, or distribution of a service or property,…”
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