Your copier is down. The dealer says the part is on backorder. Your lease payment is due next week. And you are wondering: do I have to keep paying for a machine that does not work?
The answer is complicated, and the rights you have depend on your specific contracts. But you have more leverage than most businesses realize. Here are your rights and how to enforce them.
Right 1: Timely Service Under Your Service Agreement
Your service agreement specifies response times and resolution commitments. Common terms include 4-hour response time during business hours, next-business-day on-site service, and resolution within 2 business days for standard issues. If the dealer is not meeting these commitments, they are in breach of the service agreement. Document every instance where the response time or resolution time exceeds what the agreement specifies.
Right 2: A Functioning Machine
The implied warranty of merchantability (unless disclaimed in your contract) means the equipment must perform its intended function. A copier that does not copy is not merchantable. This basic right exists under the UCC regardless of what your service agreement says about repair timelines.
If the copier has been non-functional for an extended period (generally 10 or more consecutive business days), the equipment is arguably not meeting the merchantability standard. This can be grounds for demanding a replacement or terminating the lease.
Right 3: Compensation for Business Losses
When a copier breakdown causes measurable business losses, you may be entitled to recover those costs from the dealer. Document your outsourcing expenses (print shop receipts, costs of using other businesses’ equipment), employee downtime directly attributable to the copier failure, missed deadlines or lost business that resulted from the breakdown, and any emergency equipment rental costs.
Most service agreements limit the dealer’s liability, so review yours carefully. But even with limitations, documented business losses strengthen your negotiating position when demanding a resolution.
Right 4: Lease Termination for Equipment Failure
The lease and service agreement are separate contracts, but a severe service failure can justify lease termination under certain conditions. If the equipment is fundamentally defective and cannot be repaired to working condition, or if the dealer has abandoned their service obligation, the purpose of the lease (providing functional equipment) has been frustrated.
This is a legal argument that varies by state and requires documentation of sustained equipment failure and inadequate service response. Consult a business attorney before pursuing lease termination on these grounds.
Right 5: Continue Payments Under Protest
You have the right to continue making lease payments while formally protesting the equipment condition. Send a written letter to the leasing company stating that payments are being made “under protest” due to equipment failure and inadequate service. This preserves your credit while creating a legal record of the dispute.
What Most Guides Miss: The Regulatory Complaint Option
Most businesses do not realize that copier dealers are subject to state business regulations and licensing requirements. Filing a complaint with your state’s Attorney General, Department of Consumer Affairs, or Better Business Bureau creates a formal record that the dealer must respond to.
These complaints carry weight because dealers need clean regulatory records to maintain manufacturer certifications and bid on government contracts. A single BBB complaint may not move the needle, but a formal Attorney General complaint gets attention. The complaint itself costs nothing to file and often produces a faster response than months of phone calls and emails to the dealer. For more on handling broken leased copiers, see our broken copier payment guide, and understand all your exit options at our getting out of a copier lease guide.
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