Volvo: Check Engine Light, electronic issue, light car

Question
Check engine light is on.  Mechanic claims that gear shift selector sensor is bad and therefore computer cannot determine which gear car is in, thus causing check engine light.  Car running fine, mechanic explains that problem is electronic issue, not mechanical. Mechanic recommends replacing sensor ($280 + 3 hours labor).  Does this sound plausible?

Answer
Marvin,
I would guess by the quotes you gave to me that the car is an 850 or S/V 70. I have seen many of those cars in need of the Gear Position Sensor. If there is not any shifting problems noticed, have the codes eraced and drive the car to see if the light and code returns. Perhaps a glitch in the system. It also sound as if you do not trust your tech. How about finding a shop that knows the Volvo and get a second opinion? Ask questions and start getting to know the people at the shop so when your in need of good techs you can count on these people to answer all questions and help you to make a good decision on the repairs. Many times I clear a code and have the owner drive the car to see if the code returns. That way I can feel better about making a repair that will in deed fix the car. I often find a glitch in the system and clearing the codes sets all things straight.