100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB3450

 

Introduced 2/16/2018, by Sen. Chapin Rose

 

SYNOPSIS AS INTRODUCED:
 
815 ILCS 505/2L

    Amends the Consumer Fraud and Deceptive Business Practices Act concerning warranties for used motor vehicles. Provides that only vehicle auctioneers licensed under the Illinois Vehicle Code, rather than all auctioneers that auction vehicles, are subject to the used vehicle warranty requirements of the Consumer Fraud and Deceptive Business Practices Act.


LRB100 18962 JLS 34212 b

 

 

A BILL FOR

 

SB3450LRB100 18962 JLS 34212 b

1    AN ACT concerning business.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Consumer Fraud and Deceptive Business
5Practices Act is amended by changing Section 2L as follows:
 
6    (815 ILCS 505/2L)
7    (Text of Section before amendment by P.A. 100-512)
8    Sec. 2L. Used motor vehicles; modification or disclaimer of
9implied warranty of merchantability limited.
10    (a) Any retail sale of a used motor vehicle made after July
111, 2017 (the effective date of Public Act 99-768) this
12amendatory Act of the 99th General Assembly to a consumer by a
13licensed vehicle dealer within the meaning of Chapter 5 of the
14Illinois Vehicle Code or by an auction company at an auction
15that is open to the general public is made subject to this
16Section.
17    (b) This Section does not apply to any of the following:
18        (1) a vehicle with more than 150,000 miles at the time
19    of sale;
20        (2) a vehicle with a title that has been branded
21    "rebuilt" or "flood";
22        (3) a vehicle with a gross vehicle weight rating of
23    8,000 pounds or more; or

 

 

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1        (4) a vehicle that is an antique vehicle, as defined in
2    the Illinois Vehicle Code, or that is a collector motor
3    vehicle.
4    (b-5) This Section does not apply to the sale of any
5vehicle for which the dealer offers an express warranty that
6provides coverage that is equal to or greater than the limited
7implied warranty of merchantability required under this
8Section 2L.
9    (c) Except as otherwise provided in this Section 2L, any
10sale of a used motor vehicle as described in subsection (a) may
11not exclude, modify, or disclaim the implied warranty of
12merchantability created under this Section 2L or limit the
13remedies for a breach of the warranty hereunder before midnight
14of the 15th calendar day after delivery of a used motor vehicle
15or until a used motor vehicle is driven 500 miles after
16delivery, whichever is earlier. In calculating time under this
17Section, a day on which the warranty is breached and all
18subsequent days in which the used motor vehicle fails to
19conform with the implied warranty of merchantability are
20excluded. In calculating distance under this Section, the miles
21driven to obtain or in connection with the repair, servicing,
22or testing of a used motor vehicle that fails to conform with
23the implied warranty of merchantability are excluded. An
24attempt to exclude, modify, or disclaim the implied warranty of
25merchantability or to limit the remedies for a breach of the
26warranty in violation of this Section renders a purchase

 

 

SB3450- 3 -LRB100 18962 JLS 34212 b

1agreement voidable at the option of the purchaser.
2    (d) An implied warranty of merchantability is met if a used
3motor vehicle functions for the purpose of ordinary
4transportation on the public highway and substantially free of
5a defect in a power train component. As used in this Section,
6"power train component" means the engine block, head, all
7internal engine parts, oil pan and gaskets, water pump, intake
8manifold, transmission, and all internal transmission parts,
9torque converter, drive shaft, universal joints, rear axle and
10all rear axle internal parts, and rear wheel bearings.
11    (e) The implied warranty of merchantability expires at
12midnight of the 15th calendar day after delivery of a used
13motor vehicle or when a used motor vehicle is driven 500 miles
14after delivery, whichever is earlier. In calculating time, a
15day on which the implied warranty of merchantability is
16breached is excluded and all subsequent days in which the used
17motor vehicle fails to conform with the warranty are also
18excluded. In calculating distance, the miles driven to or by
19the seller to obtain or in connection with the repair,
20servicing, or testing of a used motor vehicle that fails to
21conform with the implied warranty of merchantability are
22excluded. An implied warranty of merchantability does not
23extend to damage that occurs after the sale of the used motor
24vehicle that results from:
25        (1) off-road use;
26        (2) racing;

 

 

SB3450- 4 -LRB100 18962 JLS 34212 b

1        (3) towing;
2        (4) abuse;
3        (5) misuse;
4        (6) neglect;
5        (7) failure to perform regular maintenance; and
6        (8) failure to maintain adequate oil, coolant, and
7    other required fluids or lubricants.
8    (f) If the implied warranty of merchantability described in
9this Section is breached, the consumer shall give reasonable
10notice to the seller no later than 2 business days after the
11end of the statutory warranty period. Before the consumer
12exercises another remedy pursuant to Article 2 of the Uniform
13Commercial Code, the seller shall have a reasonable opportunity
14to repair the used motor vehicle. The consumer shall pay
15one-half of the cost of the first 2 repairs necessary to bring
16the used motor vehicle into compliance with the warranty. The
17payments by the consumer are limited to a maximum payment of
18$100 for each repair; however, the consumer shall only be
19responsible for a maximum payment of $100 if the consumer
20brings in the vehicle for a second repair for the same defect.
21Reasonable notice as defined in this Section shall include, but
22not be limited to:
23        (1) text, provided the seller has provided the consumer
24    with a cell phone number;
25        (2) phone call or message to the seller's business
26    phone number provided on the seller's bill of sale for the

 

 

SB3450- 5 -LRB100 18962 JLS 34212 b

1    purchase of the motor vehicle;
2        (3) in writing to the seller's address provided on the
3    seller's bill of sale for the purchase of the motor
4    vehicle;
5        (4) in person at the seller's address provided on the
6    seller's bill of sale for the purchase of the motor
7    vehicle.
8    (g) The maximum liability of a seller for repairs pursuant
9to this Section is limited to the purchase price paid for the
10used motor vehicle, to be refunded to the consumer or lender,
11as applicable, in exchange for return of the vehicle.
12    (h) An agreement for the sale of a used motor vehicle
13subject to this Section is voidable at the option of the
14consumer, unless it contains on its face or in a separate
15document the following conspicuous statement printed in
16boldface 10-point or larger type set off from the body of the
17agreement:
18    "Illinois law requires that this vehicle will be free of a
19defect in a power train component for 15 days or 500 miles
20after delivery, whichever is earlier, except with regard to
21particular defects disclosed on the first page of this
22agreement. "Power train component" means the engine block,
23head, all internal engine parts, oil pan and gaskets, water
24pump, intake manifold, transmission, and all internal
25transmission parts, torque converter, drive shaft, universal
26joints, rear axle and all rear axle internal parts, and rear

 

 

SB3450- 6 -LRB100 18962 JLS 34212 b

1wheel bearings. You (the consumer) will have to pay up to $100
2for each of the first 2 repairs if the warranty is violated.".
3    (i) The inclusion in the agreement of the statement
4prescribed in subsection (h) of this Section does not create an
5express warranty.
6    (j) A consumer of a used motor vehicle may waive the
7implied warranty of merchantability only for a particular
8defect in the vehicle, including, but not limited to, a rebuilt
9or flood-branded title and only if all of the following
10conditions are satisfied:
11        (1) the seller subject to this Section fully and
12    accurately discloses to the consumer that because of
13    circumstances unusual to the business, the used motor
14    vehicle has a particular defect;
15        (2) the consumer agrees to buy the used motor vehicle
16    after disclosure of the defect; and
17        (3) before the sale, the consumer indicates agreement
18    to the waiver by signing and dating the following
19    conspicuous statement that is printed on the first page of
20    the sales agreement or on a separate document in boldface
21    10-point or larger type and that is written in the language
22    in which the presentation was made:
23        "Attention consumer: sign here only if the seller has
24    told you that this vehicle has the following problem or
25    problems and you agree to buy the vehicle on those terms:
26    1. ......................................................

 

 

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1    2. ..................................................
2    3. ...................................................".
3    (k) It shall be an affirmative defense to any claim under
4this Section that:
5        (1) an alleged nonconformity does not substantially
6    impair the use and market value of the motor vehicle;
7        (2) a nonconformity is the result of abuse, neglect, or
8    unauthorized modifications or alterations of the motor
9    vehicle;
10        (3) a claim by a consumer was not filed in good faith;
11    or
12        (4) any other affirmative defense allowed by law.
13    (l) Other than the 15-day, 500-mile implied warranty of
14merchantability identified herein, a seller subject to this
15Section is not required to provide any further express or
16implied warranties to a purchasing consumer unless:
17        (1) the seller is required by federal or State law to
18    provide a further express or implied warranty; or
19        (2) the seller fails to fully inform and disclose to
20    the consumer that the vehicle is being sold without any
21    further express or implied warranties, other than the 15
22    day, 500 mile implied warranty of merchantability
23    identified in this Section.
24    (m) Any person who violates this Section commits an
25unlawful practice within the meaning of this Act.
26(Source: P.A. 99-768, eff. 7-1-17; 100-4, eff. 7-1-17; revised

 

 

SB3450- 8 -LRB100 18962 JLS 34212 b

110-12-17.)
 
2    (Text of Section after amendment by P.A. 100-512)
3    Sec. 2L. Used motor vehicles; modification or disclaimer of
4implied warranty of merchantability limited.
5    (a) Any retail sale of a used motor vehicle made after July
61, 2017 (the effective date of Public Act 99-768) this
7amendatory Act of the 99th General Assembly to a consumer by a
8licensed vehicle dealer within the meaning of Chapter 5 of the
9Illinois Vehicle Code or by a vehicle auctioneer licensed under
10the Illinois Vehicle Code an auction company at an auction that
11is open to the general public is made subject to this Section.
12    (b) This Section does not apply to any of the following:
13        (1) a vehicle with more than 150,000 miles at the time
14    of sale;
15        (2) a vehicle with a title that has been branded
16    "rebuilt" or "flood";
17        (3) a vehicle with a gross vehicle weight rating of
18    8,000 pounds or more; or
19        (4) a vehicle that is an antique vehicle, as defined in
20    the Illinois Vehicle Code, or that is a collector motor
21    vehicle.
22    (b-5) This Section does not apply to the sale of any
23vehicle for which the dealer offers an express warranty that
24provides coverage that is equal to or greater than the limited
25implied warranty of merchantability required under this

 

 

SB3450- 9 -LRB100 18962 JLS 34212 b

1Section 2L.
2    (b-6) (b-5) This Section does not apply to forfeited
3vehicles sold at auction by or on behalf of the Department of
4State Police.
5    (c) Except as otherwise provided in this Section 2L, any
6sale of a used motor vehicle as described in subsection (a) may
7not exclude, modify, or disclaim the implied warranty of
8merchantability created under this Section 2L or limit the
9remedies for a breach of the warranty hereunder before midnight
10of the 15th calendar day after delivery of a used motor vehicle
11or until a used motor vehicle is driven 500 miles after
12delivery, whichever is earlier. In calculating time under this
13Section, a day on which the warranty is breached and all
14subsequent days in which the used motor vehicle fails to
15conform with the implied warranty of merchantability are
16excluded. In calculating distance under this Section, the miles
17driven to obtain or in connection with the repair, servicing,
18or testing of a used motor vehicle that fails to conform with
19the implied warranty of merchantability are excluded. An
20attempt to exclude, modify, or disclaim the implied warranty of
21merchantability or to limit the remedies for a breach of the
22warranty in violation of this Section renders a purchase
23agreement voidable at the option of the purchaser.
24    (d) An implied warranty of merchantability is met if a used
25motor vehicle functions for the purpose of ordinary
26transportation on the public highway and substantially free of

 

 

SB3450- 10 -LRB100 18962 JLS 34212 b

1a defect in a power train component. As used in this Section,
2"power train component" means the engine block, head, all
3internal engine parts, oil pan and gaskets, water pump, intake
4manifold, transmission, and all internal transmission parts,
5torque converter, drive shaft, universal joints, rear axle and
6all rear axle internal parts, and rear wheel bearings.
7    (e) The implied warranty of merchantability expires at
8midnight of the 15th calendar day after delivery of a used
9motor vehicle or when a used motor vehicle is driven 500 miles
10after delivery, whichever is earlier. In calculating time, a
11day on which the implied warranty of merchantability is
12breached is excluded and all subsequent days in which the used
13motor vehicle fails to conform with the warranty are also
14excluded. In calculating distance, the miles driven to or by
15the seller to obtain or in connection with the repair,
16servicing, or testing of a used motor vehicle that fails to
17conform with the implied warranty of merchantability are
18excluded. An implied warranty of merchantability does not
19extend to damage that occurs after the sale of the used motor
20vehicle that results from:
21        (1) off-road use;
22        (2) racing;
23        (3) towing;
24        (4) abuse;
25        (5) misuse;
26        (6) neglect;

 

 

SB3450- 11 -LRB100 18962 JLS 34212 b

1        (7) failure to perform regular maintenance; and
2        (8) failure to maintain adequate oil, coolant, and
3    other required fluids or lubricants.
4    (f) If the implied warranty of merchantability described in
5this Section is breached, the consumer shall give reasonable
6notice to the seller no later than 2 business days after the
7end of the statutory warranty period. Before the consumer
8exercises another remedy pursuant to Article 2 of the Uniform
9Commercial Code, the seller shall have a reasonable opportunity
10to repair the used motor vehicle. The consumer shall pay
11one-half of the cost of the first 2 repairs necessary to bring
12the used motor vehicle into compliance with the warranty. The
13payments by the consumer are limited to a maximum payment of
14$100 for each repair; however, the consumer shall only be
15responsible for a maximum payment of $100 if the consumer
16brings in the vehicle for a second repair for the same defect.
17Reasonable notice as defined in this Section shall include, but
18not be limited to:
19        (1) text, provided the seller has provided the consumer
20    with a cell phone number;
21        (2) phone call or message to the seller's business
22    phone number provided on the seller's bill of sale for the
23    purchase of the motor vehicle;
24        (3) in writing to the seller's address provided on the
25    seller's bill of sale for the purchase of the motor
26    vehicle;

 

 

SB3450- 12 -LRB100 18962 JLS 34212 b

1        (4) in person at the seller's address provided on the
2    seller's bill of sale for the purchase of the motor
3    vehicle.
4    (g) The maximum liability of a seller for repairs pursuant
5to this Section is limited to the purchase price paid for the
6used motor vehicle, to be refunded to the consumer or lender,
7as applicable, in exchange for return of the vehicle.
8    (h) An agreement for the sale of a used motor vehicle
9subject to this Section is voidable at the option of the
10consumer, unless it contains on its face or in a separate
11document the following conspicuous statement printed in
12boldface 10-point or larger type set off from the body of the
13agreement:
14    "Illinois law requires that this vehicle will be free of a
15defect in a power train component for 15 days or 500 miles
16after delivery, whichever is earlier, except with regard to
17particular defects disclosed on the first page of this
18agreement. "Power train component" means the engine block,
19head, all internal engine parts, oil pan and gaskets, water
20pump, intake manifold, transmission, and all internal
21transmission parts, torque converter, drive shaft, universal
22joints, rear axle and all rear axle internal parts, and rear
23wheel bearings. You (the consumer) will have to pay up to $100
24for each of the first 2 repairs if the warranty is violated.".
25    (i) The inclusion in the agreement of the statement
26prescribed in subsection (h) of this Section does not create an

 

 

SB3450- 13 -LRB100 18962 JLS 34212 b

1express warranty.
2    (j) A consumer of a used motor vehicle may waive the
3implied warranty of merchantability only for a particular
4defect in the vehicle, including, but not limited to, a rebuilt
5or flood-branded title and only if all of the following
6conditions are satisfied:
7        (1) the seller subject to this Section fully and
8    accurately discloses to the consumer that because of
9    circumstances unusual to the business, the used motor
10    vehicle has a particular defect;
11        (2) the consumer agrees to buy the used motor vehicle
12    after disclosure of the defect; and
13        (3) before the sale, the consumer indicates agreement
14    to the waiver by signing and dating the following
15    conspicuous statement that is printed on the first page of
16    the sales agreement or on a separate document in boldface
17    10-point or larger type and that is written in the language
18    in which the presentation was made:
19        "Attention consumer: sign here only if the seller has
20    told you that this vehicle has the following problem or
21    problems and you agree to buy the vehicle on those terms:
22    1. ......................................................
23    2. ..................................................
24    3. ...................................................".
25    (k) It shall be an affirmative defense to any claim under
26this Section that:

 

 

SB3450- 14 -LRB100 18962 JLS 34212 b

1        (1) an alleged nonconformity does not substantially
2    impair the use and market value of the motor vehicle;
3        (2) a nonconformity is the result of abuse, neglect, or
4    unauthorized modifications or alterations of the motor
5    vehicle;
6        (3) a claim by a consumer was not filed in good faith;
7    or
8        (4) any other affirmative defense allowed by law.
9    (l) Other than the 15-day, 500-mile implied warranty of
10merchantability identified herein, a seller subject to this
11Section is not required to provide any further express or
12implied warranties to a purchasing consumer unless:
13        (1) the seller is required by federal or State law to
14    provide a further express or implied warranty; or
15        (2) the seller fails to fully inform and disclose to
16    the consumer that the vehicle is being sold without any
17    further express or implied warranties, other than the 15
18    day, 500 mile implied warranty of merchantability
19    identified in this Section.
20    (m) Any person who violates this Section commits an
21unlawful practice within the meaning of this Act.
22(Source: P.A. 99-768, eff. 7-1-17; 100-4, eff. 7-1-17; 100-512,
23eff. 7-1-18; revised 10-12-17.)
 
24    Section 95. No acceleration or delay. Where this Act makes
25changes in a statute that is represented in this Act by text

 

 

SB3450- 15 -LRB100 18962 JLS 34212 b

1that is not yet or no longer in effect (for example, a Section
2represented by multiple versions), the use of that text does
3not accelerate or delay the taking effect of (i) the changes
4made by this Act or (ii) provisions derived from any other
5Public Act.