Full Text of HB4377 99th General Assembly
HB4377 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 HB4377 Introduced , by Rep. Rita Mayfield SYNOPSIS AS INTRODUCED: |
| 815 ILCS 505/2L | from Ch. 121 1/2, par. 262L |
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Amends the Consumer Fraud and Deceptive Business Practices Act. Removes provisions requiring all new and used motor vehicle dealers to pay a percentage of certain repairs for power train components. Adds provisions regarding used motor vehicle dealers and auction companies. Provides that used motor vehicle dealers and certain auction companies may not exclude, modify, or disclaim an implied warranty of merchantability before the expiration of the 15th calendar day after delivery of the used motor vehicle or before the used motor vehicle is driven 500 miles after delivery, whichever occurs first. Exempts the sale of antique and collector vehicles from the new provisions. Provides that an implied warranty of merchantability does not extend to damage that occurs after the sale of the used motor vehicle that results from certain conduct, including: off-road use, racing, neglect, and failure to perform regular maintenance. Sets forth remedies and defenses.
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| | A BILL FOR |
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| 1 | | AN ACT concerning business.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Consumer Fraud and Deceptive Business | 5 | | Practices Act is amended by changing Section 2L as follows:
| 6 | | (815 ILCS 505/2L) (from Ch. 121 1/2, par. 262L)
| 7 | | Sec. 2L. Used motor vehicles; modification or disclaimer of | 8 | | implied warranty of merchantability limited. | 9 | | (a) Any retail sale of a motor vehicle made after the | 10 | | effective date of this amendatory Act of the 99th General | 11 | | Assembly January 1,
1968 to a consumer by a new motor vehicle | 12 | | dealer or used motor vehicle
dealer within the meaning of | 13 | | Chapter 5 of the Illinois Vehicle Code is
made subject to this | 14 | | Section.
| 15 | | (b) Any motor vehicle sale conducted by a motor vehicle | 16 | | dealer licensed under Section 5-102 of the Illinois Vehicle | 17 | | Code or by an auction company at an auction that is open to the | 18 | | general public may not exclude, modify, or disclaim the implied | 19 | | warranty of merchantability prescribed in Section 2-314 of the | 20 | | Uniform Commercial Code or limit the remedies for a breach of | 21 | | the warranty before midnight of the 15th calendar day after | 22 | | delivery of a used motor vehicle or until a used motor vehicle | 23 | | is driven 500 miles after delivery, whichever is earlier. In |
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| 1 | | calculating time under this Section, a day on which the | 2 | | warranty is breached and all subsequent days in which the used | 3 | | motor vehicle fails to conform with the implied warranty of | 4 | | merchantability are excluded. In calculating distance under | 5 | | this Section, the miles driven to obtain or in connection with | 6 | | the repair, servicing, or testing of a used motor vehicle that | 7 | | fails to conform with the implied warranty of merchantability | 8 | | are excluded. An attempt to exclude, modify, or disclaim the | 9 | | implied warranty of merchantability or to limit the remedies | 10 | | for a breach of the warranty in violation of this Section | 11 | | renders a purchase agreement voidable at the option of the | 12 | | purchaser. | 13 | | (c) An implied warranty of merchantability is met if a used | 14 | | motor vehicle functions substantially free of a defect that | 15 | | significantly limits the use of the used motor vehicle for the | 16 | | ordinary purpose of transportation on any public highway. The | 17 | | implied warranty of merchantability expires at midnight of the | 18 | | 15th calendar day after delivery of a used motor vehicle or | 19 | | until a used motor vehicle is driven 500 miles after delivery, | 20 | | whichever is earlier. In calculating time, a day on which the | 21 | | implied warranty of merchantability is breached is excluded and | 22 | | all subsequent days in which the used motor vehicle fails to | 23 | | conform with the warranty are also excluded. In calculating | 24 | | distance, the miles driven to obtain or in connection with the | 25 | | repair, servicing, or testing of a used motor vehicle that | 26 | | fails to conform with the implied warranty of merchantability |
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| 1 | | are excluded. | 2 | | (d) An implied warranty of merchantability does not extend | 3 | | to damage that occurs after the sale of the used motor vehicle | 4 | | that results from: | 5 | | (1) off-road use; | 6 | | (2) racing; | 7 | | (3) towing; | 8 | | (4) abuse; | 9 | | (5) misuse; | 10 | | (6) neglect; | 11 | | (7) failure to perform regular maintenance; and | 12 | | (8) failure to maintain adequate oil, coolant, and | 13 | | other required fluids or lubricants. | 14 | | (e) If the implied warranty of merchantability described in | 15 | | this Section is breached, the consumer shall give reasonable | 16 | | notice to the seller within 15 days after the date of the | 17 | | breach. Before the consumer exercises another remedy pursuant | 18 | | to Article 2 of the Uniform Commercial Code, the seller shall | 19 | | have a reasonable opportunity to repair the used motor vehicle. | 20 | | The consumer shall pay one-half of the cost of the first 2 | 21 | | repairs necessary to bring the used motor vehicle into | 22 | | compliance with the warranty. The payments by the consumer are | 23 | | limited to a maximum payment of $25 for each repair. | 24 | | (f) The maximum liability of a seller for repairs pursuant | 25 | | to this Section is limited to the purchase price paid for the | 26 | | used motor vehicle, to be refunded to the consumer or lender, |
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| 1 | | as applicable, in exchange for return of the vehicle. | 2 | | (g) An agreement for the sale of a used motor vehicle by a | 3 | | used motor vehicle dealer subject to this Section is voidable | 4 | | at the option of the consumer, unless it contains on its face | 5 | | the following conspicuous statement printed in boldface, | 6 | | 10-point, or larger type set off from the body of the | 7 | | agreement: | 8 | | "Illinois law requires that this vehicle will be fit for | 9 | | the ordinary purposes for which the vehicle is used for 15 days | 10 | | or 500 miles after delivery, whichever is earlier, except with | 11 | | regard to particular defects disclosed on the first page of | 12 | | this agreement. You (the consumer) will have to pay up to $25 | 13 | | for each of the first 2 repairs if the warranty is violated.". | 14 | | (h) The inclusion in the agreement of the statement | 15 | | prescribed in subsection (g) of this Section does not create an | 16 | | express warranty. | 17 | | (i) A consumer of a used motor vehicle may waive the | 18 | | implied warranty of merchantability only for a particular | 19 | | defect in the vehicle and only if all of the following | 20 | | conditions are satisfied: | 21 | | (1) the motor vehicle dealer subject to this Section | 22 | | fully and accurately discloses to the consumer that because | 23 | | of circumstances unusual to the business of the used motor | 24 | | vehicle dealer, the used motor vehicle has a particular | 25 | | defect; | 26 | | (2) the consumer agrees to buy the used motor vehicle |
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| 1 | | after disclosure of the defect; and | 2 | | (3) before the sale, the consumer indicates agreement | 3 | | to the waiver by signing and dating the following | 4 | | conspicuous statement that is printed on the first page of | 5 | | the sales agreement or on a separate document in boldface, | 6 | | 10-point, or larger type and that is written in the | 7 | | language in which the presentation was made: | 8 | | "Attention consumer: sign here only if the dealer has told | 9 | | you that this vehicle has the following problem or problems and | 10 | | you agree to buy the vehicle on those terms: | 11 | | 1......................................................... | 12 | | 2......................................................... | 13 | | 3.........................................................". | 14 | | (j) A used motor vehicle dealer subject to this Section has | 15 | | the burden to prove by a preponderance of the evidence that the | 16 | | dealer complied with subsection (i) of this Section. | 17 | | (k) A consumer or seller that is aggrieved by a transaction | 18 | | pursuant to this Section and that seeks a legal remedy shall | 19 | | pursue an appropriate remedy prescribed in Article 2 of the | 20 | | Uniform Commercial Code and shall comply with the requirements | 21 | | prescribed in that Article. | 22 | | (l) It shall be an affirmative defense to any claim under | 23 | | this Section that: | 24 | | (1) an alleged nonconformity does not substantially | 25 | | impair the use and market value of the motor vehicle; | 26 | | (2) a nonconformity is the result of abuse, neglect, or |
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| 1 | | unauthorized modifications or alterations of the motor | 2 | | vehicle; | 3 | | (3) a claim by a consumer was not filed in good faith; | 4 | | or | 5 | | (4) any other affirmative defense allowed by law. | 6 | | (m) Other than the 15 day, 500 mile implied warranty of | 7 | | merchantability identified herein, a motor vehicle dealer is | 8 | | not required to provide any further express or implied | 9 | | warranties to a purchasing consumer unless: | 10 | | (1) the motor vehicle dealer is required by federal or | 11 | | State law to provide a further express or implied warranty; | 12 | | or | 13 | | (2) the motor vehicle dealer fully informs and | 14 | | discloses to the consumer that the vehicle is being sold | 15 | | without any further express or implied warranties, other | 16 | | than the 15 day mile implied warranty of merchantability | 17 | | identified in this Section. | 18 | | (n) This Section does not apply to the sale of antique | 19 | | vehicles, as defined in the Illinois Vehicle Code, or to | 20 | | collector motor vehicles. | 21 | | (a) The dealer is liable to the purchasing consumer for the
| 22 | | following share of the cost of the repair of Power Train | 23 | | components for
a period of 30 days from date of delivery, | 24 | | unless the repairs have
become necessary by abuse, negligence, | 25 | | or collision. The burden of
establishing that a claim for | 26 | | repairs is not within this Section shall
be on the selling |
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| 1 | | dealer. The dealer's share of such repair costs is:
| 2 | | (1) in the case of a motor vehicle which is not more than 2 | 3 | | years
old, 50%;
| 4 | | (2) in the case of a motor vehicle which is 2 or more, but | 5 | | less than
3 years old, 25%;
| 6 | | (3) in the case of a motor vehicle which is 3 or more, but | 7 | | less than
4 years old, 10%; and
| 8 | | (4) in the case of a motor vehicle which is 4 or more years | 9 | | old,
none.
| 10 | | (b) Notwithstanding the foregoing, such a dealer and a | 11 | | purchasing
consumer may negotiate a sale and purchase that is | 12 | | not subject to this
Section if there is stamped on any purchase | 13 | | order, contract, agreement,
or other instrument to be signed by | 14 | | the consumer as a part of that
transaction, in at least | 15 | | 10-point bold type immediately above the
signature line, the | 16 | | following:
| 17 | | "THIS VEHICLE IS SOLD AS IS WITH NO WARRANTY
| 18 | | AS TO MECHANICAL CONDITION"
| 19 | | (c) As used in this Section, "Power Train components" means | 20 | | the
engine block, head, all internal engine parts, oil pan and | 21 | | gaskets,
water pump, intake manifold, transmission, and all | 22 | | internal transmission
parts, torque converter, drive shaft, | 23 | | universal joints, rear axle and
all rear axle internal parts, | 24 | | and rear wheel bearings.
| 25 | | (d) The repair liability means that the dealer will make | 26 | | necessary
Power Train component repairs in his shop, or in the |
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| 1 | | shop of his service
affiliate, on the basis of his regular list | 2 | | price charge for parts and
labor, where the flat rate list | 3 | | price does not exceed 50% of the selling
price of the vehicle | 4 | | at the time repairs are requested.
| 5 | | (e) The age of the vehicle shall be measured according to | 6 | | the
manufacturer's model year designation as shown on the | 7 | | Certificate of
Title or Registration Certificate. Vehicles | 8 | | shall be designated as
current year models, one year old, 2 | 9 | | year old, and so forth according to
the time that has elapsed | 10 | | since January 1 of the appropriate model year
so designated.
| 11 | | (f) This Section does not preclude the issuance of a | 12 | | warranty or
guarantee by a motor vehicle dealer or motor car | 13 | | manufacturer that meets
or exceeds the basic provisions of | 14 | | paragraph (a).
| 15 | | (g) After the effective date of this amendatory Act of | 16 | | 1989,
executives' and officials' cars when so advertised shall | 17 | | have been used
exclusively by executives of the parent motor | 18 | | car manufacturer's personnel
or by an executive of an | 19 | | authorized dealer in the same make of car. These
cars, so | 20 | | advertised, shall not have been sold to a member of the public
| 21 | | prior to the appearance of the advertisement.
| 22 | | Any person who violates this Section commits an unlawful | 23 | | practice
within the meaning of this Act.
| 24 | | (Source: P.A. 86-351; 87-1140.)
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