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1 | | AN ACT concerning business.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 5. The Consumer Fraud and Deceptive Business |
5 | | Practices Act is amended by changing Section 2L as follows:
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6 | | (815 ILCS 505/2L) (from Ch. 121 1/2, par. 262L)
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7 | | Sec. 2L. Used motor vehicles; modification or disclaimer of |
8 | | implied warranty of merchantability limited. |
9 | | (a) Any retail sale of a used 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 licensed vehicle |
12 | | dealer new motor vehicle dealer or used motor vehicle
dealer |
13 | | within the meaning of Chapter 5 of the Illinois Vehicle Code or |
14 | | by an auction company at an auction that is open to the general |
15 | | public is
made subject to this Section.
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16 | | (b) This Section does not apply to vehicles with more than |
17 | | 150,000 miles at the time of sale. In addition, this Section |
18 | | does not apply to vehicles with titles that have been branded |
19 | | "rebuilt" or "flood". |
20 | | (c) Any sale of a used motor vehicle as described in |
21 | | subsection (a) may not exclude, modify, or disclaim the implied |
22 | | warranty of merchantability prescribed in Section 2-314 of the |
23 | | Uniform Commercial Code or limit the remedies for a breach of |
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1 | | the warranty before midnight of the 15th calendar day after |
2 | | delivery of a used motor vehicle or until a used motor vehicle |
3 | | is driven 500 miles after delivery, whichever is earlier. In |
4 | | calculating time under this Section, a day on which the |
5 | | warranty is breached and all subsequent days in which the used |
6 | | motor vehicle fails to conform with the implied warranty of |
7 | | merchantability are excluded. In calculating distance under |
8 | | this Section, the miles driven to obtain or in connection with |
9 | | the repair, servicing, or testing of a used motor vehicle that |
10 | | fails to conform with the implied warranty of merchantability |
11 | | are excluded. An attempt to exclude, modify, or disclaim the |
12 | | implied warranty of merchantability or to limit the remedies |
13 | | for a breach of the warranty in violation of this Section |
14 | | renders a purchase agreement voidable at the option of the |
15 | | purchaser. |
16 | | (d) An implied warranty of merchantability is met if a used |
17 | | motor vehicle functions free of a defect in a power train |
18 | | component. As used in this Section, "power train component" |
19 | | means the engine block, head, all internal engine parts, oil |
20 | | pan and gaskets, water pump, intake manifold, transmission, and |
21 | | all internal transmission parts, torque converter, drive |
22 | | shaft,
universal joints, rear axle and all rear axle internal |
23 | | parts, and rear wheel bearings. |
24 | | (e) The implied warranty of merchantability expires at |
25 | | midnight of the 15th calendar day after delivery of a used |
26 | | motor vehicle or when a used motor vehicle is driven 500 miles |
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1 | | after delivery, whichever is earlier. In calculating time, a |
2 | | day on which the implied warranty of merchantability is |
3 | | breached is excluded and all subsequent days in which the used |
4 | | motor vehicle fails to conform with the warranty are also |
5 | | excluded. In calculating distance, the miles driven to or by |
6 | | the seller to obtain or in connection with the repair, |
7 | | servicing, or testing of a used motor vehicle that fails to |
8 | | conform with the implied warranty of merchantability are |
9 | | excluded. An implied warranty of merchantability does not |
10 | | extend to damage that occurs after the sale of the used motor |
11 | | vehicle that results from: |
12 | | (1) off-road use; |
13 | | (2) racing; |
14 | | (3) towing; |
15 | | (4) abuse; |
16 | | (5) misuse; |
17 | | (6) neglect; |
18 | | (7) failure to perform regular maintenance; and |
19 | | (8) failure to maintain adequate oil, coolant, and |
20 | | other required fluids or lubricants. |
21 | | (f) If the implied warranty of merchantability described in |
22 | | this Section is breached, the consumer shall give reasonable |
23 | | notice to the seller no later than 2 business days after the |
24 | | end of the statutory warranty period. Before the consumer |
25 | | exercises another remedy pursuant to Article 2 of the Uniform |
26 | | Commercial Code, the seller shall have a reasonable opportunity |
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1 | | to repair the used motor vehicle. The consumer shall pay |
2 | | one-half of the cost of the first 2 repairs necessary to bring |
3 | | the used motor vehicle into compliance with the warranty. The |
4 | | payments by the consumer are limited to a maximum payment of |
5 | | $100 for each repair; however, the consumer shall only be |
6 | | responsible for a maximum payment of $100 if the consumer |
7 | | brings in the vehicle for a second repair for the same defect. |
8 | | Reasonable notice as defined in this Section shall include, but |
9 | | not be limited to: |
10 | | (1) text, provided the seller has provided the consumer |
11 | | with a cell phone number; |
12 | | (2) phone call or message to the seller's business |
13 | | phone number provided on the seller's bill of sale for the |
14 | | purchase of the motor vehicle; |
15 | | (3) in writing to the seller's address provided on the |
16 | | seller's bill of sale for the purchase of the motor |
17 | | vehicle; |
18 | | (4) in person at the seller's address provided on the |
19 | | seller's bill of sale for the purchase of the motor |
20 | | vehicle. |
21 | | (g) The maximum liability of a seller for repairs pursuant |
22 | | to this Section is limited to the purchase price paid for the |
23 | | used motor vehicle, to be refunded to the consumer or lender, |
24 | | as applicable, in exchange for return of the vehicle. |
25 | | (h) An agreement for the sale of a used motor vehicle |
26 | | subject to this Section is voidable at the option of the |
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1 | | consumer, unless it contains on its face the following |
2 | | conspicuous statement printed in boldface 10-point or larger |
3 | | type set off from the body of the agreement: |
4 | | "Illinois law requires that this vehicle will be free of a |
5 | | defect in a power train component for 15 days or 500 miles |
6 | | after delivery, whichever is earlier, except with regard to |
7 | | particular defects disclosed on the first page of this |
8 | | agreement. "Power train component" means the engine block, |
9 | | head, all internal engine parts, oil pan and gaskets, water |
10 | | pump, intake manifold, transmission, and all internal |
11 | | transmission parts, torque converter, drive shaft, universal |
12 | | joints, rear axle and all rear axle internal parts, and rear |
13 | | wheel bearings. You (the consumer) will have to pay up to $100 |
14 | | for each of the first 2 repairs if the warranty is violated.". |
15 | | (i) The inclusion in the agreement of the statement |
16 | | prescribed in subsection (h) of this Section does not create an |
17 | | express warranty. |
18 | | (j) A consumer of a used motor vehicle may waive the |
19 | | implied warranty of merchantability only for a particular |
20 | | defect in the vehicle including, but not limited to, a rebuilt |
21 | | or flood-branded title and only if all of the following |
22 | | conditions are satisfied: |
23 | | (1) the seller subject to this Section fully and |
24 | | accurately discloses to the consumer that because of |
25 | | circumstances unusual to the business, the used motor |
26 | | vehicle has a particular defect; |
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1 | | (2) the consumer agrees to buy the used motor vehicle |
2 | | after disclosure of the defect; and |
3 | | (3) before the sale, the consumer indicates agreement |
4 | | to the waiver by signing and dating the following |
5 | | conspicuous statement that is printed on the first page of |
6 | | the sales agreement or on a separate document in boldface |
7 | | 10-point or larger type and that is written in the language |
8 | | in which the presentation was made: |
9 | | "Attention consumer: sign here only if the seller has |
10 | | told you that this vehicle has the following problem or |
11 | | problems and you agree to buy the vehicle on those terms: |
12 | | 1. ....................................................... |
13 | | 2. ....................................................... |
14 | | 3. .....................................................". |
15 | | (k) It shall be an affirmative defense to any claim under |
16 | | this Section that: |
17 | | (1) an alleged nonconformity does not substantially |
18 | | impair the use and market value of the motor vehicle; |
19 | | (2) a nonconformity is the result of abuse, neglect, or |
20 | | unauthorized modifications or alterations of the motor |
21 | | vehicle; |
22 | | (3) a claim by a consumer was not filed in good faith; |
23 | | or |
24 | | (4) any other affirmative defense allowed by law. |
25 | | (l) Other than the 15-day, 500-mile implied warranty of |
26 | | merchantability identified herein, a seller subject to this |
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1 | | Section is not required to provide any further express or |
2 | | implied warranties to a purchasing consumer unless: |
3 | | (1) the seller is required by federal or State law to |
4 | | provide a further express or implied warranty; or |
5 | | (2) the seller fails to fully inform and disclose to |
6 | | the consumer that the vehicle is being sold without any |
7 | | further express or implied warranties, other than the 15 |
8 | | day, 500 mile implied warranty of merchantability |
9 | | identified in this Section. |
10 | | (m) This Section does not apply to the sale of antique |
11 | | vehicles, as defined in the Illinois Vehicle Code, or to |
12 | | collector motor vehicles. |
13 | | (a) The dealer is liable to the purchasing consumer for the
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14 | | following share of the cost of the repair of Power Train |
15 | | components for
a period of 30 days from date of delivery, |
16 | | unless the repairs have
become necessary by abuse, negligence, |
17 | | or collision. The burden of
establishing that a claim for |
18 | | repairs is not within this Section shall
be on the selling |
19 | | dealer. The dealer's share of such repair costs is:
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20 | | (1) in the case of a motor vehicle which is not more than 2 |
21 | | years
old, 50%;
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22 | | (2) in the case of a motor vehicle which is 2 or more, but |
23 | | less than
3 years old, 25%;
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24 | | (3) in the case of a motor vehicle which is 3 or more, but |
25 | | less than
4 years old, 10%; and
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26 | | (4) in the case of a motor vehicle which is 4 or more years |
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1 | | old,
none.
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2 | | (b) Notwithstanding the foregoing, such a dealer and a |
3 | | purchasing
consumer may negotiate a sale and purchase that is |
4 | | not subject to this
Section if there is stamped on any purchase |
5 | | order, contract, agreement,
or other instrument to be signed by |
6 | | the consumer as a part of that
transaction, in at least |
7 | | 10-point bold type immediately above the
signature line, the |
8 | | following:
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9 | | "THIS VEHICLE IS SOLD AS IS WITH NO WARRANTY
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10 | | AS TO MECHANICAL CONDITION"
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11 | | (c) As used in this Section, "Power Train components" means |
12 | | the
engine block, head, all internal engine parts, oil pan and |
13 | | gaskets,
water pump, intake manifold, transmission, and all |
14 | | internal transmission
parts, torque converter, drive shaft, |
15 | | universal joints, rear axle and
all rear axle internal parts, |
16 | | and rear wheel bearings.
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17 | | (d) The repair liability means that the dealer will make |
18 | | necessary
Power Train component repairs in his shop, or in the |
19 | | shop of his service
affiliate, on the basis of his regular list |
20 | | price charge for parts and
labor, where the flat rate list |
21 | | price does not exceed 50% of the selling
price of the vehicle |
22 | | at the time repairs are requested.
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23 | | (e) The age of the vehicle shall be measured according to |
24 | | the
manufacturer's model year designation as shown on the |
25 | | Certificate of
Title or Registration Certificate. Vehicles |
26 | | shall be designated as
current year models, one year old, 2 |
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1 | | year old, and so forth according to
the time that has elapsed |
2 | | since January 1 of the appropriate model year
so designated.
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3 | | (f) This Section does not preclude the issuance of a |
4 | | warranty or
guarantee by a motor vehicle dealer or motor car |
5 | | manufacturer that meets
or exceeds the basic provisions of |
6 | | paragraph (a).
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7 | | (g) After the effective date of this amendatory Act of |
8 | | 1989,
executives' and officials' cars when so advertised shall |
9 | | have been used
exclusively by executives of the parent motor |
10 | | car manufacturer's personnel
or by an executive of an |
11 | | authorized dealer in the same make of car. These
cars, so |
12 | | advertised, shall not have been sold to a member of the public
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13 | | prior to the appearance of the advertisement.
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14 | | Any person who violates this Section commits an unlawful |
15 | | practice
within the meaning of this Act.
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16 | | (Source: P.A. 86-351; 87-1140.)
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17 | | Section 99. Effective date. This Act takes effect July 1, |
18 | | 2017. |