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90_SB1039enr
New Act
Creates the Automotive Repair Act. Requires that
automotive repair facilities disclose certain information
concerning estimates for repair work, warranties, and other
matters. Provides procedures for consumer authorization of
repairs. Makes violation of the Act an unlawful practice
under the Consumer Fraud and Deceptive Business Practices
Act.
LRB9002918DJpkA
SB1039 Enrolled LRB9002918DJpkA
1 AN ACT concerning the automotive repair industry.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5 Automotive Repair Act.
6 Section 5. Legislative finding. The automotive repair
7 industry supports good communication between motor vehicle
8 repair facilities and their customers. The General Assembly
9 recognizes that improved communications and accurate
10 representations between automotive repair facilities and
11 their customers will increase consumer confidence, reduce the
12 likelihood of disputes arising, and promote fair and
13 nondeceptive practices, thereby enhancing the safety and
14 reliability of motor vehicles serviced by motor vehicle
15 repair facilities in the State of Illinois.
16 Section 10. Definitions. In this Act:
17 "Automotive repair" includes, but is not limited to:
18 (1) All repairs to motor vehicles that are commonly
19 performed in a motor vehicle repair facility by a motor
20 vehicle technician, including the diagnosis,
21 installation, exchange, or repair of mechanical or
22 electrical parts or units for any vehicle, the
23 performance of any electrical or mechanical adjustment to
24 any vehicle, or the performance of any service work
25 required for routine maintenance or repair of any
26 vehicle. The term does not include commercial fleet
27 repair or maintenance transactions involving 2 or more
28 vehicles or ongoing service or maintenance contracts
29 involving vehicles used primarily for business purposes.
30 (2) All repair work in motor vehicle repair
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1 facilities that perform one or more specialties within
2 the automotive repair service industry, including, but
3 not limited to, refinishing, brake, electrical, exhaust
4 repair or installation, front-end, radiators, tires,
5 transmission, tune-up, and windshield. However,
6 transactions involving the retail purchase of merchandise
7 when a facility installs the merchandise as part of the
8 transaction at the discretion of the customer for a firm
9 price are not included. These transactions shall include
10 but not be limited to tires, batteries, oil, and lube
11 jobs.
12 "Automotive repair facility" or "motor vehicle repair
13 facility" means any person, firm, association, or corporation
14 that for compensation engages in the business of automotive
15 repair or diagnosis, or both, of malfunctions of motor
16 vehicles.
17 A "used" part consists of a used assembly removed from a
18 vehicle and installed on a vehicle undergoing repair without
19 the benefit of being rebuilt or remanufactured.
20 Section 15. Disclosures to consumers; estimates.
21 (a) Disclosures required. No work for compensation that
22 exceeds $100 shall be commenced without specific
23 authorization from the consumer after the disclosures set
24 forth in this Section.
25 (b) Estimated costs. Every motor vehicle repair
26 facility shall either (i) give to each consumer a written
27 estimated price for labor and parts for a specific repair and
28 shall not charge for work done or parts supplied in an amount
29 that exceeds the estimate by more than 10% without oral or
30 written consent of the consumer or (ii) give to each consumer
31 a written price limit for each specific repair and shall not
32 exceed that limit without oral or written consent of the
33 consumer. Either option shall include an estimate of the
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1 time necessary to complete the repair, if in excess of one
2 working day. The estimate shall include the total costs to
3 repair the vehicle.
4 Estimates shall include all charges to be paid by the
5 consumer to complete the repair, including any charges for
6 estimates and diagnostics. However, transactions involving
7 the retail purchase of merchandise when a facility installs
8 the merchandise as part of the transaction at the discretion
9 of the customer for a firm price are not included. These
10 transactions shall include but not be limited to tires,
11 batteries, oil, and lube jobs.
12 (1) Description of parts. Motor vehicle repair
13 facilities shall describe in the estimate the major parts
14 needed to effectuate the repair and whether parts are new
15 or used.
16 (2) Calculation of labor costs. Estimates shall
17 indicate that the motor vehicle repair facility may use a
18 combination of industry standard flat rate (time)
19 manuals, actual time, or condition of the vehicle to
20 determine labor costs. This disclosure mandate may also
21 be fulfilled by means of a sign that provides the same
22 information to the consumer. Such a sign shall be posted
23 at a location that can be easily viewed by the consumer.
24 (3) Required or suggested repairs. Estimates shall
25 indicate whether the estimated repairs are required or
26 suggested.
27 (4) Disassembly and reassembly charges. If it is
28 necessary to disassemble, or partially disassemble, a
29 vehicle or vehicle component in order to provide the
30 consumer with a written estimate for required repair or
31 maintenance, the estimate shall show the cost of any
32 disassembly or reassembly, or both, if the consumer
33 elects not to proceed with the repair or maintenance of
34 the vehicle.
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1 (5) Date. The estimate shall include the date the
2 estimate was prepared or the date the vehicle was
3 presented to the motor vehicle repair facility for repair
4 or servicing, or both, the odometer reading on the
5 vehicle at the time it was left with the motor vehicle
6 repair facility, and a promised date of delivery.
7 Section 20. Notice of consumer's rights; estimate. When
8 an estimate is required to be presented to a consumer, a
9 motor vehicle repair facility shall disclose to the
10 prospective consumer an estimated price quotation or the
11 option to waive the price quotation by completing the
12 following statement with the consumer's signature:
13 "You are entitled to a price estimate for the repairs you
14 have authorized. The repair price may be less than the
15 estimate but shall not exceed (1) any price limited estimate
16 or (2) any parts and labor estimate by more than 10%.
17 Additional repairs may not be performed without your consent.
18 You may waive your right to a written estimate and require
19 that you be notified if the price exceeds an amount you have
20 specified.
21 You may waive your right to an estimate, which gives the
22 motor vehicle repair facility the right to set the price
23 without your permission. Your signature will indicate your
24 selection.
25 (a) I request an estimate in writing before you begin
26 repairs.
27 Signature .................................
28 (b) Please proceed with repairs but call me for approval
29 before continuing if the price exceeds $ .............
30 Signature ..........................................
31 (c) I do not want an estimate and you may set the price
32 of repairs.
33 Signature ...................................
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1 Date .......... Time..........
2 This estimated price for authorized repairs will be
3 honored if the motor vehicle is delivered to the facility
4 within the time period agreed to by the consumer and the
5 motor vehicle repair facility."
6 However, transactions involving the retail purchase of
7 merchandise when a facility installs the merchandise as part
8 of the transaction at the discretion of the customer for a
9 firm price are not included. These transactions shall
10 include but not be limited to tires, batteries, oil, and lube
11 jobs.
12 Section 25. Estimated price insufficient. If it is
13 determined that the estimated price is insufficient because
14 of unforeseen circumstances, the consumer's consent must be
15 obtained before the work estimated is done or parts estimated
16 are supplied. If the consumer's consent is oral, the motor
17 vehicle repair facility shall make a notation on the work
18 order or estimate and on the invoice of the date, time, name
19 of person authorizing the additional repairs, and telephone
20 number called, if any, together with a specification of the
21 additional parts and labor and the total additional cost.
22 Section 30. Consumer's authorization of repairs or other
23 action. After receiving the estimate, the owner or the
24 owner's agent may (i) authorize the repairs at the estimate
25 of cost and time in writing, (ii) request the return of the
26 motor vehicle in a disassembled state, or (iii) request that
27 the vehicle be assembled in reasonably the same condition as
28 when released to the motor vehicle repair facility, in which
29 case the motor vehicle repair facility shall make the motor
30 vehicle available for possession within 3 working days after
31 the time of request, unless parts are not available, making
32 additional time necessary. The motor vehicle repair facility
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1 may receive payment for only those items on the schedule of
2 charges to which the facility is entitled.
3 Section 35. Inability to deliver motor vehicle to
4 facility during business hours. When the consumer is unable
5 to deliver the motor vehicle to the motor vehicle repair
6 facility during business hours and the consumer has requested
7 the motor vehicle repair facility to take possession of the
8 motor vehicle for the purpose of repairing or estimating the
9 cost of repairing the motor vehicle, the motor vehicle repair
10 facility may not undertake the diagnosing or repairing of any
11 malfunction of the motor vehicle for compensation unless the
12 motor vehicle repair facility has complied with all of the
13 following conditions:
14 (1) The motor vehicle repair facility has prepared
15 a written estimate or a firm price quotation of the price
16 for labor and parts necessary to repair the motor
17 vehicle.
18 (2) By telephone or otherwise, the consumer has
19 been given all of the material information on the written
20 estimate or firm price quotation, and the consumer has
21 approved the written estimate or firm price quotation.
22 (3) The consumer has given his or her oral or
23 written authorization to the motor vehicle repair
24 facility to make the repairs pursuant to the written
25 estimate or firm price quotation.
26 If the consumer's authorization is oral, the motor
27 vehicle repair facility shall make, on both the written
28 estimate or firm price quotation and the invoice, a notation
29 of the name of the person authorizing the repairs, the date,
30 the time, and the telephone number called, if any. Any
31 charge for parts or labor in excess of the original estimate
32 must be separately authorized by the consumer as provided in
33 subsection (b) of Section 15 and in Section 25.
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1 Section 40. Motor vehicle repair facility unable to
2 complete repair in time. If the motor vehicle repair facility
3 is unable to complete the repairs in the time promised, the
4 facility shall notify the owner or the owner's agent of this
5 fact. After receiving that notification the owner or the
6 owner's agent may request return of the motor vehicle in
7 either an assembled or disassembled state, in which case the
8 motor vehicle repair facility shall make the motor vehicle
9 available for possession within 3 working days from the date
10 of the request. The motor vehicle repair facility may receive
11 payment for the work actually done and for those items on the
12 schedule of charges to which the facility is entitled.
13 Section 45. Consumer's waiver of estimate. A consumer
14 may waive the right to receive a written estimate if the
15 waiver is voluntary and made without coercion by the motor
16 vehicle repair facility. A motor vehicle repair facility or
17 anyone in its employ shall not make use of the waiver in an
18 attempt to evade this Act. Nothing in this Section shall be
19 construed as requiring a motor vehicle repair facility to
20 give a written estimated price if the motor vehicle repair
21 facility does not agree to perform the requested repair.
22 Section 50. Disclosures to consumers; invoices.
23 (a) Disclosures required. Whether or not a written
24 estimate is required, parts and labor provided by a motor
25 vehicle repair facility shall be clearly and accurately
26 recorded in writing on an invoice and shall include all of
27 the items set forth in this Section.
28 (b) Itemization of cost of repair performed. The
29 invoice shall show the motor vehicle repair facility's
30 business name and address, the date of the invoice, the
31 odometer reading at the time the invoice was prepared, the
32 name of the consumer, the description of the vehicle, and the
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1 terms and time limit of any guarantee for the repair work
2 performed. In addition, the invoice shall describe all
3 repair work done by a motor vehicle repair facility,
4 including all warranty work, and shall separately identify
5 (i) each major part supplied in a manner so that the consumer
6 can understand what was purchased and (ii) the total price
7 charged for all parts and labor.
8 Service work and parts shall be listed separately on the
9 invoice, which shall also state separately the subtotal
10 prices for service work and for parts, not including sales
11 tax, and shall state separately the sales tax, if any,
12 applicable to each.
13 The invoice shall itemize any additional charges and
14 include those charges in the total presented to the consumer.
15 (c) Description of parts installed. The invoice shall
16 include a description of the major parts installed.
17 (d) Copies of invoices. A legible copy of the invoice
18 shall be given to the consumer and a legible copy shall be
19 retained by the motor vehicle repair facility for a period of
20 2 years from the date of repair as a part of the motor
21 vehicle repair facility's records, which may be maintained
22 in an electronic format. Records may be stored at a separate
23 location.
24 Section 55. Consumer disclosures; guarantees;
25 warranties.
26 (a) If a motor vehicle repair facility provides a
27 warranty on repair parts and labor, the facility shall put
28 the warranty in writing and give a legible copy to the
29 consumer. The consumer's copy of the warranty must contain
30 the following:
31 (1) The nature and extent of the warranty,
32 including a description of parts or service included in
33 or excluded from the warranty.
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1 (2) The duration of the warranty and the
2 requirements to be performed by the warrantee before the
3 warrantor will fulfill the warranty.
4 (3) All conditions and limitations of the warranty
5 and the manner in which the warrantor will fulfill the
6 warranty, such as by repair, replacement, or refund.
7 (4) Any options of the warrantor or warrantee.
8 (5) The warrantor's identity and address.
9 (b) When repair or diagnostic work is performed pursuant
10 to a warranty, a motor vehicle repair facility shall give an
11 estimate of the time to complete the repairs.
12 Section 60. Consumer disclosures; required signs. Every
13 motor vehicle repair facility shall post in a prominent place
14 on the business premises one or more signs, readily visible
15 to customers, in the following form:
16 YOUR CUSTOMER RIGHTS. UNLESS THE FACILITY PROVIDES A FIRM
17 PRICE QUOTATION, YOU ARE ENTITLED BY LAW TO:
18 1. A WRITTEN ESTIMATE FOR REPAIRS THAT WILL COST MORE
19 THAN $100 UNLESS WAIVED OR ABSENT FACE-TO-FACE CONTACT (SEE
20 ITEM 3 BELOW).
21 2. AUTHORIZE ORALLY OR IN WRITING ANY REPAIRS THAT
22 EXCEED THE ESTIMATED TOTAL PRE-SALES-TAX COST BY MORE THAN
23 10% OR THAT EXCEED THE LIMITED PRICE ESTIMATE.
24 3. AUTHORIZE ANY REPAIRS ORALLY OR IN WRITING IF YOUR
25 VEHICLE IS LEFT WITH THE MOTOR VEHICLE REPAIR FACILITY
26 WITHOUT FACE-TO-FACE CONTACT BETWEEN YOU AND THE MOTOR
27 VEHICLE REPAIR FACILITY PERSONNEL.
28 IF YOU HAVE AUTHORIZED A REPAIR IN ACCORDANCE WITH THE
29 ABOVE INFORMATION, YOU ARE REQUIRED TO PAY FOR THE COSTS OF
30 THE REPAIR PRIOR TO TAKING THE VEHICLE FROM THE PREMISES.
31 The first line of each sign shall be in letters not less
32 than 1.5 inches in height, and the remaining lines shall be
33 in letters not less than 0.5 inch in height.
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1 Section 65. Recordkeeping. Every motor vehicle repair
2 facility shall maintain copies of estimates for contracted
3 work and all invoices. The copies, which may be maintained
4 in an electronic format, shall be kept for 2 years and shall
5 be available for inspection by the Attorney General.
6 Section 70. Removal of vehicle from facility. Upon
7 reasonable notice and during the motor vehicle repair
8 facility's business hours, a consumer may remove a vehicle
9 from a motor vehicle repair facility upon paying for the
10 following:
11 (1) Labor actually performed.
12 (2) Parts actually installed.
13 (3) Parts ordered specifically for the consumer's
14 car if the order is not cancelable or the parts are not
15 returnable for cash or credit.
16 (4) Storage charges imposed in accordance with the
17 schedule of charges if disclosed to consumers prior to
18 repairs.
19 Section 75. Lien barred. A motor vehicle repair
20 facility that fails to comply with Section 15, 20, 25, 30,
21 35, 40, 45, 50, 55, or 60 is barred from asserting a
22 possessory or chattel lien for the amount of the unauthorized
23 parts or labor upon the motor vehicle or component.
24 Section 80. Unlawful acts or practices. Each of the
25 following acts or practices is unlawful when committed by a
26 motor vehicle repair facility:
27 (1) Advertising in a false, deceptive, or
28 misleading manner.
29 (2) Charging a consumer for parts not delivered or
30 installed or a labor operation or repair procedure that
31 has not actually been performed.
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1 (3) Unauthorized operation of a consumer's vehicle
2 for purposes not related to repair or diagnosis.
3 (4) Failing or refusing at the time of sale to
4 provide a consumer, upon request, a copy, at no charge,
5 of any document signed by the consumer.
6 (5) Retaining duplicative payment from both the
7 consumer and the warranty or extended service contract
8 provider for the same covered component, part, or labor.
9 (6) Charging a consumer for unnecessary repairs.
10 For purposes of this paragraph, "unnecessary repairs"
11 means those repairs for which there is no reasonable
12 basis for performing the service. A reasonable basis
13 includes: (i) that the repair service is consistent with
14 specifications established by law or the manufacturer of
15 the motor vehicle, component, or part; (ii) that the
16 repair is in accordance with usual and customary
17 practices; (iii) that the repair was performed at the
18 specific request of the consumer after the technician
19 disclosed to the consumer the basis for recommending the
20 repair when the recommendation is not in accordance with
21 manufacturer specifications or accepted trade practices;
22 or (iv) that the repair is at the consumer's request.
23 (7) Misrepresenting the terms of a warranty,
24 guarantee, or service agreement.
25 (8) Altering a motor vehicle to create a condition
26 requiring repair.
27 (9) Failing to honor a warranty, guarantee, or
28 service agreement to which the motor vehicle repair
29 facility is a party.
30 (10) Charging or receiving payment for repairs not
31 authorized by the consumer under Section 15, 20, 25, 30,
32 35, 40, 45, 50, 55, or 60.
33 Section 85. Violations. Whenever an automotive repair
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1 facility is knowingly engaged in or has knowingly engaged in
2 a persistent practice or pattern of conduct at a single
3 location that violates this Act, that knowing, persistent
4 practice or pattern of conduct shall be deemed an unlawful
5 act or practice under the Consumer Fraud and Deceptive
6 Business Practices Act. In the case of such a knowing,
7 persistent practice or pattern of conduct, all remedies,
8 penalties, and authority available to the Attorney General
9 and the several State's Attorneys under the Consumer Fraud
10 and Deceptive Business Practices Act for the enforcement of
11 that Act shall be available for the enforcement of this Act.
12 Section 190. The Consumer Fraud and Deceptive Business
13 Practices Act is amended by changing Section 2Z as follows:
14 (815 ILCS 505/2Z) (from Ch. 121 1/2, par. 262Z)
15 Sec. 2Z. Violations of other Acts. Any person who
16 knowingly violates the Automotive Repair Act, the Dance
17 Studio Act, the Physical Fitness Services Act, the Hearing
18 Instrument Consumer Protection Act, the Illinois Union Label
19 Act, the Job Referral and Job Listing Services Consumer
20 Protection Act, the Travel Promotion Consumer Protection Act,
21 the Credit Services Organizations Act, the Automatic
22 Telephone Dialers Act, the Pay-Per-Call Services Consumer
23 Protection Act, the Telephone Solicitations Act, the Illinois
24 Funeral or Burial Funds Act, the Cemetery Care Act, or the
25 Pre-Need Cemetery Sales Act commits an unlawful practice
26 within the meaning of this Act.
27 (Source: P.A. 88-288; 89-72, eff. 12-31-95; 89-615, eff.
28 8-9-96.)