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| [ Introduced ] | [ Enrolled ] | [ House Amendment 001 ] |
| [ Senate Amendment 001 ] |
90_SB1039eng
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 Engrossed 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.
7 (c) Description of parts. Motor vehicle repair
8 facilities shall describe in the estimate the major parts
9 needed to effectuate the repair and whether parts are new or
10 used.
11 (d) Calculation of labor costs. Estimates shall
12 indicate that the motor vehicle repair facility may use a
13 combination of industry standard flat rate (time) manuals,
14 actual time, or condition of the vehicle to determine labor
15 costs. This disclosure mandate may also be fulfilled by
16 means of a sign that provides the same information to the
17 consumer. Such a sign shall be posted at a location that can
18 be easily viewed by the consumer.
19 (e) Required or suggested repairs. Estimates shall
20 indicate whether the estimated repairs are required or
21 suggested and the reason or reasons for the requirement or
22 suggestion.
23 (f) Disassembly and reassembly charges. If it is
24 necessary to disassemble, or partially disassemble, a vehicle
25 or vehicle component in order to provide the consumer with a
26 written estimate for required repair or maintenance, the
27 estimate shall show the cost of any disassembly or
28 reassembly, or both, if the consumer elects not to proceed
29 with the repair or maintenance of the vehicle.
30 (g) Date. The estimate shall include the date the
31 estimate was prepared or the date the vehicle was presented
32 to the motor vehicle repair facility for repair or servicing,
33 or both, the odometer reading on the vehicle at the time it
34 was left with the motor vehicle repair facility, and a
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1 promised date of delivery.
2 Section 20. Notice of consumer's rights; estimate.
3 Every motor vehicle repair facility shall disclose to every
4 prospective consumer an estimated price quotation or the
5 option to waive the price quotation by completing the
6 following statement with the consumer's signature:
7 "You are entitled to a price estimate for the repairs you
8 have authorized. The repair price may be less than the
9 estimate but shall not exceed (1) any price limited estimate
10 or (2) any parts and labor estimate by more than 10%.
11 Additional repairs may not be performed without your consent.
12 You may waive your right to a written estimate and require
13 that you be notified if the price exceeds an amount you have
14 specified.
15 You may waive your right to an estimate, which gives the
16 motor vehicle repair facility the right to set the price
17 without your permission. Your signature will indicate your
18 selection.
19 (a) I request an estimate in writing before you begin
20 repairs.
21 Signature .................................
22 (b) Please proceed with repairs but call me for approval
23 before continuing if the price exceeds $ .............
24 Signature ..........................................
25 (c) I do not want an estimate and you may set the price
26 of repairs.
27 Signature ...................................
28 Date .......... Time..........
29 This estimated price for authorized repairs will be
30 honored if the motor vehicle is delivered to the facility
31 within the time period agreed to by the consumer and the
32 motor vehicle repair facility."
33 However, transactions involving the retail purchase of
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1 merchandise when a facility installs the merchandise as part
2 of the transaction at the discretion of the customer for a
3 firm price are not included. These transactions shall
4 include but not be limited to tires, batteries, oil, and lube
5 jobs.
6 Section 25. Estimated price insufficient. If it is
7 determined that the estimated price is insufficient because
8 of unforeseen circumstances, the consumer's consent must be
9 obtained before the work estimated is done or parts estimated
10 are supplied. If the consumer's consent is oral, the motor
11 vehicle repair facility shall make a notation on the work
12 order or estimate and on the invoice of the date, time, name
13 of person authorizing the additional repairs, and telephone
14 number called, if any, together with a specification of the
15 additional parts and labor and the total additional cost.
16 Section 30. Consumer's authorization of repairs or other
17 action. After receiving the estimate, the owner or the
18 owner's agent may (i) authorize the repairs at the estimate
19 of cost and time in writing, (ii) request the return of the
20 motor vehicle in a disassembled state, or (iii) request that
21 the vehicle be assembled in reasonably the same condition as
22 when released to the motor vehicle repair facility, in which
23 case the motor vehicle repair facility shall make the motor
24 vehicle available for possession within 3 working days after
25 the time of request, unless parts are not available, making
26 additional time necessary. The motor vehicle repair facility
27 may receive payment for only those items on the schedule of
28 charges to which the facility is entitled.
29 Section 35. Inability to deliver motor vehicle to
30 facility during business hours. When the consumer is unable
31 to deliver the motor vehicle to the motor vehicle repair
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1 facility during business hours and the consumer has requested
2 the motor vehicle repair facility to take possession of the
3 motor vehicle for the purpose of repairing or estimating the
4 cost of repairing the motor vehicle, the motor vehicle repair
5 facility may not undertake the diagnosing or repairing of any
6 malfunction of the motor vehicle for compensation unless the
7 motor vehicle repair facility has complied with all of the
8 following conditions:
9 (1) The motor vehicle repair facility has prepared
10 a written estimate of the price for labor and parts
11 necessary to repair the motor vehicle.
12 (2) By telephone or otherwise, the consumer has
13 been given all of the material information on the written
14 estimate, and the consumer has approved the written
15 estimate.
16 (3) The consumer has given his or her oral or
17 written authorization to the motor vehicle repair
18 facility to make the repairs pursuant to the written
19 estimate.
20 If the consumer's authorization is oral, the motor
21 vehicle repair facility shall make, on both the written
22 estimate and the invoice, a notation of the name of the
23 person authorizing the repairs, the date, the time, and the
24 telephone number called, if any. Any charge for parts or
25 labor in excess of the original estimate must be separately
26 authorized by the consumer as provided in subsection (b) of
27 Section 15 and in Section 25.
28 Section 40. Motor vehicle repair facility unable to
29 complete repair in time. If the motor vehicle repair facility
30 is unable to complete the repairs in the time estimated, the
31 facility shall notify the owner or the owner's agent of this
32 fact. After receiving that notification the owner or the
33 owner's agent may request return of the motor vehicle in
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1 either an assembled or disassembled state, in which case the
2 motor vehicle repair facility shall make the motor vehicle
3 available for possession within 3 working days from the date
4 of the request. The motor vehicle repair facility may receive
5 payment for the work actually done and for those items on the
6 schedule of charges to which the facility is entitled.
7 Section 45. Consumer's waiver of estimate. A consumer
8 may waive the right to receive a written estimate if the
9 waiver is voluntary and made without coercion by the motor
10 vehicle repair facility. A motor vehicle repair facility or
11 anyone in its employ shall not make use of the waiver in an
12 attempt to evade this Act. Nothing in this Section shall be
13 construed as requiring a motor vehicle repair facility to
14 give a written estimated price if the motor vehicle repair
15 facility does not agree to perform the requested repair.
16 Section 50. Disclosures to consumers; invoices.
17 (a) Disclosures required. Whether or not a written
18 estimate is required, parts and labor provided by a motor
19 vehicle repair facility shall be clearly and accurately
20 recorded in writing on an invoice and shall include all of
21 the items set forth in this Section.
22 (b) Itemization of cost of repair performed. The
23 invoice shall show the motor vehicle repair facility's
24 business name and address, the date of the invoice, the
25 odometer reading at the time the invoice was prepared, the
26 name of the consumer, the description of the vehicle, and the
27 terms and time limit of any guarantee for the repair work
28 performed. In addition, the invoice shall describe all
29 repair work done by a motor vehicle repair facility,
30 including all warranty work, and shall separately identify
31 (i) each major part supplied in a manner so that the consumer
32 can understand what was purchased and (ii) the total price
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1 charged for all parts and labor.
2 Service work and parts shall be listed separately on the
3 invoice, which shall also state separately the subtotal
4 prices for service work and for parts, not including sales
5 tax, and shall state separately the sales tax, if any,
6 applicable to each.
7 The invoice shall itemize any additional charges and
8 include those charges in the total presented to the consumer.
9 (c) Description of parts installed. The invoice shall
10 include a description of the major parts installed.
11 (d) Copies of invoices. A legible copy of the invoice
12 shall be given to the consumer and a legible copy shall be
13 retained by the motor vehicle repair facility for a period of
14 2 years from the date of repair as a part of the motor
15 vehicle repair facility's records. Records may be stored at
16 a separate location.
17 Section 55. Consumer disclosures; guarantees;
18 warranties.
19 (a) If a motor vehicle repair facility provides a
20 warranty on repair parts and labor, the facility shall put
21 the warranty in writing and give a legible copy to the
22 consumer. The consumer's copy of the warranty must contain
23 the following:
24 (1) The nature and extent of the warranty,
25 including a description of parts or service included in
26 or excluded from the warranty.
27 (2) The duration of the warranty and the
28 requirements to be performed by the warrantee before the
29 warrantor will fulfill the warranty.
30 (3) All conditions and limitations of the warranty
31 and the manner in which the warrantor will fulfill the
32 warranty, such as by repair, replacement, or refund.
33 (4) Any options of the warrantor or warrantee.
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1 (5) The warrantor's identity and address.
2 (b) When repair or diagnostic work is performed pursuant
3 to a warranty, a motor vehicle repair facility shall give an
4 estimate of the time to complete the repairs.
5 Section 60. Consumer disclosures; required signs. Every
6 motor vehicle repair facility shall post in a prominent place
7 on the business premises one or more signs, readily visible
8 to customers, in the following form:
9 YOUR CUSTOMER RIGHTS. YOU ARE ENTITLED BY LAW TO:
10 1. A WRITTEN ESTIMATE FOR REPAIRS THAT WILL COST MORE
11 THAN $100 UNLESS WAIVED OR ABSENT FACE-TO-FACE CONTACT (SEE
12 ITEM 3 BELOW).
13 2. AUTHORIZE ORALLY OR IN WRITING ANY REPAIRS THAT
14 EXCEED THE ESTIMATED TOTAL PRE-SALES-TAX COST BY MORE THAN
15 10% OR THAT EXCEED THE LIMITED PRICE ESTIMATE.
16 3. AUTHORIZE ANY REPAIRS ORALLY OR IN WRITING IF YOUR
17 VEHICLE IS LEFT WITH THE MOTOR VEHICLE REPAIR FACILITY
18 WITHOUT FACE-TO-FACE CONTACT BETWEEN YOU AND THE MOTOR
19 VEHICLE REPAIR FACILITY PERSONNEL.
20 IF YOU HAVE AUTHORIZED A REPAIR IN ACCORDANCE WITH THE
21 ABOVE INFORMATION, YOU ARE REQUIRED TO PAY FOR THE COSTS OF
22 THE REPAIR PRIOR TO TAKING THE VEHICLE FROM THE PREMISES.
23 The first line of each sign shall be in letters not less
24 than 1.5 inches in height, and the remaining lines shall be
25 in letters not less than 0.5 inch in height. However,
26 transactions involving the retail purchase of merchandise
27 when a facility installs the merchandise as part of the
28 transaction at the discretion of the customer for a firm
29 price are not included. These transactions shall include but
30 not be limited to tires, batteries, oil, and lube jobs.
31 Section 65. Recordkeeping. Every motor vehicle repair
32 facility shall maintain copies of signed estimates and all
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1 work orders, invoices, parts purchase orders, appraisals, and
2 schedules of charges prepared by that repair facility. The
3 copies shall be kept for 2 years and shall be available for
4 inspection by the Attorney General.
5 Section 70. Removal of vehicle from facility. Upon
6 reasonable notice and during the motor vehicle repair
7 facility's business hours, a consumer may remove a vehicle
8 from a motor vehicle repair facility upon paying for the
9 following:
10 (1) Labor actually performed.
11 (2) Parts actually installed.
12 (3) Parts ordered specifically for the consumer's
13 car if the order is not cancelable or the parts are not
14 returnable for cash or credit.
15 (4) Storage charges imposed in accordance with the
16 schedule of charges if disclosed to consumers prior to
17 repairs.
18 Section 75. Lien barred. A motor vehicle repair
19 facility that fails to comply with Section 15, 20, 25, 30,
20 35, 40, 45, 50, 55, or 60 is barred from asserting a
21 possessory or chattel lien for the amount of the unauthorized
22 parts or labor upon the motor vehicle or component.
23 Section 80. Unlawful acts or practices. Each of the
24 following acts or practices is unlawful when committed by a
25 motor vehicle repair facility:
26 (1) Advertising in a false, deceptive, or
27 misleading manner.
28 (2) Charging a consumer for parts not delivered or
29 installed or a labor operation or repair procedure that
30 has not actually been performed.
31 (3) Unauthorized operation of a consumer's vehicle
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1 for purposes not related to repair or diagnosis.
2 (4) Failing or refusing to provide a consumer, upon
3 request, a copy, at no charge, of any document signed by
4 the consumer.
5 (5) Retaining duplicative payment from both the
6 consumer and the warranty or extended service contract
7 provider for the same covered component, part, or labor.
8 (6) Charging a consumer for unnecessary repairs.
9 For purposes of this paragraph, "unnecessary repairs"
10 means those repairs for which there is no reasonable
11 basis for performing the service. A reasonable basis
12 includes: (i) that the repair service is consistent with
13 specifications established by law or the manufacturer of
14 the motor vehicle, component, or part; (ii) that the
15 repair is in accordance with usual and customary
16 practices; (iii) that the repair was performed at the
17 specific request of the consumer after the technician
18 disclosed to the consumer the reasons for recommending
19 the repair when the recommendation is not in accordance
20 with manufacturer specifications or accepted trade
21 practices; or (iv) that the repair is at the consumer's
22 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.
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1 (a) A violation of any of the provisions of this Act is
2 an unlawful practice under the Consumer Fraud and Deceptive
3 Business Practices Act. Under the Consumer Fraud and
4 Deceptive Business Practices Act whenever the Attorney
5 General or the State's Attorney has reason to believe that
6 any person is using, has used, or is about to use any method,
7 act or practice declared by the Consumer Fraud and Deceptive
8 Business Practices Act to be unlawful, and that the
9 proceedings would be in the public interest, he or she may
10 bring an action in the name of the People of the State
11 against that person to restrain by preliminary or permanent
12 injunction the use of the method, act, or practice. All
13 remedies, penalties, and authority granted to the Attorney
14 General and the State's Attorney by the Consumer Fraud and
15 Deceptive Business Practices Act shall be available for the
16 enforcement of this Act.
17 (b) Any consumer injured by a violation of this Act may
18 bring an action for the recovery of damages plus costs and
19 reasonable attorney's fees.