Public Act 90-0426 of the 90th General Assembly

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Public Act 90-0426

SB1039 Enrolled                               LRB9002918DJpkA

    AN ACT concerning the automotive repair industry.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

    Section  1.   Short  title.  This Act may be cited as the
Automotive Repair Act.

    Section 5.  Legislative finding.  The  automotive  repair
industry  supports  good  communication between motor vehicle
repair facilities and their customers. The  General  Assembly
recognizes   that   improved   communications   and  accurate
representations  between  automotive  repair  facilities  and
their customers will increase consumer confidence, reduce the
likelihood  of  disputes  arising,  and  promote   fair   and
nondeceptive  practices,  thereby  enhancing  the  safety and
reliability of  motor  vehicles  serviced  by  motor  vehicle
repair facilities in the State of Illinois.

    Section 10.  Definitions.  In this Act:
    "Automotive repair" includes, but is not limited to:
         (1)  All repairs to motor vehicles that are commonly
    performed  in  a motor vehicle repair facility by a motor
    vehicle    technician,    including    the     diagnosis,
    installation,   exchange,  or  repair  of  mechanical  or
    electrical  parts  or  units   for   any   vehicle,   the
    performance of any electrical or mechanical adjustment to
    any  vehicle,  or  the  performance  of  any service work
    required  for  routine  maintenance  or  repair  of   any
    vehicle.   The  term  does  not  include commercial fleet
    repair or maintenance transactions involving  2  or  more
    vehicles  or  ongoing  service  or  maintenance contracts
    involving vehicles used primarily for business purposes.
         (2)  All  repair  work  in  motor   vehicle   repair
    facilities  that  perform  one or more specialties within
    the automotive repair service  industry,  including,  but
    not  limited  to, refinishing, brake, electrical, exhaust
    repair  or  installation,  front-end,  radiators,  tires,
    transmission,   tune-up,   and   windshield.     However,
    transactions involving the retail purchase of merchandise
    when  a  facility installs the merchandise as part of the
    transaction at the discretion of the customer for a  firm
    price are not included.  These transactions shall include
    but  not  be  limited  to tires, batteries, oil, and lube
    jobs.
    "Automotive repair facility"  or  "motor  vehicle  repair
facility" means any person, firm, association, or corporation
that  for  compensation engages in the business of automotive
repair or  diagnosis,  or  both,  of  malfunctions  of  motor
vehicles.
    A  "used" part consists of a used assembly removed from a
vehicle and installed on a vehicle undergoing repair  without
the benefit of being rebuilt or remanufactured.

    Section 15. Disclosures to consumers; estimates.
    (a)  Disclosures required.  No work for compensation that
exceeds    $100   shall   be   commenced   without   specific
authorization from the consumer  after  the  disclosures  set
forth in this Section.
    (b)  Estimated   costs.    Every   motor  vehicle  repair
facility shall either (i) give to  each  consumer  a  written
estimated price for labor and parts for a specific repair and
shall not charge for work done or parts supplied in an amount
that  exceeds  the  estimate by more than 10% without oral or
written consent of the consumer or (ii) give to each consumer
a written price limit for each specific repair and shall  not
exceed  that  limit  without  oral  or written consent of the
consumer.  Either option shall include  an  estimate  of  the
time  necessary  to  complete the repair, if in excess of one
working day. The estimate shall include the  total  costs  to
repair the vehicle.
    Estimates  shall  include  all  charges to be paid by the
consumer to complete the repair, including  any  charges  for
estimates  and  diagnostics.  However, transactions involving
the retail purchase of merchandise when a  facility  installs
the  merchandise as part of the transaction at the discretion
of the customer for a firm price  are  not  included.   These
transactions  shall  include  but  not  be  limited to tires,
batteries, oil, and lube jobs.
         (1)  Description of  parts.   Motor  vehicle  repair
    facilities shall describe in the estimate the major parts
    needed to effectuate the repair and whether parts are new
    or used.
         (2)  Calculation  of  labor  costs.  Estimates shall
    indicate that the motor vehicle repair facility may use a
    combination  of  industry  standard  flat   rate   (time)
    manuals,  actual  time,  or  condition  of the vehicle to
    determine labor costs.  This disclosure mandate may  also
    be  fulfilled  by  means of a sign that provides the same
    information to the consumer.  Such a sign shall be posted
    at a location that can be easily viewed by the consumer.
         (3)  Required or suggested repairs.  Estimates shall
    indicate whether the estimated repairs  are  required  or
    suggested.
         (4)  Disassembly  and  reassembly charges.  If it is
    necessary to disassemble,  or  partially  disassemble,  a
    vehicle  or  vehicle  component  in  order to provide the
    consumer with a written estimate for required  repair  or
    maintenance,  the  estimate  shall  show  the cost of any
    disassembly or  reassembly,  or  both,  if  the  consumer
    elects  not  to proceed with the repair or maintenance of
    the vehicle.
         (5)  Date.  The estimate shall include the date  the
    estimate  was  prepared  or  the  date  the  vehicle  was
    presented to the motor vehicle repair facility for repair
    or  servicing,  or  both,  the  odometer  reading  on the
    vehicle at the time it was left with  the  motor  vehicle
    repair facility, and a promised date of delivery.

    Section  20.  Notice of consumer's rights; estimate. When
an estimate is required to be  presented  to  a  consumer,  a
motor     vehicle  repair  facility  shall  disclose  to  the
prospective consumer an  estimated  price  quotation  or  the
option  to  waive  the  price  quotation  by  completing  the
following statement with the consumer's signature:
    "You are entitled to a price estimate for the repairs you
have  authorized.  The  repair  price  may  be  less than the
estimate but shall not exceed (1) any price limited  estimate
or  (2)  any  parts  and  labor  estimate  by  more than 10%.
Additional repairs may not be performed without your consent.
You may waive your right to a written  estimate  and  require
that  you be notified if the price exceeds an amount you have
specified.
    You may waive your right to an estimate, which gives  the
motor  vehicle  repair  facility  the  right to set the price
without your permission.  Your signature will  indicate  your
selection.
    (a)  I  request  an  estimate in writing before you begin
repairs.
Signature .................................
    (b)  Please proceed with repairs but call me for approval
before continuing if the price exceeds $ .............
Signature ..........................................
    (c)  I do not want an estimate and you may set the  price
of repairs.
Signature ...................................
Date ..........  Time..........
    This  estimated  price  for  authorized  repairs  will be
honored if the motor vehicle is  delivered  to  the  facility
within  the  time  period  agreed  to by the consumer and the
motor vehicle repair facility."
    However, transactions involving the  retail  purchase  of
merchandise  when a facility installs the merchandise as part
of the transaction at the discretion of the  customer  for  a
firm  price  are  not  included.   These  transactions  shall
include but not be limited to tires, batteries, oil, and lube
jobs.

    Section  25.   Estimated  price  insufficient.   If it is
determined that the estimated price is  insufficient  because
of  unforeseen  circumstances, the consumer's consent must be
obtained before the work estimated is done or parts estimated
are supplied.  If the consumer's consent is oral,  the  motor
vehicle  repair  facility  shall  make a notation on the work
order or estimate and on the invoice of the date, time,  name
of  person  authorizing the additional repairs, and telephone
number called, if any, together with a specification  of  the
additional parts and labor and the total additional cost.

    Section 30.  Consumer's authorization of repairs or other
action.   After  receiving  the  estimate,  the  owner or the
owner's agent may (i) authorize the repairs at  the  estimate
of  cost  and time in writing, (ii) request the return of the
motor vehicle in a disassembled state, or (iii) request  that
the  vehicle be assembled in reasonably the same condition as
when released to the motor vehicle repair facility, in  which
case  the  motor vehicle repair facility shall make the motor
vehicle available for possession within 3 working days  after
the  time  of request, unless parts are not available, making
additional time necessary.  The motor vehicle repair facility
may receive payment for only those items on the  schedule  of
charges to which the facility is entitled.

    Section  35.   Inability  to  deliver  motor  vehicle  to
facility  during  business hours. When the consumer is unable
to deliver the motor vehicle  to  the  motor  vehicle  repair
facility during business hours and the consumer has requested
the  motor  vehicle repair facility to take possession of the
motor vehicle for the purpose of repairing or estimating  the
cost of repairing the motor vehicle, the motor vehicle repair
facility may not undertake the diagnosing or repairing of any
malfunction  of the motor vehicle for compensation unless the
motor vehicle repair facility has complied with  all  of  the
following conditions:
         (1)  The  motor vehicle repair facility has prepared
    a written estimate or a firm price quotation of the price
    for  labor  and  parts  necessary  to  repair  the  motor
    vehicle.
         (2)  By telephone or  otherwise,  the  consumer  has
    been given all of the material information on the written
    estimate  or  firm  price quotation, and the consumer has
    approved the written estimate or firm price quotation.
         (3)  The consumer has  given  his  or  her  oral  or
    written   authorization   to  the  motor  vehicle  repair
    facility to make the  repairs  pursuant  to  the  written
    estimate or firm price quotation.
    If  the  consumer's  authorization  is  oral,  the  motor
vehicle  repair  facility  shall  make,  on  both the written
estimate or firm price quotation and the invoice, a  notation
of  the name of the person authorizing the repairs, the date,
the time, and the  telephone  number  called,  if  any.   Any
charge  for parts or labor in excess of the original estimate
must be separately authorized by the consumer as provided  in
subsection (b) of Section 15 and in Section 25.
    Section  40.   Motor  vehicle  repair  facility unable to
complete repair in time. If the motor vehicle repair facility
is unable to complete the repairs in the time  promised,  the
facility  shall notify the owner or the owner's agent of this
fact.  After receiving that notification  the  owner  or  the
owner's  agent  may  request  return  of the motor vehicle in
either an assembled or disassembled state, in which case  the
motor  vehicle  repair  facility shall make the motor vehicle
available for possession within 3 working days from the  date
of the request. The motor vehicle repair facility may receive
payment for the work actually done and for those items on the
schedule of charges to which the facility is entitled.

    Section  45.   Consumer's waiver of estimate.  A consumer
may waive the right to receive  a  written  estimate  if  the
waiver  is  voluntary  and made without coercion by the motor
vehicle repair facility.  A motor vehicle repair facility  or
anyone  in  its employ shall not make use of the waiver in an
attempt to evade this Act.  Nothing in this Section shall  be
construed  as  requiring  a  motor vehicle repair facility to
give a written estimated price if the  motor  vehicle  repair
facility does not agree to perform the requested repair.

    Section 50.  Disclosures to consumers; invoices.
    (a)  Disclosures  required.   Whether  or  not  a written
estimate is required, parts and labor  provided  by  a  motor
vehicle  repair  facility  shall  be  clearly  and accurately
recorded in writing on an invoice and shall  include  all  of
the items set forth in this Section.
    (b)  Itemization   of  cost  of  repair  performed.   The
invoice  shall  show  the  motor  vehicle  repair  facility's
business name and address,  the  date  of  the  invoice,  the
odometer  reading  at  the time the invoice was prepared, the
name of the consumer, the description of the vehicle, and the
terms and time limit of any guarantee  for  the  repair  work
performed.   In  addition,  the  invoice  shall  describe all
repair  work  done  by  a  motor  vehicle  repair   facility,
including  all  warranty  work, and shall separately identify
(i) each major part supplied in a manner so that the consumer
can understand what was purchased and (ii)  the  total  price
charged for all parts and labor.
    Service  work and parts shall be listed separately on the
invoice, which  shall  also  state  separately  the  subtotal
prices  for  service  work and for parts, not including sales
tax, and shall  state  separately  the  sales  tax,  if  any,
applicable to each.
    The  invoice  shall  itemize  any  additional charges and
include those charges in the total presented to the consumer.
    (c)  Description of parts installed.  The  invoice  shall
include a description of the major parts installed.
    (d)  Copies  of  invoices.  A legible copy of the invoice
shall be given to the consumer and a legible  copy  shall  be
retained by the motor vehicle repair facility for a period of
2  years  from  the  date  of  repair  as a part of the motor
vehicle repair facility's records, which  may  be  maintained
in an electronic format.  Records may be stored at a separate
location.

    Section    55.     Consumer    disclosures;   guarantees;
warranties.
    (a)  If  a  motor  vehicle  repair  facility  provides  a
warranty on repair parts and labor, the  facility  shall  put
the  warranty  in  writing  and  give  a  legible copy to the
consumer.  The consumer's copy of the warranty  must  contain
the following:
         (1)  The   nature   and   extent  of  the  warranty,
    including a description of parts or service  included  in
    or excluded from the warranty.
         (2)  The   duration   of   the   warranty   and  the
    requirements to be performed by the warrantee before  the
    warrantor will fulfill the warranty.
         (3)  All  conditions and limitations of the warranty
    and the manner in which the warrantor  will  fulfill  the
    warranty, such as by repair, replacement, or refund.
         (4)  Any options of the warrantor or warrantee.
         (5)  The warrantor's identity and address.
    (b)  When repair or diagnostic work is performed pursuant
to  a warranty, a motor vehicle repair facility shall give an
estimate of the time to complete the repairs.

    Section 60.  Consumer disclosures; required signs.  Every
motor vehicle repair facility shall post in a prominent place
on the business premises one or more signs,  readily  visible
to customers, in the following form:
    YOUR CUSTOMER RIGHTS. UNLESS THE FACILITY PROVIDES A FIRM
PRICE QUOTATION, YOU ARE ENTITLED BY LAW TO:
    1.  A  WRITTEN  ESTIMATE  FOR REPAIRS THAT WILL COST MORE
THAN $100 UNLESS WAIVED OR ABSENT FACE-TO-FACE  CONTACT  (SEE
ITEM 3 BELOW).
    2.  AUTHORIZE  ORALLY  OR  IN  WRITING  ANY  REPAIRS THAT
EXCEED THE ESTIMATED TOTAL PRE-SALES-TAX COST  BY  MORE  THAN
10% OR THAT EXCEED THE LIMITED PRICE ESTIMATE.
    3.  AUTHORIZE  ANY  REPAIRS  ORALLY OR IN WRITING IF YOUR
VEHICLE IS  LEFT  WITH  THE  MOTOR  VEHICLE  REPAIR  FACILITY
WITHOUT  FACE-TO-FACE  CONTACT  BETWEEN  YOU  AND  THE  MOTOR
VEHICLE REPAIR FACILITY PERSONNEL.
    IF  YOU  HAVE  AUTHORIZED A REPAIR IN ACCORDANCE WITH THE
ABOVE INFORMATION, YOU ARE REQUIRED TO PAY FOR THE  COSTS  OF
THE REPAIR PRIOR TO TAKING THE VEHICLE FROM THE PREMISES.
    The  first line of each sign shall be in letters not less
than 1.5 inches in height, and the remaining lines  shall  be
in letters not less than 0.5 inch in height.
    Section  65.   Recordkeeping.  Every motor vehicle repair
facility shall maintain copies of  estimates  for  contracted
work  and all  invoices.  The copies, which may be maintained
in an electronic format,  shall be kept for 2 years and shall
be available for inspection by the Attorney General.

    Section 70.   Removal  of  vehicle  from  facility.  Upon
reasonable   notice  and  during  the  motor  vehicle  repair
facility's business hours, a consumer may  remove  a  vehicle
from  a  motor  vehicle  repair  facility upon paying for the
following:
         (1)  Labor actually performed.
         (2)  Parts actually installed.
         (3)  Parts ordered specifically for  the  consumer's
    car  if  the order is not cancelable or the parts are not
    returnable for cash or credit.
         (4)  Storage charges imposed in accordance with  the
    schedule  of  charges  if disclosed to consumers prior to
    repairs.

    Section  75.   Lien  barred.   A  motor  vehicle   repair
facility  that  fails  to comply with Section 15, 20, 25, 30,
35, 40, 45,  50,  55,  or  60  is  barred  from  asserting  a
possessory or chattel lien for the amount of the unauthorized
parts or labor upon the motor vehicle or component.

    Section  80.   Unlawful  acts  or practices.  Each of the
following acts or practices is unlawful when committed  by  a
motor vehicle repair facility:
         (1)  Advertising   in   a   false,   deceptive,   or
    misleading manner.
         (2)  Charging  a consumer for parts not delivered or
    installed or a labor operation or repair  procedure  that
    has not actually been performed.
         (3)  Unauthorized  operation of a consumer's vehicle
    for purposes not related to repair or diagnosis.
         (4)  Failing or refusing at  the  time  of  sale  to
    provide  a  consumer, upon request, a copy, at no charge,
    of any document signed by the consumer.
         (5)  Retaining duplicative  payment  from  both  the
    consumer  and  the  warranty or extended service contract
    provider for the same covered component, part, or labor.
         (6)  Charging a consumer  for  unnecessary  repairs.
    For  purposes  of  this  paragraph, "unnecessary repairs"
    means those repairs for  which  there  is  no  reasonable
    basis  for  performing  the  service.  A reasonable basis
    includes: (i) that the repair service is consistent  with
    specifications  established by law or the manufacturer of
    the motor vehicle, component,  or  part;  (ii)  that  the
    repair   is   in  accordance  with  usual  and  customary
    practices; (iii) that the repair  was  performed  at  the
    specific  request  of  the  consumer after the technician
    disclosed to the consumer the basis for recommending  the
    repair  when the recommendation is not in accordance with
    manufacturer specifications or accepted trade  practices;
    or (iv) that the repair is at the consumer's request.
         (7)  Misrepresenting   the   terms  of  a  warranty,
    guarantee, or service agreement.
         (8)  Altering a motor vehicle to create a  condition
    requiring repair.
         (9)  Failing  to  honor  a  warranty,  guarantee, or
    service agreement  to  which  the  motor  vehicle  repair
    facility is a party.
         (10)  Charging  or receiving payment for repairs not
    authorized by the consumer under Section 15, 20, 25,  30,
    35, 40, 45, 50, 55, or 60.

    Section  85.   Violations.  Whenever an automotive repair
facility is  knowingly engaged in or has knowingly engaged in
a persistent practice or  pattern  of  conduct  at  a  single
location  that  violates  this Act, that knowing,  persistent
practice or pattern of conduct shall be  deemed  an  unlawful
act  or    practice  under  the  Consumer Fraud and Deceptive
Business Practices Act.   In the  case  of  such  a  knowing,
persistent  practice  or  pattern  of conduct, all  remedies,
penalties, and authority available to  the  Attorney  General
and  the   several State's Attorneys under the Consumer Fraud
and Deceptive Business  Practices Act for the enforcement  of
that Act shall be available for the  enforcement of this Act.

    Section  190.   The Consumer Fraud and Deceptive Business
Practices  Act is amended by changing Section 2Z as follows:

    (815 ILCS 505/2Z) (from Ch. 121 1/2, par. 262Z)
    Sec. 2Z.  Violations  of  other  Acts.   Any  person  who
knowingly  violates  the  Automotive  Repair  Act,  the Dance
Studio Act, the Physical Fitness Services  Act,  the  Hearing
Instrument  Consumer Protection Act, the Illinois Union Label
Act, the Job  Referral  and  Job  Listing  Services  Consumer
Protection Act, the Travel Promotion Consumer Protection Act,
the   Credit   Services   Organizations  Act,  the  Automatic
Telephone Dialers Act,  the  Pay-Per-Call  Services  Consumer
Protection Act, the Telephone Solicitations Act, the Illinois
Funeral  or  Burial  Funds Act, the Cemetery Care Act, or the
Pre-Need Cemetery Sales  Act  commits  an  unlawful  practice
within the meaning of this Act.
(Source:  P.A.  88-288;  89-72,  eff.  12-31-95; 89-615, eff.
8-9-96.)

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