HB5531 96TH GENERAL ASSEMBLY

LRB096 19100 DRJ 34491 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB5531

Introduced 2/9/2010, by Rep. Lisa M. Dugan

SYNOPSIS AS INTRODUCED:

815 ILCS 380/1	from Ch. 121 1/2, par. 1201
815 ILCS 380/2	from Ch. 121 1/2, par. 1202
815 ILCS 380/3	from Ch. 121 1/2, par. 1203
815 ILCS 380/4	from Ch. 121 1/2, par. 1204
815 ILCS 380/7	from Ch. 121 1/2, par. 1207
815 ILCS 380/8	from Ch. 121 1/2, par. 1208

Amends the New Vehicle Buyer Protection Act. Changes the short title to the New or Used Vehicle Buyer Protection Act. Adds a definition of "used vehicle" and makes other changes to make the Act applicable to used vehicles as well as new vehicles. Provides that a used vehicle may not be sold in this State by a seller to a consumer unless accompanied by an express written warranty covering the full cost of both parts and labor necessary to repair any defect that impairs the used vehicle's safety or use. Sets forth statutory warranty periods applicable to used vehicles, which vary according to a vehicle's mileage or age. Provides for no warranty in the case of a used vehicle that has been operated for 125,000 miles or more. Provides that the used vehicle warranty provisions do not apply to any used vehicle sold by a seller to a consumer for less than $700.

A BILL FOR

AN ACT concerning business.

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

Section 5. The New Vehicle Buyer Protection Act is amended by changing Sections 1, 2, 3, 4, 7, and 8 as follows:

(815 ILCS 380/1) (from Ch. 121 1/2, par. 1201)

Sec. 1. Short title. This Act shall be known and may be cited as the New or Used Vehicle Buyer Protection Act.

(Source: P.A. 85-1350.)

(815 ILCS 380/2) (from Ch. 121 1/2, par. 1202)

Sec. 2. Definitions. For the purposes of this Act, the following words have the meanings ascribed to them in this Section.

(a) "Consumer" means (i) an individual who purchases or leases for a period of at least one year a new vehicle, or purchases a used vehicle, from the seller for the purposes of transporting himself and others, as well as their personal property, for primarily personal, household or family purposes or (ii) a fire department, fire protection district, or township fire department that purchases or leases for a period of at least one year a new vehicle, or purchases a used vehicle, from the seller.

(b) "Express warranty" has the same meaning, for the purposes of this Act, as it has for the purposes of the Uniform Commercial Code.

(c) "New vehicle" means a passenger car, as defined in Section 1-157 of the Illinois Vehicle Code, a motor vehicle of the Second Division having a weight of under 8,000 pounds, as defined in Section 1-146 of that Code, a vehicle purchased by a fire department, a fire protection district, or a township fire department, and a recreational vehicle, except for a camping trailer or travel trailer, that does not qualify under the definition of a used motor vehicle, as set forth in Section 1-216 of that Code.

(d) "Nonconformity" refers to a new vehicle's failure to conform to all express warranties applicable to such vehicle, which failure substantially impairs the use, market value or safety of that vehicle.

(e) "Seller" means the manufacturer of a new vehicle, that manufacturer's agent or distributor or that manufacturer's authorized dealer. "Seller" also means, with respect to a used vehicle, a person who is required to be licensed under Section 5-102 of the Illinois Vehicle Code. "Seller" also means, with respect to a new or used vehicle which is also a modified vehicle, as defined in Section 1-144.1 of the Illinois Vehicle Code, as now or hereafter amended, the person who modified the vehicle and that person's agent or distributor or that person's authorized dealer. "Seller" also means, with respect to leased new vehicles, the manufacturer, that manufacturer's agent or distributor or that manufacturer's dealer, who transfers the right to possession and use of goods under a lease.

(f) "Statutory warranty period" means:

(1) In the case of a new vehicle, the period of one year or 12,000 miles, whichever occurs first after the date of the delivery of the a new vehicle to the consumer who purchased or leased it.

(2) In the case of a used vehicle:

(A) The period of 90 days or 3,750 miles, whichever occurs first after the date of the delivery of the used vehicle to the consumer who purchased it, (i) if the vehicle, at the time of sale, has been operated less than 40,000 miles or (ii) if the vehicle's true mileage is unknown at the time of sale and the vehicle is 3 years old or less.

(B) The period of 60 days or 2,500 miles, whichever occurs first after the date of the delivery of the used vehicle to the consumer who purchased it, (i) if the vehicle, at the time of sale, has been operated at least 40,000 miles but less than 80,000 miles or (ii) if the vehicle's true mileage is unknown at the time of sale and the vehicle is more than 3, but less than 6, years old.

(C) The period of 30 days or 1,250 miles, whichever occurs first after the date of the delivery of the used vehicle to the consumer who purchased it, (i) if the vehicle, at the time of sale, has been operated at least 80,000 miles but less than 125,000 miles or (ii) if the vehicle's true mileage is unknown at the time of sale and the vehicle is 6 years old or more.

For purposes of this paragraph (2), a used vehicle's age shall be determined by subtracting its model year from the year in which the consumer purchased the used vehicle.

(g) "Lease cost" includes deposits, fees, taxes, down payments, periodic payments, and any other amount paid to a seller by a consumer in connection with the lease of a new vehicle.

(h) "Used vehicle" means a passenger car, as defined in Section 1-157 of the Illinois Vehicle Code, a motor vehicle of the Second Division having a weight of under 8,000 pounds, as defined in Section 1-146 of that Code, a vehicle purchased by a fire department, a fire protection district, or a township fire department, and a recreational vehicle, except for a camping trailer or travel trailer, that does not qualify under the definition of a new vehicle as set forth in Section 1-148.4 of that Code.

(Source: P.A. 95-802, eff. 1-1-09.)

(815 ILCS 380/3) (from Ch. 121 1/2, par. 1203)

Sec. 3. Failure of vehicle to conform; remedies; presumptions.

(a) If after a reasonable number of attempts the seller is unable to conform the new vehicle to any of its applicable express warranties, the manufacturer shall either provide the consumer with a new vehicle of like model line, if available, or otherwise a comparable motor vehicle as a replacement, or accept the return of the vehicle from the consumer and refund to the consumer the full purchase price or lease cost of the new vehicle, including all collateral charges, less a reasonable allowance for consumer use of the vehicle. For purposes of this subsection Section, "collateral charges" does not include taxes paid by the purchaser on the initial purchase of the new vehicle. The retailer who initially sold the vehicle may file a claim for credit for taxes paid pursuant to the terms of Sections 6, 6a, 6b, and 6c of the Retailers' Occupation Tax Act. Should the vehicle be converted, modified or altered in a way other than the manufacturer's original design, the party which performed the conversion or modification shall be liable under the provisions of this Act, provided the part or parts causing the vehicle not to perform according to its warranty were altered or modified.

(a-5) A used vehicle may not be sold in this State by a seller to a consumer unless accompanied by an express written warranty covering the full cost of both parts and labor necessary to repair any defect that impairs the used vehicle's safety or use. The consumer may, however, be required to pay no more than $100 total toward the repair of any covered defect, series of defects, or combination of defects during the warranty period. Defects that affect only appearance shall not be deemed to impair safety or use for the purposes of this subsection. For the purposes of this subsection, "defect" includes a defect, a malfunction, or any combination of defects or malfunctions.

Defects or malfunctions that involve parts or components that are covered or are warranted under an express warranty issued by the seller of the used vehicle shall be excluded from this subsection if the following conditions have been met:

(1) The manufacturer's warranty has been duly assigned or transferred to the consumer, is enforceable according to its terms, and is not inconsistent with this subsection.

(2) The seller has assured that the repair authorized by the manufacturer's express warranty was made.

The terms of the seller's warranty shall be tolled for any period of time the used vehicle is out of service by reason of repair under the manufacturer's warranty.

If after a reasonable number of attempts the seller is unable to conform the used vehicle to any of its applicable express warranties, the seller shall accept the return of the vehicle from the consumer and refund to the consumer the full purchase price of the used vehicle, including all collateral charges, less a reasonable allowance for consumer use of the vehicle. For purposes of this subsection (a-5), "collateral charges" does not include taxes paid by the consumer on the initial purchase of the used vehicle. The seller who sold the used vehicle may file a claim for credit for taxes paid pursuant to the terms of Sections 6, 6a, 6b, and 6c of the Retailers' Occupation Tax Act. Should the vehicle be converted, modified, or altered in a way other than the manufacturer's original design, the party that performed the conversion or modification shall be liable under the provisions of this Act, provided the part or parts causing the vehicle not to perform according to its warranty were altered or modified.

This Act does not apply to any used vehicle sold by a seller to a consumer for less than $700.

(b) A presumption that a reasonable number of attempts have been undertaken to conform a new or used vehicle to its express warranties shall arise where, within the statutory warranty period: ,

(1) the same nonconformity has been subject to repair by the seller, its agents or authorized dealers during the statutory warranty period, 4 or more times, and such nonconformity continues to exist; or

(2) the vehicle has been out of service by reason of repair of nonconformities for a total of 30 or more business days (in the case of a new vehicle) or 10 or more business days (in the case of a used vehicle) during the statutory warranty period.

(c) A reasonable allowance for consumer use of a vehicle is that amount directly attributable to the wear and tear incurred by the new or used vehicle as a result of its having been used prior to the first report of a nonconformity to the seller, and during any subsequent period in which it is not out of service by reason of repair.

(d) The fact that a new or used vehicle's failure to conform to an express warranty is the result of abuse, neglect or unauthorized modifications or alterations is an affirmative defense to claims brought under this Act.

(e) The statutory warranty period of a new or used vehicle shall be suspended for any period of time during which repair services are not available to the consumer because of a war, invasion or strike, or a fire, flood or other natural disaster.

(f) Refunds made pursuant to this Act shall be made to the consumer, and lien holder if any exists, as their respective interests appear.

(g) For the purposes of this Act, a manufacturer sells a new vehicle to a consumer when he provides that consumer with a replacement vehicle pursuant to subsection (a).

(h) In no event shall the presumption herein provided apply against a manufacturer, his agent, distributor or dealer unless the manufacturer has received prior direct written notification from or on behalf of the consumer, and has an opportunity to correct the alleged defect.

(Source: P.A. 89-359, eff. 8-17-95; 89-375, eff. 8-18-95; 89-626, eff. 8-9-96.)

(815 ILCS 380/4) (from Ch. 121 1/2, par. 1204)

Sec. 4. Informal settlement procedure.

(a) The provisions of subsection (a) or (a-5) of Section 3 shall not apply unless the consumer has first resorted to an informal settlement procedure applicable to disputes to which either of those subsections that subsection would apply where:

(1) The manufacturer of the new vehicle or the seller of the used vehicle has established such a procedure;

(2) The procedure conforms:

(i) substantially with the provisions of Title 16 CFR , Code of Federal Regulation, Part 703, as from time to time amended, and

(ii) to the requirements of subsection (c); and

(3) The consumer has received from the seller adequate written notice of the existence of the procedure.

Adequate written notice includes but is not limited to the incorporation of the informal dispute settlement procedure into the terms of the written warranty to which the vehicle does not conform.

(b) If the consumer is dissatisfied with the decision reached in an informal dispute settlement procedure or the results of such a decision, he or she may bring a civil action to enforce his or her rights under subsection (a) or (a-5) of Section 3. The decision reached in the informal dispute settlement procedure is admissible in such a civil action. The period of limitations for a civil action to enforce a consumer's rights or remedies under subsection (a) or (a-5) of Section 3 shall be extended for a period equal to the number of days the subject matter of the civil action was pending in the informal dispute settlement procedure.

(c) A disclosure of the decision in an informal dispute settlement procedure shall include notice to the consumer of the provisions of subsection (b).

(Source: P.A. 85-1350.)

(815 ILCS 380/7) (from Ch. 121 1/2, par. 1207)

Sec. 7. Written statement of consumer's rights. The seller who sells a new or used vehicle to a consumer, shall, upon delivery of that vehicle to the consumer, provide the consumer with a written statement clearly and conspicuously setting forth in full detail the consumer's rights under subsection (a) or (a-5) of Section 3, and the presumptions created by subsection (b) of that Section.

(Source: P.A. 85-1350.)

(815 ILCS 380/8) (from Ch. 121 1/2, par. 1208)

Sec. 8. Application of Act. This Act shall apply to new motor vehicles beginning with the model year following the effective date of this Act. Except as otherwise provided in this Act, this Act shall apply to any used vehicle sold by a seller to a consumer on or after the effective date of this amendatory Act of the 96th General Assembly.

(Source: P.A. 83-768.)