Full Text of HB4377 99th General Assembly
HB4377sam002 99TH GENERAL ASSEMBLY | Sen. Terry Link Filed: 5/20/2016
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| 1 | | AMENDMENT TO HOUSE BILL 4377
| 2 | | AMENDMENT NO. ______. Amend House Bill 4377, AS AMENDED, by | 3 | | replacing everything after the enacting clause with the | 4 | | following:
| 5 | | "Section 5. The Consumer Fraud and Deceptive Business | 6 | | Practices Act is amended by changing Section 2L as follows:
| 7 | | (815 ILCS 505/2L) (from Ch. 121 1/2, par. 262L)
| 8 | | Sec. 2L. Used motor vehicles; modification or disclaimer of | 9 | | implied warranty of merchantability limited. | 10 | | (a) Any retail sale of a used motor vehicle made after the | 11 | | effective date of this amendatory Act of the 99th General | 12 | | Assembly January 1,
1968 to a consumer by a licensed vehicle | 13 | | dealer new motor vehicle dealer or used motor vehicle
dealer | 14 | | within the meaning of Chapter 5 of the Illinois Vehicle Code or | 15 | | by an auction company at an auction that is open to the general | 16 | | public is
made subject to this Section.
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| 1 | | (b) This Section does not apply to vehicles with more than | 2 | | 185,000 miles at the time of sale. | 3 | | (c) Any sale of a used motor vehicle as described in | 4 | | subsection (a) may not exclude, modify, or disclaim the implied | 5 | | warranty of merchantability prescribed in Section 2-314 of the | 6 | | Uniform Commercial Code or limit the remedies for a breach of | 7 | | the warranty before midnight of the 15th calendar day after | 8 | | delivery of a used motor vehicle or until a used motor vehicle | 9 | | is driven 500 miles after delivery, whichever is earlier. In | 10 | | calculating time under this Section, a day on which the | 11 | | warranty is breached and all subsequent days in which the used | 12 | | motor vehicle fails to conform with the implied warranty of | 13 | | merchantability are excluded. In calculating distance under | 14 | | this Section, the miles driven to obtain or in connection with | 15 | | the repair, servicing, or testing of a used motor vehicle that | 16 | | fails to conform with the implied warranty of merchantability | 17 | | are excluded. An attempt to exclude, modify, or disclaim the | 18 | | implied warranty of merchantability or to limit the remedies | 19 | | for a breach of the warranty in violation of this Section | 20 | | renders a purchase agreement voidable at the option of the | 21 | | purchaser. | 22 | | (d) An implied warranty of merchantability is met if a used | 23 | | motor vehicle functions free of a defect in a power train | 24 | | component. As used in this Section, "power train component" | 25 | | means the engine block, head, all internal engine parts, oil | 26 | | pan and gaskets, water pump, intake manifold, transmission, and |
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| 1 | | all internal transmission parts, torque converter, drive | 2 | | shaft,
universal joints, rear axle and all rear axle internal | 3 | | parts, and rear wheel bearings. | 4 | | (e) The implied warranty of merchantability expires at | 5 | | midnight of the 15th calendar day after delivery of a used | 6 | | motor vehicle or when a used motor vehicle is driven 500 miles | 7 | | after delivery, whichever is earlier. In calculating time, a | 8 | | day on which the implied warranty of merchantability is | 9 | | breached is excluded and all subsequent days in which the used | 10 | | motor vehicle fails to conform with the warranty are also | 11 | | excluded. In calculating distance, the miles driven to or by | 12 | | the seller to obtain or in connection with the repair, | 13 | | servicing, or testing of a used motor vehicle that fails to | 14 | | conform with the implied warranty of merchantability are | 15 | | excluded. An implied warranty of merchantability does not | 16 | | extend to damage that occurs after the sale of the used motor | 17 | | vehicle that results from: | 18 | | (1) off-road use; | 19 | | (2) racing; | 20 | | (3) towing; | 21 | | (4) abuse; | 22 | | (5) misuse; | 23 | | (6) neglect; | 24 | | (7) failure to perform regular maintenance; and | 25 | | (8) failure to maintain adequate oil, coolant, and | 26 | | other required fluids or lubricants. |
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| 1 | | (f) If the implied warranty of merchantability described in | 2 | | this Section is breached, the consumer shall give reasonable | 3 | | notice to the seller no later than 2 business days after the | 4 | | end of the statutory warranty period. Before the consumer | 5 | | exercises another remedy pursuant to Article 2 of the Uniform | 6 | | Commercial Code, the seller shall have a reasonable opportunity | 7 | | to repair the used motor vehicle. The consumer shall pay | 8 | | one-half of the cost of the first 2 repairs necessary to bring | 9 | | the used motor vehicle into compliance with the warranty. The | 10 | | payments by the consumer are limited to a maximum payment of | 11 | | $100 for each repair; however, the consumer shall only be | 12 | | responsible for a maximum payment of $100 if the consumer | 13 | | brings in the vehicle for a second repair for the same defect. | 14 | | Reasonable notice as defined in this Section shall include, but | 15 | | not be limited to: | 16 | | (1) text, provided the seller has provided the consumer | 17 | | with a cell phone number; | 18 | | (2) phone call or message to the seller's business | 19 | | phone number provided on the seller's bill of sale for the | 20 | | purchase of the motor vehicle; | 21 | | (3) in writing to the seller's address provided on the | 22 | | seller's bill of sale for the purchase of the motor | 23 | | vehicle; | 24 | | (4) in person at the seller's address provided on the | 25 | | seller's bill of sale for the purchase of the motor | 26 | | vehicle. |
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| 1 | | (g) The maximum liability of a seller for repairs pursuant | 2 | | to this Section is limited to the purchase price paid for the | 3 | | used motor vehicle, to be refunded to the consumer or lender, | 4 | | as applicable, in exchange for return of the vehicle. | 5 | | (h) An agreement for the sale of a used motor vehicle | 6 | | subject to this Section is voidable at the option of the | 7 | | consumer, unless it contains on its face the following | 8 | | conspicuous statement printed in boldface 10-point or larger | 9 | | type set off from the body of the agreement: | 10 | | "Illinois law requires that this vehicle will be free of a | 11 | | defect in a power train component for 15 days or 500 miles | 12 | | after delivery, whichever is earlier, except with regard to | 13 | | particular defects disclosed on the first page of this | 14 | | agreement. "Power train component" means the engine block, | 15 | | head, all internal engine parts, oil pan and gaskets, water | 16 | | pump, intake manifold, transmission, and all internal | 17 | | transmission parts, torque converter, drive shaft, universal | 18 | | joints, rear axle and all rear axle internal parts, and rear | 19 | | wheel bearings. You (the consumer) will have to pay up to $100 | 20 | | for each of the first 2 repairs if the warranty is violated.". | 21 | | (i) The inclusion in the agreement of the statement | 22 | | prescribed in subsection (h) of this Section does not create an | 23 | | express warranty. | 24 | | (j) A consumer of a used motor vehicle may waive the | 25 | | implied warranty of merchantability only for a particular | 26 | | defect in the vehicle including, but not limited to, a rebuilt |
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| 1 | | or flood-branded title and only if all of the following | 2 | | conditions are satisfied: | 3 | | (1) the seller subject to this Section fully and | 4 | | accurately discloses to the consumer that because of | 5 | | circumstances unusual to the business, the used motor | 6 | | vehicle has a particular defect; | 7 | | (2) the consumer agrees to buy the used motor vehicle | 8 | | after disclosure of the defect; and | 9 | | (3) before the sale, the consumer indicates agreement | 10 | | to the waiver by signing and dating the following | 11 | | conspicuous statement that is printed on the first page of | 12 | | the sales agreement or on a separate document in boldface | 13 | | 10-point or larger type and that is written in the language | 14 | | in which the presentation was made: | 15 | | "Attention consumer: sign here only if the seller has | 16 | | told you that this vehicle has the following problem or | 17 | | problems and you agree to buy the vehicle on those terms: | 18 | | 1. ....................................................... | 19 | | 2. ....................................................... | 20 | | 3. .....................................................". | 21 | | (k) It shall be an affirmative defense to any claim under | 22 | | this Section that: | 23 | | (1) an alleged nonconformity does not substantially | 24 | | impair the use and market value of the motor vehicle; | 25 | | (2) a nonconformity is the result of abuse, neglect, or | 26 | | unauthorized modifications or alterations of the motor |
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| 1 | | vehicle; | 2 | | (3) a claim by a consumer was not filed in good faith; | 3 | | or | 4 | | (4) any other affirmative defense allowed by law. | 5 | | (l) Other than the 15-day, 500-mile implied warranty of | 6 | | merchantability identified herein, a seller subject to this | 7 | | Section is not required to provide any further express or | 8 | | implied warranties to a purchasing consumer unless: | 9 | | (1) the seller is required by federal or State law to | 10 | | provide a further express or implied warranty; or | 11 | | (2) the seller fails to fully inform and disclose to | 12 | | the consumer that the vehicle is being sold without any | 13 | | further express or implied warranties, other than the 15 | 14 | | day, 500 mile implied warranty of merchantability | 15 | | identified in this Section. | 16 | | (m) This Section does not apply to the sale of antique | 17 | | vehicles, as defined in the Illinois Vehicle Code, or to | 18 | | collector motor vehicles. | 19 | | (a) The dealer is liable to the purchasing consumer for the
| 20 | | following share of the cost of the repair of Power Train | 21 | | components for
a period of 30 days from date of delivery, | 22 | | unless the repairs have
become necessary by abuse, negligence, | 23 | | or collision. The burden of
establishing that a claim for | 24 | | repairs is not within this Section shall
be on the selling | 25 | | dealer. The dealer's share of such repair costs is:
| 26 | | (1) in the case of a motor vehicle which is not more than 2 |
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| 1 | | years
old, 50%;
| 2 | | (2) in the case of a motor vehicle which is 2 or more, but | 3 | | less than
3 years old, 25%;
| 4 | | (3) in the case of a motor vehicle which is 3 or more, but | 5 | | less than
4 years old, 10%; and
| 6 | | (4) in the case of a motor vehicle which is 4 or more years | 7 | | old,
none.
| 8 | | (b) Notwithstanding the foregoing, such a dealer and a | 9 | | purchasing
consumer may negotiate a sale and purchase that is | 10 | | not subject to this
Section if there is stamped on any purchase | 11 | | order, contract, agreement,
or other instrument to be signed by | 12 | | the consumer as a part of that
transaction, in at least | 13 | | 10-point bold type immediately above the
signature line, the | 14 | | following:
| 15 | | "THIS VEHICLE IS SOLD AS IS WITH NO WARRANTY
| 16 | | AS TO MECHANICAL CONDITION"
| 17 | | (c) As used in this Section, "Power Train components" means | 18 | | the
engine block, head, all internal engine parts, oil pan and | 19 | | gaskets,
water pump, intake manifold, transmission, and all | 20 | | internal transmission
parts, torque converter, drive shaft, | 21 | | universal joints, rear axle and
all rear axle internal parts, | 22 | | and rear wheel bearings.
| 23 | | (d) The repair liability means that the dealer will make | 24 | | necessary
Power Train component repairs in his shop, or in the | 25 | | shop of his service
affiliate, on the basis of his regular list | 26 | | price charge for parts and
labor, where the flat rate list |
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| 1 | | price does not exceed 50% of the selling
price of the vehicle | 2 | | at the time repairs are requested.
| 3 | | (e) The age of the vehicle shall be measured according to | 4 | | the
manufacturer's model year designation as shown on the | 5 | | Certificate of
Title or Registration Certificate. Vehicles | 6 | | shall be designated as
current year models, one year old, 2 | 7 | | year old, and so forth according to
the time that has elapsed | 8 | | since January 1 of the appropriate model year
so designated.
| 9 | | (f) This Section does not preclude the issuance of a | 10 | | warranty or
guarantee by a motor vehicle dealer or motor car | 11 | | manufacturer that meets
or exceeds the basic provisions of | 12 | | paragraph (a).
| 13 | | (g) After the effective date of this amendatory Act of | 14 | | 1989,
executives' and officials' cars when so advertised shall | 15 | | have been used
exclusively by executives of the parent motor | 16 | | car manufacturer's personnel
or by an executive of an | 17 | | authorized dealer in the same make of car. These
cars, so | 18 | | advertised, shall not have been sold to a member of the public
| 19 | | prior to the appearance of the advertisement.
| 20 | | Any person who violates this Section commits an unlawful | 21 | | practice
within the meaning of this Act.
| 22 | | (Source: P.A. 86-351; 87-1140.)
| 23 | | Section 99. Effective date. This Act takes effect July 1, | 24 | | 2017.".
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