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Full Text of HB1560  100th General Assembly

HB1560ham001 100TH GENERAL ASSEMBLY

Rep. Rita Mayfield

Filed: 4/18/2017

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 1560

2    AMENDMENT NO. ______. Amend House Bill 1560 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Consumer Fraud and Deceptive Business
5Practices Act is amended by changing Section 2L as follows:
 
6    (815 ILCS 505/2L)  (from Ch. 121 1/2, par. 262L)
7    (Text of Section before amendment by P.A. 99-768)
8    Sec. 2L. Any retail sale of a motor vehicle made after
9January 1, 1968 to a consumer by a new motor vehicle dealer or
10used motor vehicle dealer within the meaning of Chapter 5 of
11the Illinois Vehicle Code is made subject to this Section.
12    (a) The dealer is liable to the purchasing consumer for the
13following share of the cost of the repair of Power Train
14components for a period of 30 days from date of delivery,
15unless the repairs have become necessary by abuse, negligence,
16or collision. The burden of establishing that a claim for

 

 

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1repairs is not within this Section shall be on the selling
2dealer. The dealer's share of such repair costs is:
3    (1) in the case of a motor vehicle which is not more than 2
4years old, 50%;
5    (2) in the case of a motor vehicle which is 2 or more, but
6less than 3 years old, 25%;
7    (3) in the case of a motor vehicle which is 3 or more, but
8less than 4 years old, 10%; and
9    (4) in the case of a motor vehicle which is 4 or more years
10old, none.
11    (b) Notwithstanding the foregoing, such a dealer and a
12purchasing consumer may negotiate a sale and purchase that is
13not subject to this Section if there is stamped on any purchase
14order, contract, agreement, or other instrument to be signed by
15the consumer as a part of that transaction, in at least
1610-point bold type immediately above the signature line, the
17following:
18
"THIS VEHICLE IS SOLD AS IS WITH NO WARRANTY
19
AS TO MECHANICAL CONDITION"
20    (c) As used in this Section, "Power Train components" means
21the engine block, head, all internal engine parts, oil pan and
22gaskets, water pump, intake manifold, transmission, and all
23internal transmission parts, torque converter, drive shaft,
24universal joints, rear axle and all rear axle internal parts,
25and rear wheel bearings.
26    (d) The repair liability means that the dealer will make

 

 

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1necessary Power Train component repairs in his shop, or in the
2shop of his service affiliate, on the basis of his regular list
3price charge for parts and labor, where the flat rate list
4price does not exceed 50% of the selling price of the vehicle
5at the time repairs are requested.
6    (e) The age of the vehicle shall be measured according to
7the manufacturer's model year designation as shown on the
8Certificate of Title or Registration Certificate. Vehicles
9shall be designated as current year models, one year old, 2
10year old, and so forth according to the time that has elapsed
11since January 1 of the appropriate model year so designated.
12    (f) This Section does not preclude the issuance of a
13warranty or guarantee by a motor vehicle dealer or motor car
14manufacturer that meets or exceeds the basic provisions of
15paragraph (a).
16    (g) After the effective date of this amendatory Act of
171989, executives' and officials' cars when so advertised shall
18have been used exclusively by executives of the parent motor
19car manufacturer's personnel or by an executive of an
20authorized dealer in the same make of car. These cars, so
21advertised, shall not have been sold to a member of the public
22prior to the appearance of the advertisement.
23    Any person who violates this Section commits an unlawful
24practice within the meaning of this Act.
25(Source: P.A. 86-351; 87-1140.)
 

 

 

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1    (Text of Section after amendment by P.A. 99-768)
2    Sec. 2L. Used motor vehicles; modification or disclaimer of
3implied warranty of merchantability limited.
4    (a) Any retail sale of a used motor vehicle made after the
5effective date of this amendatory Act of the 99th General
6Assembly to a consumer by a licensed vehicle dealer within the
7meaning of Chapter 5 of the Illinois Vehicle Code or by an
8auction company at an auction that is open to the general
9public is made subject to this Section.
10    (b) This Section does not apply to vehicles with more than
11150,000 miles at the time of sale. In addition, this Section
12does not apply to vehicles with titles that have been branded
13"rebuilt" or "flood".
14    (c) Any sale of a used motor vehicle as described in
15subsection (a) may not exclude, modify, or disclaim the implied
16warranty of merchantability prescribed in Section 2-314 of the
17Uniform Commercial Code or limit the remedies for a breach of
18the warranty before midnight of the 15th calendar day after
19delivery of a used motor vehicle or until a used motor vehicle
20is driven 500 miles after delivery, whichever is earlier. In
21calculating time under this Section, a day on which the
22warranty is breached and all subsequent days in which the used
23motor vehicle fails to conform with the implied warranty of
24merchantability are excluded, but the warranty shall expire in
25any event on midnight of the 30th calendar day after delivery.
26In calculating distance under this Section, the miles driven to

 

 

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1obtain or in connection with the repair, servicing, or testing
2of a used motor vehicle that fails to conform with the implied
3warranty of merchantability are excluded. An attempt to
4exclude, modify, or disclaim the implied warranty of
5merchantability or to limit the remedies for a breach of the
6warranty in violation of this Section renders a purchase
7agreement voidable at the option of the purchaser.
8    (d) An implied warranty of merchantability is met if a used
9motor vehicle functions free of a defect in a power train
10component. As used in this Section, "power train component"
11means the engine block, head, all internal engine parts, oil
12pan and gaskets, water pump, intake manifold, transmission, and
13all internal transmission parts, torque converter, drive
14shaft, universal joints, rear axle and all rear axle internal
15parts, and rear wheel bearings.
16    (e) The implied warranty of merchantability expires at
17midnight of the 15th calendar day after delivery of a used
18motor vehicle or when a used motor vehicle is driven 500 miles
19after delivery, whichever is earlier. In calculating time, a
20day on which the implied warranty of merchantability is
21breached is excluded and all subsequent days in which the used
22motor vehicle fails to conform with the warranty are also
23excluded, but the warranty shall expire in any event on
24midnight of the 30th calendar day after delivery. In
25calculating distance, the miles driven to or by the seller to
26obtain or in connection with the repair, servicing, or testing

 

 

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1of a used motor vehicle that fails to conform with the implied
2warranty of merchantability are excluded. An implied warranty
3of merchantability does not extend to damage that occurs after
4the sale of the used motor vehicle that results from:
5        (1) off-road use;
6        (2) racing;
7        (3) towing;
8        (4) abuse;
9        (5) misuse;
10        (6) neglect;
11        (7) failure to perform regular maintenance; and
12        (8) failure to maintain adequate oil, coolant, and
13    other required fluids or lubricants.
14    (f) If the implied warranty of merchantability described in
15this Section is breached, the consumer shall give reasonable
16notice to the seller no later than 2 business days after the
17end of the statutory warranty period. Before the consumer
18exercises another remedy pursuant to Article 2 of the Uniform
19Commercial Code, the seller shall have a reasonable opportunity
20to repair the used motor vehicle. The consumer shall pay
21one-half of the cost of the first 2 repairs necessary to bring
22the used motor vehicle into compliance with the warranty. The
23payments by the consumer are limited to a maximum payment of
24$100 for each repair; however, the consumer shall only be
25responsible for a maximum payment of $100 if the consumer
26brings in the vehicle for a second repair for the same defect.

 

 

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1Reasonable notice as defined in this Section shall include, but
2not be limited to:
3        (1) text, provided the seller has provided the consumer
4    with a cell phone number;
5        (2) phone call or message to the seller's business
6    phone number provided on the seller's bill of sale for the
7    purchase of the motor vehicle;
8        (3) in writing to the seller's address provided on the
9    seller's bill of sale for the purchase of the motor
10    vehicle;
11        (4) in person at the seller's address provided on the
12    seller's bill of sale for the purchase of the motor
13    vehicle.
14    (g) The maximum liability of a seller for repairs pursuant
15to this Section is limited to the purchase price paid for the
16used motor vehicle, to be refunded to the consumer or lender,
17as applicable, in exchange for return of the vehicle.
18    (h) An agreement for the sale of a used motor vehicle
19subject to this Section is voidable at the option of the
20consumer, unless it contains on its face or in a separate
21document the following conspicuous statement printed in
22boldface 10-point or larger type set off from the body of the
23agreement:
24    "Illinois law requires that this vehicle will be free of a
25defect in a power train component for 15 days or 500 miles
26after delivery, whichever is earlier, except with regard to

 

 

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1particular defects disclosed on the first page of this
2agreement. "Power train component" means the engine block,
3head, all internal engine parts, oil pan and gaskets, water
4pump, intake manifold, transmission, and all internal
5transmission parts, torque converter, drive shaft, universal
6joints, rear axle and all rear axle internal parts, and rear
7wheel bearings. You (the consumer) will have to pay up to $100
8for each of the first 2 repairs if the warranty is violated.".
9    (i) The inclusion in the agreement of the statement
10prescribed in subsection (h) of this Section does not create an
11express warranty.
12    (j) A consumer of a used motor vehicle may waive the
13implied warranty of merchantability only for a particular
14defect in the vehicle including, but not limited to, a rebuilt
15or flood-branded title and only if all of the following
16conditions are satisfied:
17        (1) the seller subject to this Section fully and
18    accurately discloses to the consumer that because of
19    circumstances unusual to the business, the used motor
20    vehicle has a particular defect;
21        (2) the consumer agrees to buy the used motor vehicle
22    after disclosure of the defect; and
23        (3) before the sale, the consumer indicates agreement
24    to the waiver by signing and dating the following
25    conspicuous statement that is printed on the first page of
26    the sales agreement or on a separate document in boldface

 

 

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1    10-point or larger type and that is written in the language
2    in which the presentation was made:
3        "Attention consumer: sign here only if the seller has
4    told you that this vehicle has the following problem or
5    problems and you agree to buy the vehicle on those terms:
6    1. ......................................................
7    2. ..................................................
8    3. ...................................................".
9    (k) It shall be an affirmative defense to any claim under
10this Section that:
11        (1) an alleged nonconformity does not substantially
12    impair the use and market value of the motor vehicle;
13        (2) a nonconformity is the result of abuse, neglect, or
14    unauthorized modifications or alterations of the motor
15    vehicle;
16        (3) a claim by a consumer was not filed in good faith;
17    or
18        (4) any other affirmative defense allowed by law.
19    (l) Other than the 15-day, 500-mile implied warranty of
20merchantability identified herein, a seller subject to this
21Section is not required to provide any further express or
22implied warranties to a purchasing consumer unless:
23        (1) the seller is required by federal or State law to
24    provide a further express or implied warranty; or
25        (2) the seller fails to fully inform and disclose to
26    the consumer that the vehicle is being sold without any

 

 

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1    further express or implied warranties, other than the 15
2    day, 500 mile implied warranty of merchantability
3    identified in this Section.
4    (m) This Section does not apply to the sale of antique
5vehicles, as defined in the Illinois Vehicle Code, or to
6collector motor vehicles.
7    Any person who violates this Section commits an unlawful
8practice within the meaning of this Act.
9(Source: P.A. 99-768, eff. 7-1-17.)
 
10    Section 95. No acceleration or delay. Where this Act makes
11changes in a statute that is represented in this Act by text
12that is not yet or no longer in effect (for example, a Section
13represented by multiple versions), the use of that text does
14not accelerate or delay the taking effect of (i) the changes
15made by this Act or (ii) provisions derived from any other
16Public Act.
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.".