97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB1202

 

Introduced 02/08/11, by Rep. Michael J. Zalewski

 

SYNOPSIS AS INTRODUCED:
 
815 ILCS 380/Act title
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 380/6  from Ch. 121 1/2, par. 1206
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. Makes the protections that are available to buyers of new vehicles also available to buyers of new motorized wheelchairs, including replacement or return of a new motorized wheelchair that the seller, after a reasonable number of attempts, is unable to conform to any of its applicable express warranties. Provides that lien holders to whom a refund may be paid under the Act include the administrator of the medical assistance program under the Illinois Public Aid Code, the administrator of the federal Medicare program, and a private insurer. Effective immediately.


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A BILL FOR

 

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1    AN ACT concerning business.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The New Vehicle Buyer Protection Act is amended
5by changing the title of the Act and Sections 2, 3, 4, 6, 7, and
68 as follows:
 
7    (815 ILCS 380/Act title)
8An Act regarding automobile and motorized wheelchair
9warranties.
 
10    (815 ILCS 380/2)  (from Ch. 121 1/2, par. 1202)
11    Sec. 2. Definitions. For the purposes of this Act, the
12following words have the meanings ascribed to them in this
13Section.
14    (a) "Consumer" means (i) an individual who purchases or
15leases for a period of at least one year a new vehicle from the
16seller for the purposes of transporting himself and others, as
17well as their personal property, for primarily personal,
18household or family purposes or a fire department, fire
19protection district, or township fire department that
20purchases or leases for a period of at least one year a new
21vehicle from the seller, or (ii) an individual who purchases or
22leases for a period of at least one year a new motorized

 

 

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1wheelchair.
2    (b) "Express warranty" has the same meaning, for the
3purposes of this Act, as it has for the purposes of the Uniform
4Commercial Code.
5    (c) "New vehicle" means a passenger car, as defined in
6Section 1-157 of the Illinois Vehicle Code, a motor vehicle of
7the Second Division having a weight of under 8,000 pounds, as
8defined in Section 1-146 of that Code, a vehicle purchased by a
9fire department, a fire protection district, or a township fire
10department, and a recreational vehicle, except for a camping
11trailer or travel trailer that does not qualify under the
12definition of a used motor vehicle, as set forth in Section
131-216 of that Code.
14    (c-5) "New motorized wheelchair" means a motorized
15wheelchair, as defined in Section 1-148.3 of the Illinois
16Vehicle Code, except for a motorized wheelchair that has been
17sold, bargained, exchanged, given away, or title transferred
18from the person who first acquired it from the manufacturer or
19importer, dealer, or agent of the manufacturer or importer and
20so used as to have become what is commonly known as "second
21hand" within the ordinary meaning of that term.
22    (d) "Nonconformity" refers to a new vehicle's or new
23motorized wheelchair's failure to conform to all express
24warranties applicable to such vehicle or wheelchair, which
25failure substantially impairs the use, market value or safety
26of that vehicle or wheelchair.

 

 

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1    (e) "Seller" means the manufacturer of a new vehicle or new
2motorized wheelchair, that manufacturer's agent or distributor
3or that manufacturer's authorized dealer. "Seller" also means,
4with respect to a new vehicle which is also a modified vehicle,
5as defined in Section 1-144.1 of the Illinois Vehicle Code, as
6now or hereafter amended, the person who modified the vehicle
7and that person's agent or distributor or that person's
8authorized dealer. "Seller" also means, with respect to leased
9new vehicles or leased new motorized wheelchairs, the
10manufacturer, that manufacturer's agent or distributor or that
11manufacturer's dealer, who transfers the right to possession
12and use of goods under a lease.
13    (f) "Statutory warranty period" means (i) the period of one
14year or 12,000 miles, whichever occurs first after the date of
15the delivery of a new vehicle to the consumer who purchased or
16leased it or (ii) the period of the lease or 12,000 miles,
17whichever occurs first after the date of delivery of a new
18motorized wheelchair to the consumer who leased or purchased
19it.
20    (g) "Lease cost" includes deposits, fees, taxes, down
21payments, periodic payments, and any other amount paid to a
22seller by a consumer in connection with the lease of a new
23vehicle or new motorized wheelchair.
24(Source: P.A. 95-802, eff. 1-1-09.)
 
25    (815 ILCS 380/3)  (from Ch. 121 1/2, par. 1203)

 

 

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1    Sec. 3. Failure of vehicle or wheelchair to conform;
2remedies; presumptions.
3    (a) If after a reasonable number of attempts the seller is
4unable to conform the new vehicle or new motorized wheelchair
5to any of its applicable express warranties, the manufacturer
6shall either provide the consumer with a new vehicle or new
7motorized wheelchair of like model line, if available, or
8otherwise a comparable motor vehicle or wheelchair as a
9replacement, or accept the return of the vehicle or wheelchair
10from the consumer and refund to the consumer the full purchase
11price or lease cost of the new vehicle or new motorized
12wheelchair, including all collateral charges, less a
13reasonable allowance for consumer use of the vehicle or
14wheelchair. For purposes of this Section, "collateral charges"
15does not include taxes paid by the purchaser on the initial
16purchase of the new vehicle or new motorized wheelchair. The
17retailer who initially sold the vehicle or wheelchair may file
18a claim for credit for taxes paid pursuant to the terms of
19Sections 6, 6a, 6b, and 6c of the Retailers' Occupation Tax
20Act. Should the vehicle or wheelchair be converted, modified or
21altered in a way other than the manufacturer's original design,
22the party which performed the conversion or modification shall
23be liable under the provisions of this Act, provided the part
24or parts causing the vehicle or wheelchair not to perform
25according to its warranty were altered or modified.
26    (b) A presumption that a reasonable number of attempts have

 

 

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1been undertaken to conform a new vehicle or new motorized
2wheelchair to its express warranties shall arise where, within
3the statutory warranty period,
4        (1) the same nonconformity has been subject to repair
5    by the seller, its agents or authorized dealers during the
6    statutory warranty period, 4 or more times, and such
7    nonconformity continues to exist; or
8        (2) the vehicle or wheelchair has been out of service
9    by reason of repair of nonconformities for a total of 30 or
10    more business days during the statutory warranty period.
11    (c) A reasonable allowance for consumer use of a vehicle or
12wheelchair is that amount directly attributable to the wear and
13tear incurred by the new vehicle or new motorized wheelchair as
14a result of its having been used prior to the first report of a
15nonconformity to the seller, and during any subsequent period
16in which it is not out of service by reason of repair.
17    (d) The fact that a new vehicle's or new motorized
18wheelchair's failure to conform to an express warranty is the
19result of abuse, neglect or unauthorized modifications or
20alterations is an affirmative defense to claims brought under
21this Act.
22    (e) The statutory warranty period of a new vehicle or new
23motorized wheelchair shall be suspended for any period of time
24during which repair services are not available to the consumer
25because of a war, invasion or strike, or a fire, flood or other
26natural disaster.

 

 

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1    (f) Refunds made pursuant to this Act shall be made to the
2consumer, and to the administrator of the medical assistance
3program under Article V of the Illinois Public Aid Code, the
4administrator of the federal Medicare program, a private
5insurer, or other lien holder if any exists, as their
6respective interests appear.
7    (g) For the purposes of this Act, a manufacturer sells a
8new vehicle or new motorized wheelchair to a consumer when he
9provides that consumer with a replacement vehicle or wheelchair
10pursuant to subsection (a).
11    (h) In no event shall the presumption herein provided apply
12against a manufacturer, his agent, distributor or dealer unless
13the manufacturer has received prior direct written
14notification from or on behalf of the consumer, and has an
15opportunity to correct the alleged defect.
16(Source: P.A. 89-359, eff. 8-17-95; 89-375, eff. 8-18-95;
1789-626, eff. 8-9-96.)
 
18    (815 ILCS 380/4)  (from Ch. 121 1/2, par. 1204)
19    Sec. 4. (a) The provisions of subsection (a) of Section 3
20shall not apply unless the consumer has first resorted to an
21informal settlement procedure applicable to disputes to which
22that subsection would apply where
23    (1) The manufacturer of the new vehicle or new motorized
24wheelchair has established such a procedure;
25    (2) The procedure conforms:

 

 

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1    (i) substantially with the provisions of Title 16, Code of
2Federal Regulation, Part 703, as from time to time amended, and
3    (ii) to the requirements of subsection (c); and
4    (3) The consumer has received from the seller adequate
5written notice of the existence of the procedure.
6    Adequate written notice includes but is not limited to the
7incorporation of the informal dispute settlement procedure
8into the terms of the written warranty to which the vehicle or
9wheelchair does not conform.
10    (b) If the consumer is dissatisfied with the decision
11reached in an informal dispute settlement procedure or the
12results of such a decision, he may bring a civil action to
13enforce his rights under subsection (a) of Section 3. The
14decision reached in the informal dispute settlement procedure
15is admissible in such a civil action. The period of limitations
16for a civil action to enforce a consumer's rights or remedies
17under subsection (a) of Section 3 shall be extended for a
18period equal to the number of days the subject matter of the
19civil action was pending in the informal dispute settlement
20procedure.
21    (c) A disclosure of the decision in an informal dispute
22settlement procedure shall include notice to the consumer of
23the provisions of subsection (b).
24(Source: P.A. 85-1350.)
 
25    (815 ILCS 380/6)  (from Ch. 121 1/2, par. 1206)

 

 

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1    Sec. 6. Any action brought under this Act shall be
2commenced within eighteen months following the date of original
3delivery of the motor vehicle or wheelchair to the consumer.
4(Source: P.A. 83-768.)
 
5    (815 ILCS 380/7)  (from Ch. 121 1/2, par. 1207)
6    Sec. 7. The seller who sells a new vehicle or new motorized
7wheelchair to a consumer, shall, upon delivery of that vehicle
8or wheelchair to the consumer, provide the consumer with a
9written statement clearly and conspicuously setting forth in
10full detail the consumer's rights under subsection (a) of
11Section 3, and the presumptions created by subsection (b) of
12that Section.
13(Source: P.A. 85-1350.)
 
14    (815 ILCS 380/8)  (from Ch. 121 1/2, par. 1208)
15    Sec. 8. This Act shall apply to motor vehicles beginning
16with the model year following the effective date of this Act,
17and to motorized wheelchairs with the model year 2012 and
18thereafter.
19(Source: P.A. 83-768.)
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.