Full Text of HB3746 99th General Assembly
HB3746ham001 99TH GENERAL ASSEMBLY | Rep. Rita Mayfield Filed: 4/20/2015
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| 1 | | AMENDMENT TO HOUSE BILL 3746
| 2 | | AMENDMENT NO. ______. Amend House Bill 3746 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Consumer Fraud and Deceptive Business | 5 | | Practices Act is amended by changing Section 2L as follows:
| 6 | | (815 ILCS 505/2L) (from Ch. 121 1/2, par. 262L)
| 7 | | Sec. 2L. Used motor vehicles; modification or disclaimer of | 8 | | implied warranty of merchantability limited. | 9 | | (a) Any motor vehicle sale conducted by a buy here/pay here | 10 | | motor vehicle dealer licensed under Section 5-102 of the | 11 | | Illinois Vehicle Code may not exclude, modify, or disclaim the | 12 | | implied warranty of merchantability prescribed in Section | 13 | | 2-314 of the Uniform Commercial Code or limit the remedies for | 14 | | a breach of the warranty before midnight of the 15th calendar | 15 | | day after delivery of a used motor vehicle or until a used | 16 | | motor vehicle is driven 500 miles after delivery, whichever is |
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| 1 | | earlier. For the purpose of this Section 2L, the term "buy | 2 | | here/pay here motor vehicle dealer" means a motor vehicle | 3 | | dealer licensed under Section 5-102 of the Illinois Vehicle | 4 | | Code who, at any time within the previous 12 months, has | 5 | | conducted at least 5 retail installment transactions under the | 6 | | Motor Vehicle Retail Installment Sales Act where the motor | 7 | | vehicle dealer did not assign the retail installment contract | 8 | | to an unaffiliated third party finance source. In calculating | 9 | | time under this Section, a day on which the warranty is | 10 | | breached and all subsequent days in which the used motor | 11 | | vehicle fails to conform with the implied warranty of | 12 | | merchantability are excluded. In calculating distance under | 13 | | this Section, the miles driven to obtain or in connection with | 14 | | the repair, servicing, or testing of a used motor vehicle that | 15 | | fails to conform with the implied warranty of merchantability | 16 | | are excluded. An attempt to exclude, modify, or disclaim the | 17 | | implied warranty of merchantability or to limit the remedies | 18 | | for a breach of the warranty in violation of this Section | 19 | | renders a purchase agreement voidable at the option of the | 20 | | purchaser. | 21 | | (b) An implied warranty of merchantability is met if a used | 22 | | motor vehicle functions substantially free of a defect that | 23 | | significantly limits the use of the used motor vehicle for the | 24 | | ordinary purpose of transportation on any public highway. The | 25 | | implied warranty of merchantability expires at midnight of the | 26 | | 15th calendar day after delivery of a used motor vehicle or |
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| 1 | | until a used motor vehicle is driven 500 miles after delivery, | 2 | | whichever is earlier. In calculating time, a day on which the | 3 | | implied warranty of merchantability is breached is excluded and | 4 | | all subsequent days in which the used motor vehicle fails to | 5 | | conform with the warranty are also excluded. In calculating | 6 | | distance, the miles driven to obtain or in connection with the | 7 | | repair, servicing, or testing of a used motor vehicle that | 8 | | fails to conform with the implied warranty of merchantability | 9 | | are excluded. | 10 | | (c) An implied warranty of merchantability does not extend | 11 | | to damage that occurs after the sale of the used motor vehicle | 12 | | that results from: | 13 | | (1) off-road use; | 14 | | (2) racing; | 15 | | (3) towing; | 16 | | (4) abuse; | 17 | | (5) misuse; | 18 | | (6) neglect; | 19 | | (7) failure to perform regular maintenance; and | 20 | | (8) failure to maintain adequate oil, coolant, and | 21 | | other required fluids or lubricants. | 22 | | (d) If the implied warranty of merchantability described in | 23 | | this Section is breached, the consumer shall give reasonable | 24 | | notice to the seller within 15 days after the date of the | 25 | | breach. Before the consumer exercises another remedy pursuant | 26 | | to Article 2 of the Uniform Commercial Code, the seller shall |
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| 1 | | have a reasonable opportunity to repair the used motor vehicle. | 2 | | The consumer shall pay one-half of the cost of the first 2 | 3 | | repairs necessary to bring the used motor vehicle into | 4 | | compliance with the warranty. The payments by the consumer are | 5 | | limited to a maximum payment of $25 for each repair. | 6 | | (e) The maximum liability of a seller pursuant to this | 7 | | Section is limited to the purchase price paid for the used | 8 | | motor vehicle, to be refunded to the consumer or lender, as | 9 | | applicable, in exchange for return of the vehicle. | 10 | | (f) An agreement for the sale of a used motor vehicle by a | 11 | | used motor vehicle dealer is voidable at the option of the | 12 | | consumer unless it contains on its face the following | 13 | | conspicuous statement printed in boldface, 10-point or larger | 14 | | type set off from the body of the agreement: | 15 | | "Illinois law requires that this vehicle will be fit for | 16 | | the ordinary purposes for which the vehicle is used for 15 days | 17 | | or 500 miles after delivery, whichever is earlier, except with | 18 | | regard to particular defects disclosed on the first page of | 19 | | this agreement. You (the consumer) will have to pay up to $25 | 20 | | for each of the first 2 repairs if the warranty is violated.". | 21 | | (g) The inclusion in the agreement of the statement | 22 | | prescribed in subsection (f) of this Section does not create an | 23 | | express warranty. | 24 | | (h) A consumer of a used motor vehicle may waive the | 25 | | implied warranty of merchantability only for a particular | 26 | | defect in the vehicle and only if all of the following |
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| 1 | | conditions are satisfied: | 2 | | (1) the motor vehicle dealer subject to this Section | 3 | | fully and accurately discloses to the consumer that because | 4 | | of circumstances unusual to the business of the used motor | 5 | | vehicle dealer, the used motor vehicle has a particular | 6 | | 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 dealer has told | 16 | | you that this vehicle has the following problem or problems and | 17 | | you agree to buy the vehicle on those terms: | 18 | | 1......................................................... | 19 | | 2......................................................... | 20 | | 3.........................................................". | 21 | | (i) A used motor vehicle dealer subject to this Section has | 22 | | the burden to prove by a preponderance of the evidence that the | 23 | | dealer complied with subsection (h) of this Section. | 24 | | (j) A consumer or seller that is aggrieved by a transaction | 25 | | pursuant to this Section and that seeks a legal remedy shall | 26 | | pursue an appropriate remedy prescribed in Article 2 of the |
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| 1 | | Uniform Commercial Code and shall comply with the requirements | 2 | | prescribed in that Article. | 3 | | (k) It shall be an affirmative defense to any claim under | 4 | | this Section that: | 5 | | (1) an alleged nonconformity does not substantially | 6 | | impair the use and market value of the motor vehicle; | 7 | | (2) a nonconformity is the result of abuse, neglect, or | 8 | | unauthorized modifications or alterations of the motor | 9 | | vehicle; | 10 | | (3) a claim by a consumer was not filed in good faith; | 11 | | or | 12 | | (4) any other affirmative defense allowed by law. | 13 | | (l) Other than the 15 day, 500 mile implied warranty of | 14 | | merchantability identified herein, a motor vehicle dealer is | 15 | | not required to provide any further express or implied | 16 | | warranties to a purchasing consumer unless: | 17 | | (1) the motor vehicle dealer is required by federal or | 18 | | State law to provide a further express of implied warranty, | 19 | | or | 20 | | (2) the motor vehicle dealer fully informs and | 21 | | discloses to the consumer that the vehicle is being sold | 22 | | without any further express or implied warranties, other | 23 | | than the 15 day mile implied warranty of merchantability | 24 | | identified in this Section. | 25 | | (m) This Section does not apply to the sale of antique | 26 | | vehicles, as defined in the Illinois Vehicle Code, or to |
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| 1 | | collector motor vehicles. | 2 | | Any retail sale of a motor vehicle made after January 1,
1968 | 3 | | to a consumer by a new motor vehicle dealer or used motor | 4 | | vehicle
dealer within the meaning of Chapter 5 of the Illinois | 5 | | Vehicle Code is
made subject to this Section.
| 6 | | (a) The dealer is liable to the purchasing consumer for the
| 7 | | following share of the cost of the repair of Power Train | 8 | | components for
a period of 30 days from date of delivery, | 9 | | unless the repairs have
become necessary by abuse, negligence, | 10 | | or collision. The burden of
establishing that a claim for | 11 | | repairs is not within this Section shall
be on the selling | 12 | | dealer. The dealer's share of such repair costs is:
| 13 | | (1) in the case of a motor vehicle which is not more than 2 | 14 | | years
old, 50%;
| 15 | | (2) in the case of a motor vehicle which is 2 or more, but | 16 | | less than
3 years old, 25%;
| 17 | | (3) in the case of a motor vehicle which is 3 or more, but | 18 | | less than
4 years old, 10%; and
| 19 | | (4) in the case of a motor vehicle which is 4 or more years | 20 | | old,
none.
| 21 | | (b) Notwithstanding the foregoing, such a dealer and a | 22 | | purchasing
consumer may negotiate a sale and purchase that is | 23 | | not subject to this
Section if there is stamped on any purchase | 24 | | order, contract, agreement,
or other instrument to be signed by | 25 | | the consumer as a part of that
transaction, in at least | 26 | | 10-point bold type immediately above the
signature line, the |
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| 1 | | following:
| 2 | | "THIS VEHICLE IS SOLD AS IS WITH NO WARRANTY
| 3 | | AS TO MECHANICAL CONDITION"
| 4 | | (c) As used in this Section, "Power Train components" means | 5 | | the
engine block, head, all internal engine parts, oil pan and | 6 | | gaskets,
water pump, intake manifold, transmission, and all | 7 | | internal transmission
parts, torque converter, drive shaft, | 8 | | universal joints, rear axle and
all rear axle internal parts, | 9 | | and rear wheel bearings.
| 10 | | (d) The repair liability means that the dealer will make | 11 | | necessary
Power Train component repairs in his shop, or in the | 12 | | shop of his service
affiliate, on the basis of his regular list | 13 | | price charge for parts and
labor, where the flat rate list | 14 | | price does not exceed 50% of the selling
price of the vehicle | 15 | | at the time repairs are requested.
| 16 | | (e) The age of the vehicle shall be measured according to | 17 | | the
manufacturer's model year designation as shown on the | 18 | | Certificate of
Title or Registration Certificate. Vehicles | 19 | | shall be designated as
current year models, one year old, 2 | 20 | | year old, and so forth according to
the time that has elapsed | 21 | | since January 1 of the appropriate model year
so designated.
| 22 | | (f) This Section does not preclude the issuance of a | 23 | | warranty or
guarantee by a motor vehicle dealer or motor car | 24 | | manufacturer that meets
or exceeds the basic provisions of | 25 | | paragraph (a).
| 26 | | (g) After the effective date of this amendatory Act of |
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| 1 | | 1989,
executives' and officials' cars when so advertised shall | 2 | | have been used
exclusively by executives of the parent motor | 3 | | car manufacturer's personnel
or by an executive of an | 4 | | authorized dealer in the same make of car. These
cars, so | 5 | | advertised, shall not have been sold to a member of the public
| 6 | | prior to the appearance of the advertisement.
| 7 | | Any person who violates this Section commits an unlawful | 8 | | practice
within the meaning of this Act.
| 9 | | (Source: P.A. 86-351; 87-1140.)".
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