Illinois General Assembly - Full Text of HB3746
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Full Text of HB3746  99th General Assembly


Rep. Rita Mayfield

Filed: 4/20/2015





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2    AMENDMENT NO. ______. Amend House Bill 3746 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    Sec. 2L. Used motor vehicles; modification or disclaimer of
8implied warranty of merchantability limited.
9    (a) Any retail sale of a motor vehicle made after the
10effective date of this amendatory Act of the 99th General
11Assembly January 1, 1968 to a consumer by a new motor vehicle
12dealer or used motor vehicle dealer within the meaning of
13Chapter 5 of the Illinois Vehicle Code is made subject to this
15    (b) Any motor vehicle sale conducted by a motor vehicle
16dealer licensed under Section 5-102 of the Illinois Vehicle



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1Code or by an auction company at an auction that is open to the
2general public may not exclude, modify, or disclaim the implied
3warranty of merchantability prescribed in Section 2-314 of the
4Uniform Commercial Code or limit the remedies for a breach of
5the warranty before midnight of the 15th calendar day after
6delivery of a used motor vehicle or until a used motor vehicle
7is driven 500 miles after delivery, whichever is earlier. In
8calculating time under this Section, a day on which the
9warranty is breached and all subsequent days in which the used
10motor vehicle fails to conform with the implied warranty of
11merchantability are excluded. In calculating distance under
12this Section, the miles driven to obtain or in connection with
13the repair, servicing, or testing of a used motor vehicle that
14fails to conform with the implied warranty of merchantability
15are excluded. An attempt to exclude, modify, or disclaim the
16implied warranty of merchantability or to limit the remedies
17for a breach of the warranty in violation of this Section
18renders a purchase agreement voidable at the option of the
20    (c) An implied warranty of merchantability is met if a used
21motor vehicle functions substantially free of a defect that
22significantly limits the use of the used motor vehicle for the
23ordinary purpose of transportation on any public highway. The
24implied warranty of merchantability expires at midnight of the
2515th calendar day after delivery of a used motor vehicle or
26until a used motor vehicle is driven 500 miles after delivery,



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1whichever is earlier. In calculating time, a day on which the
2implied warranty of merchantability is breached is excluded and
3all subsequent days in which the used motor vehicle fails to
4conform with the warranty are also excluded. In calculating
5distance, the miles driven to obtain or in connection with the
6repair, servicing, or testing of a used motor vehicle that
7fails to conform with the implied warranty of merchantability
8are excluded.
9    (d) An implied warranty of merchantability does not extend
10to damage that occurs after the sale of the used motor vehicle
11that results from:
12        (1) off-road use;
13        (2) racing;
14        (3) towing;
15        (4) abuse;
16        (5) misuse;
17        (6) neglect;
18        (7) failure to perform regular maintenance; and
19        (8) failure to maintain adequate oil, coolant, and
20    other required fluids or lubricants.
21    (e) If the implied warranty of merchantability described in
22this Section is breached, the consumer shall give reasonable
23notice to the seller within 15 days after the date of the
24breach. Before the consumer exercises another remedy pursuant
25to Article 2 of the Uniform Commercial Code, the seller shall
26have a reasonable opportunity to repair the used motor vehicle.



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1The consumer shall pay one-half of the cost of the first 2
2repairs necessary to bring the used motor vehicle into
3compliance with the warranty. The payments by the consumer are
4limited to a maximum payment of $25 for each repair.
5    (f) The maximum liability of a seller for repairs pursuant
6to this Section is limited to the purchase price paid for the
7used motor vehicle, to be refunded to the consumer or lender,
8as applicable, in exchange for return of the vehicle.
9    (g) An agreement for the sale of a used motor vehicle by a
10used motor vehicle dealer subject to this Section is voidable
11at the option of the consumer unless it contains on its face
12the following conspicuous statement printed in boldface,
1310-point or larger type set off from the body of the agreement:
14    "Illinois law requires that this vehicle will be fit for
15the ordinary purposes for which the vehicle is used for 15 days
16or 500 miles after delivery, whichever is earlier, except with
17regard to particular defects disclosed on the first page of
18this agreement. You (the consumer) will have to pay up to $25
19for each of the first 2 repairs if the warranty is violated.".
20    (h) The inclusion in the agreement of the statement
21prescribed in subsection (g) of this Section does not create an
22express warranty.
23    (i) A consumer of a used motor vehicle may waive the
24implied warranty of merchantability only for a particular
25defect in the vehicle and only if all of the following
26conditions are satisfied:



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1        (1) the motor vehicle dealer subject to this Section
2    fully and accurately discloses to the consumer that because
3    of circumstances unusual to the business of the used motor
4    vehicle dealer, the used motor vehicle has a particular
5    defect;
6        (2) the consumer agrees to buy the used motor vehicle
7    after disclosure of the defect; and
8        (3) before the sale, the consumer indicates agreement
9    to the waiver by signing and dating the following
10    conspicuous statement that is printed on the first page of
11    the sales agreement or on a separate document in boldface
12    10-point or larger type and that is written in the language
13    in which the presentation was made:
14    "Attention consumer: sign here only if the dealer has told
15you that this vehicle has the following problem or problems and
16you agree to buy the vehicle on those terms:
20    (j) A used motor vehicle dealer subject to this Section has
21the burden to prove by a preponderance of the evidence that the
22dealer complied with subsection (i) of this Section.
23    (k) A consumer or seller that is aggrieved by a transaction
24pursuant to this Section and that seeks a legal remedy shall
25pursue an appropriate remedy prescribed in Article 2 of the
26Uniform Commercial Code and shall comply with the requirements



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1prescribed in that Article.
2    (l) It shall be an affirmative defense to any claim under
3this Section that:
4        (1) an alleged nonconformity does not substantially
5    impair the use and market value of the motor vehicle;
6        (2) a nonconformity is the result of abuse, neglect, or
7    unauthorized modifications or alterations of the motor
8    vehicle;
9        (3) a claim by a consumer was not filed in good faith;
10    or
11        (4) any other affirmative defense allowed by law.
12    (m) Other than the 15 day, 500 mile implied warranty of
13merchantability identified herein, a motor vehicle dealer is
14not required to provide any further express or implied
15warranties to a purchasing consumer unless:
16        (1) the motor vehicle dealer is required by federal or
17    State law to provide a further express of implied warranty,
18    or
19        (2) the motor vehicle dealer fully informs and
20    discloses to the consumer that the vehicle is being sold
21    without any further express or implied warranties, other
22    than the 15 day mile implied warranty of merchantability
23    identified in this Section.
24    (n) This Section does not apply to the sale of antique
25vehicles, as defined in the Illinois Vehicle Code, or to
26collector motor vehicles.



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1    (a) The dealer is liable to the purchasing consumer for the
2following share of the cost of the repair of Power Train
3components for a period of 30 days from date of delivery,
4unless the repairs have become necessary by abuse, negligence,
5or collision. The burden of establishing that a claim for
6repairs is not within this Section shall be on the selling
7dealer. The dealer's share of such repair costs is:
8    (1) in the case of a motor vehicle which is not more than 2
9years old, 50%;
10    (2) in the case of a motor vehicle which is 2 or more, but
11less than 3 years old, 25%;
12    (3) in the case of a motor vehicle which is 3 or more, but
13less than 4 years old, 10%; and
14    (4) in the case of a motor vehicle which is 4 or more years
15old, none.
16    (b) Notwithstanding the foregoing, such a dealer and a
17purchasing consumer may negotiate a sale and purchase that is
18not subject to this Section if there is stamped on any purchase
19order, contract, agreement, or other instrument to be signed by
20the consumer as a part of that transaction, in at least
2110-point bold type immediately above the signature line, the
25    (c) As used in this Section, "Power Train components" means
26the engine block, head, all internal engine parts, oil pan and



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1gaskets, water pump, intake manifold, transmission, and all
2internal transmission parts, torque converter, drive shaft,
3universal joints, rear axle and all rear axle internal parts,
4and rear wheel bearings.
5    (d) The repair liability means that the dealer will make
6necessary Power Train component repairs in his shop, or in the
7shop of his service affiliate, on the basis of his regular list
8price charge for parts and labor, where the flat rate list
9price does not exceed 50% of the selling price of the vehicle
10at the time repairs are requested.
11    (e) The age of the vehicle shall be measured according to
12the manufacturer's model year designation as shown on the
13Certificate of Title or Registration Certificate. Vehicles
14shall be designated as current year models, one year old, 2
15year old, and so forth according to the time that has elapsed
16since January 1 of the appropriate model year so designated.
17    (f) This Section does not preclude the issuance of a
18warranty or guarantee by a motor vehicle dealer or motor car
19manufacturer that meets or exceeds the basic provisions of
20paragraph (a).
21    (g) After the effective date of this amendatory Act of
221989, executives' and officials' cars when so advertised shall
23have been used exclusively by executives of the parent motor
24car manufacturer's personnel or by an executive of an
25authorized dealer in the same make of car. These cars, so
26advertised, shall not have been sold to a member of the public



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1prior to the appearance of the advertisement.
2    Any person who violates this Section commits an unlawful
3practice within the meaning of this Act.
4(Source: P.A. 86-351; 87-1140.)".