|
| | HB4377 Engrossed | | LRB099 15636 KTG 39929 b |
|
|
1 | | AN ACT concerning business.
|
2 | | Be it enacted by the People of the State of Illinois,
|
3 | | represented in the General Assembly:
|
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 retail sale of a used motor vehicle made after the |
10 | | effective date of this amendatory Act of the 99th General |
11 | | Assembly January 1,
1968 to a consumer by a licensed vehicle |
12 | | dealer new motor vehicle dealer or used motor vehicle
dealer |
13 | | within the meaning of Chapter 5 of the Illinois Vehicle Code or |
14 | | by an auction company at an auction that is open to the general |
15 | | public is
made subject to this Section.
|
16 | | (b) Any sale of a used motor vehicle conducted by a dealer |
17 | | licensed under the Illinois Vehicle Code or by an auction |
18 | | company at an auction that is open to the general public may |
19 | | not exclude, modify, or disclaim the implied warranty of |
20 | | merchantability prescribed in Section 2-314 of the Uniform |
21 | | Commercial Code or limit the remedies for a breach of the |
22 | | warranty before midnight of the 15th calendar day after |
23 | | delivery of a used motor vehicle or until a used motor vehicle |
|
| | HB4377 Engrossed | - 2 - | LRB099 15636 KTG 39929 b |
|
|
1 | | is driven 500 miles after delivery, whichever is earlier. In |
2 | | calculating time under this Section, a day on which the |
3 | | warranty is breached and all subsequent days in which the used |
4 | | motor vehicle fails to conform with the implied warranty of |
5 | | merchantability are excluded. In calculating distance under |
6 | | this Section, the miles driven to obtain or in connection with |
7 | | the repair, servicing, or testing of a used motor vehicle that |
8 | | fails to conform with the implied warranty of merchantability |
9 | | are excluded. An attempt to exclude, modify, or disclaim the |
10 | | implied warranty of merchantability or to limit the remedies |
11 | | for a breach of the warranty in violation of this Section |
12 | | renders a purchase agreement voidable at the option of the |
13 | | purchaser. |
14 | | (c) An implied warranty of merchantability is met if a used |
15 | | motor vehicle functions free of a defect in a Power Train |
16 | | component. As used in this Section, "Power Train component" |
17 | | means the engine block, head, all internal engine parts, oil |
18 | | pan and gaskets, water pump, intake manifold, transmission, and |
19 | | all internal transmission parts, torque converter, drive |
20 | | shaft,
universal joints, rear axle and all rear axle internal |
21 | | parts, and rear wheel bearings. |
22 | | The implied warranty of merchantability expires at |
23 | | midnight of the 15th calendar day after delivery of a used |
24 | | motor vehicle or when a used motor vehicle is driven 500 miles |
25 | | after delivery, whichever is earlier. In calculating time, a |
26 | | day on which the implied warranty of merchantability is |
|
| | HB4377 Engrossed | - 3 - | LRB099 15636 KTG 39929 b |
|
|
1 | | breached is excluded and all subsequent days in which the used |
2 | | motor vehicle fails to conform with the warranty are also |
3 | | excluded. In calculating distance, the miles driven to obtain |
4 | | or in connection with the repair, servicing, or testing of a |
5 | | used motor vehicle that fails to conform with the implied |
6 | | warranty of merchantability are excluded. |
7 | | (d) An implied warranty of merchantability does not extend |
8 | | to damage that occurs after the sale of the used motor vehicle |
9 | | that results from: |
10 | | (1) off-road use; |
11 | | (2) racing; |
12 | | (3) towing; |
13 | | (4) abuse; |
14 | | (5) misuse; |
15 | | (6) neglect; |
16 | | (7) failure to perform regular maintenance; and |
17 | | (8) failure to maintain adequate oil, coolant, and |
18 | | other required fluids or lubricants. |
19 | | (e) If the implied warranty of merchantability described in |
20 | | this Section is breached, the consumer shall give reasonable |
21 | | notice to the seller no later than 5 business days after the |
22 | | end of the statutory warranty period. Before the consumer |
23 | | exercises another remedy pursuant to Article 2 of the Uniform |
24 | | Commercial Code, the seller shall have a reasonable opportunity |
25 | | to repair the used motor vehicle. The consumer shall pay |
26 | | one-half of the cost of the first 2 repairs necessary to bring |
|
| | HB4377 Engrossed | - 4 - | LRB099 15636 KTG 39929 b |
|
|
1 | | the used motor vehicle into compliance with the warranty. The |
2 | | payments by the consumer are limited to a maximum payment of |
3 | | $25 for each repair. |
4 | | (f) The maximum liability of a seller for repairs pursuant |
5 | | to this Section is limited to the purchase price paid for the |
6 | | used motor vehicle, to be refunded to the consumer or lender, |
7 | | as applicable, in exchange for return of the vehicle. |
8 | | (g) An agreement for the sale of a used motor vehicle by a |
9 | | motor vehicle dealer subject to this Section is voidable at the |
10 | | option of the consumer, unless it contains on its face the |
11 | | following conspicuous statement printed in boldface 10-point |
12 | | or larger type set off from the body of the agreement: |
13 | | "Illinois law requires that this vehicle will be free of a |
14 | | defect in a Power Train component for 15 days or 500 miles |
15 | | after delivery, whichever is earlier, except with regard to |
16 | | particular defects disclosed on the first page of this |
17 | | agreement. "Power Train component" means the engine block, |
18 | | head, all internal engine parts, oil pan and gaskets, water |
19 | | pump, intake manifold, transmission, and all internal |
20 | | transmission parts, torque converter, drive shaft, universal |
21 | | joints, rear axle and all rear axle internal parts, and rear |
22 | | wheel bearings. You (the consumer) will have to pay up to $25 |
23 | | for each of the first 2 repairs if the warranty is violated.". |
24 | | (h) The inclusion in the agreement of the statement |
25 | | prescribed in subsection (g) of this Section does not create an |
26 | | express warranty. |
|
| | HB4377 Engrossed | - 5 - | LRB099 15636 KTG 39929 b |
|
|
1 | | (i) A consumer of a used motor vehicle may waive the |
2 | | implied warranty of merchantability only for a particular |
3 | | defect in the vehicle and only if all of the following |
4 | | conditions are satisfied: |
5 | | (1) the motor vehicle dealer subject to this Section |
6 | | fully and accurately discloses to the consumer that because |
7 | | of circumstances unusual to the business of the used motor |
8 | | vehicle dealer, the used motor vehicle has a particular |
9 | | defect; |
10 | | (2) the consumer agrees to buy the used motor vehicle |
11 | | after disclosure of the defect; and |
12 | | (3) before the sale, the consumer indicates agreement |
13 | | to the waiver by signing and dating the following |
14 | | conspicuous statement that is printed on the first page of |
15 | | the sales agreement or on a separate document in boldface |
16 | | 10-point or larger type and that is written in the language |
17 | | in which the presentation was made: |
18 | | "Attention consumer: sign here only if the dealer has told |
19 | | you that this vehicle has the following problem or problems and |
20 | | you agree to buy the vehicle on those terms: |
21 | | 1......................................................... |
22 | | 2......................................................... |
23 | | 3.........................................................". |
24 | | (j) A motor vehicle dealer subject to this Section has the |
25 | | burden to prove by a preponderance of the evidence that the |
26 | | dealer complied with this Section. |
|
| | HB4377 Engrossed | - 6 - | LRB099 15636 KTG 39929 b |
|
|
1 | | (k) It shall be an affirmative defense to any claim under |
2 | | this Section that: |
3 | | (1) an alleged nonconformity does not substantially |
4 | | impair the use and market value of the motor vehicle; |
5 | | (2) a nonconformity is the result of abuse, neglect, or |
6 | | unauthorized modifications or alterations of the motor |
7 | | vehicle; |
8 | | (3) a claim by a consumer was not filed in good faith; |
9 | | or |
10 | | (4) any other affirmative defense allowed by law. |
11 | | (l) Other than the 15 day, 500 mile implied warranty of |
12 | | merchantability identified herein, a motor vehicle dealer is |
13 | | not required to provide any further express or implied |
14 | | warranties to a purchasing consumer unless: |
15 | | (1) the motor vehicle dealer is required by federal or |
16 | | State law to provide a further express or implied warranty; |
17 | | or |
18 | | (2) the motor vehicle dealer fails to fully inform and |
19 | | disclose to the consumer that the vehicle is being sold |
20 | | without any further express or implied warranties, other |
21 | | than the 15 day, 500 mile implied warranty of |
22 | | merchantability identified in this Section. |
23 | | (m) This Section does not apply to the sale of antique |
24 | | vehicles, as defined in the Illinois Vehicle Code, or to |
25 | | collector motor vehicles. |
26 | | (a) The dealer is liable to the purchasing consumer for the
|
|
| | HB4377 Engrossed | - 7 - | LRB099 15636 KTG 39929 b |
|
|
1 | | following share of the cost of the repair of Power Train |
2 | | components for
a period of 30 days from date of delivery, |
3 | | unless the repairs have
become necessary by abuse, negligence, |
4 | | or collision. The burden of
establishing that a claim for |
5 | | repairs is not within this Section shall
be on the selling |
6 | | dealer. The dealer's share of such repair costs is:
|
7 | | (1) in the case of a motor vehicle which is not more than 2 |
8 | | years
old, 50%;
|
9 | | (2) in the case of a motor vehicle which is 2 or more, but |
10 | | less than
3 years old, 25%;
|
11 | | (3) in the case of a motor vehicle which is 3 or more, but |
12 | | less than
4 years old, 10%; and
|
13 | | (4) in the case of a motor vehicle which is 4 or more years |
14 | | old,
none.
|
15 | | (b) Notwithstanding the foregoing, such a dealer and a |
16 | | purchasing
consumer may negotiate a sale and purchase that is |
17 | | not subject to this
Section if there is stamped on any purchase |
18 | | order, contract, agreement,
or other instrument to be signed by |
19 | | the consumer as a part of that
transaction, in at least |
20 | | 10-point bold type immediately above the
signature line, the |
21 | | following:
|
22 | | "THIS VEHICLE IS SOLD AS IS WITH NO WARRANTY
|
23 | | AS TO MECHANICAL CONDITION"
|
24 | | (c) As used in this Section, "Power Train components" means |
25 | | the
engine block, head, all internal engine parts, oil pan and |
26 | | gaskets,
water pump, intake manifold, transmission, and all |
|
| | HB4377 Engrossed | - 8 - | LRB099 15636 KTG 39929 b |
|
|
1 | | internal transmission
parts, torque converter, drive shaft, |
2 | | universal joints, rear axle and
all rear axle internal parts, |
3 | | and rear wheel bearings.
|
4 | | (d) The repair liability means that the dealer will make |
5 | | necessary
Power Train component repairs in his shop, or in the |
6 | | shop of his service
affiliate, on the basis of his regular list |
7 | | price charge for parts and
labor, where the flat rate list |
8 | | price does not exceed 50% of the selling
price of the vehicle |
9 | | at the time repairs are requested.
|
10 | | (e) The age of the vehicle shall be measured according to |
11 | | the
manufacturer's model year designation as shown on the |
12 | | Certificate of
Title or Registration Certificate. Vehicles |
13 | | shall be designated as
current year models, one year old, 2 |
14 | | year old, and so forth according to
the time that has elapsed |
15 | | since January 1 of the appropriate model year
so designated.
|
16 | | (f) This Section does not preclude the issuance of a |
17 | | warranty or
guarantee by a motor vehicle dealer or motor car |
18 | | manufacturer that meets
or exceeds the basic provisions of |
19 | | paragraph (a).
|
20 | | (g) After the effective date of this amendatory Act of |
21 | | 1989,
executives' and officials' cars when so advertised shall |
22 | | have been used
exclusively by executives of the parent motor |
23 | | car manufacturer's personnel
or by an executive of an |
24 | | authorized dealer in the same make of car. These
cars, so |
25 | | advertised, shall not have been sold to a member of the public
|
26 | | prior to the appearance of the advertisement.
|