Illinois General Assembly - Full Text of HB4377
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Full Text of HB4377  99th General Assembly

HB4377eng 99TH GENERAL ASSEMBLY

  
  
  

 


 
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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 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 used motor vehicle made after the
10effective date of this amendatory Act of the 99th General
11Assembly January 1, 1968 to a consumer by a licensed vehicle
12dealer new motor vehicle dealer or used motor vehicle dealer
13within the meaning of Chapter 5 of the Illinois Vehicle Code or
14by an auction company at an auction that is open to the general
15public is made subject to this Section.
16    (b) Any sale of a used motor vehicle conducted by a dealer
17licensed under the Illinois Vehicle Code or by an auction
18company at an auction that is open to the general public may
19not exclude, modify, or disclaim the implied warranty of
20merchantability prescribed in Section 2-314 of the Uniform
21Commercial Code or limit the remedies for a breach of the
22warranty before midnight of the 15th calendar day after
23delivery of a used motor vehicle or until a used motor vehicle

 

 

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

 

 

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1breached is excluded and all subsequent days in which the used
2motor vehicle fails to conform with the warranty are also
3excluded. In calculating distance, the miles driven to obtain
4or in connection with the repair, servicing, or testing of a
5used motor vehicle that fails to conform with the implied
6warranty of merchantability are excluded.
7    (d) An implied warranty of merchantability does not extend
8to damage that occurs after the sale of the used motor vehicle
9that 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
20this Section is breached, the consumer shall give reasonable
21notice to the seller no later than 5 business days after the
22end of the statutory warranty period. Before the consumer
23exercises another remedy pursuant to Article 2 of the Uniform
24Commercial Code, the seller shall have a reasonable opportunity
25to repair the used motor vehicle. The consumer shall pay
26one-half of the cost of the first 2 repairs necessary to bring

 

 

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1the used motor vehicle into compliance with the warranty. The
2payments 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
5to this Section is limited to the purchase price paid for the
6used motor vehicle, to be refunded to the consumer or lender,
7as applicable, in exchange for return of the vehicle.
8    (g) An agreement for the sale of a used motor vehicle by a
9motor vehicle dealer subject to this Section is voidable at the
10option of the consumer, unless it contains on its face the
11following conspicuous statement printed in boldface 10-point
12or larger type set off from the body of the agreement:
13    "Illinois law requires that this vehicle will be free of a
14defect in a Power Train component for 15 days or 500 miles
15after delivery, whichever is earlier, except with regard to
16particular defects disclosed on the first page of this
17agreement. "Power Train component" means the engine block,
18head, all internal engine parts, oil pan and gaskets, water
19pump, intake manifold, transmission, and all internal
20transmission parts, torque converter, drive shaft, universal
21joints, rear axle and all rear axle internal parts, and rear
22wheel bearings. You (the consumer) will have to pay up to $25
23for each of the first 2 repairs if the warranty is violated.".
24    (h) The inclusion in the agreement of the statement
25prescribed in subsection (g) of this Section does not create an
26express warranty.

 

 

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1    (i) A consumer of a used motor vehicle may waive the
2implied warranty of merchantability only for a particular
3defect in the vehicle and only if all of the following
4conditions 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
19you that this vehicle has the following problem or problems and
20you agree to buy the vehicle on those terms:
211.........................................................
222.........................................................
233.........................................................".
24    (j) A motor vehicle dealer subject to this Section has the
25burden to prove by a preponderance of the evidence that the
26dealer complied with this Section.

 

 

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1    (k) It shall be an affirmative defense to any claim under
2this 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
12merchantability identified herein, a motor vehicle dealer is
13not required to provide any further express or implied
14warranties 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
24vehicles, as defined in the Illinois Vehicle Code, or to
25collector motor vehicles.
26    (a) The dealer is liable to the purchasing consumer for the

 

 

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1following share of the cost of the repair of Power Train
2components for a period of 30 days from date of delivery,
3unless the repairs have become necessary by abuse, negligence,
4or collision. The burden of establishing that a claim for
5repairs is not within this Section shall be on the selling
6dealer. The dealer's share of such repair costs is:
7    (1) in the case of a motor vehicle which is not more than 2
8years old, 50%;
9    (2) in the case of a motor vehicle which is 2 or more, but
10less than 3 years old, 25%;
11    (3) in the case of a motor vehicle which is 3 or more, but
12less than 4 years old, 10%; and
13    (4) in the case of a motor vehicle which is 4 or more years
14old, none.
15    (b) Notwithstanding the foregoing, such a dealer and a
16purchasing consumer may negotiate a sale and purchase that is
17not subject to this Section if there is stamped on any purchase
18order, contract, agreement, or other instrument to be signed by
19the consumer as a part of that transaction, in at least
2010-point bold type immediately above the signature line, the
21following:
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
25the engine block, head, all internal engine parts, oil pan and
26gaskets, water pump, intake manifold, transmission, and all

 

 

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1internal transmission parts, torque converter, drive shaft,
2universal joints, rear axle and all rear axle internal parts,
3and rear wheel bearings.
4    (d) The repair liability means that the dealer will make
5necessary Power Train component repairs in his shop, or in the
6shop of his service affiliate, on the basis of his regular list
7price charge for parts and labor, where the flat rate list
8price does not exceed 50% of the selling price of the vehicle
9at the time repairs are requested.
10    (e) The age of the vehicle shall be measured according to
11the manufacturer's model year designation as shown on the
12Certificate of Title or Registration Certificate. Vehicles
13shall be designated as current year models, one year old, 2
14year old, and so forth according to the time that has elapsed
15since January 1 of the appropriate model year so designated.
16    (f) This Section does not preclude the issuance of a
17warranty or guarantee by a motor vehicle dealer or motor car
18manufacturer that meets or exceeds the basic provisions of
19paragraph (a).
20    (g) After the effective date of this amendatory Act of
211989, executives' and officials' cars when so advertised shall
22have been used exclusively by executives of the parent motor
23car manufacturer's personnel or by an executive of an
24authorized dealer in the same make of car. These cars, so
25advertised, shall not have been sold to a member of the public
26prior to the appearance of the advertisement.

 

 

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