HB4377ham002 99TH GENERAL ASSEMBLY

Rep. Rita Mayfield

Filed: 4/6/2016

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 4377

2    AMENDMENT NO. ______. Amend House Bill 4377 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 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

 

 

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1licensed under the Illinois Vehicle Code or by an auction
2company at an auction that is open to the general public may
3not exclude, modify, or disclaim the implied warranty of
4merchantability prescribed in Section 2-314 of the Uniform
5Commercial Code or limit the remedies for a breach of the
6warranty before midnight of the 15th calendar day after
7delivery of a used motor vehicle or until a used motor vehicle
8is driven 500 miles after delivery, whichever is earlier. In
9calculating time under this Section, a day on which the
10warranty is breached and all subsequent days in which the used
11motor vehicle fails to conform with the implied warranty of
12merchantability are excluded. In calculating distance under
13this Section, the miles driven to obtain or in connection with
14the repair, servicing, or testing of a used motor vehicle that
15fails to conform with the implied warranty of merchantability
16are excluded. An attempt to exclude, modify, or disclaim the
17implied warranty of merchantability or to limit the remedies
18for a breach of the warranty in violation of this Section
19renders a purchase agreement voidable at the option of the
20purchaser.
21    (c) An implied warranty of merchantability is met if a used
22motor vehicle functions free of a defect in a Power Train
23component. As used in this Section, "Power Train component"
24means the engine block, head, all internal engine parts, oil
25pan and gaskets, water pump, intake manifold, transmission, and
26all internal transmission parts, torque converter, drive

 

 

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1shaft, universal joints, rear axle and all rear axle internal
2parts, and rear wheel bearings.
3    The implied warranty of merchantability expires at
4midnight of the 15th calendar day after delivery of a used
5motor vehicle or when a used motor vehicle is driven 500 miles
6after delivery, whichever is earlier. In calculating time, a
7day on which the implied warranty of merchantability is
8breached is excluded and all subsequent days in which the used
9motor vehicle fails to conform with the warranty are also
10excluded. In calculating distance, the miles driven to obtain
11or in connection with the repair, servicing, or testing of a
12used motor vehicle that fails to conform with the implied
13warranty of merchantability are excluded.
14    (d) An implied warranty of merchantability does not extend
15to damage that occurs after the sale of the used motor vehicle
16that results from:
17        (1) off-road use;
18        (2) racing;
19        (3) towing;
20        (4) abuse;
21        (5) misuse;
22        (6) neglect;
23        (7) failure to perform regular maintenance; and
24        (8) failure to maintain adequate oil, coolant, and
25    other required fluids or lubricants.
26    (e) If the implied warranty of merchantability described in

 

 

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1this Section is breached, the consumer shall give reasonable
2notice to the seller no later than 5 business days after the
3end of the statutory warranty period. Before the consumer
4exercises another remedy pursuant to Article 2 of the Uniform
5Commercial Code, the seller shall have a reasonable opportunity
6to repair the used motor vehicle. The consumer shall pay
7one-half of the cost of the first 2 repairs necessary to bring
8the used motor vehicle into compliance with the warranty. The
9payments by the consumer are limited to a maximum payment of
10$25 for each repair.
11    (f) The maximum liability of a seller for repairs pursuant
12to this Section is limited to the purchase price paid for the
13used motor vehicle, to be refunded to the consumer or lender,
14as applicable, in exchange for return of the vehicle.
15    (g) An agreement for the sale of a used motor vehicle by a
16motor vehicle dealer subject to this Section is voidable at the
17option of the consumer, unless it contains on its face the
18following conspicuous statement printed in boldface 10-point
19or larger type set off from the body of the agreement:
20    "Illinois law requires that this vehicle will be free of a
21defect in a Power Train component for 15 days or 500 miles
22after delivery, whichever is earlier, except with regard to
23particular defects disclosed on the first page of this
24agreement. "Power Train component" means the engine block,
25head, all internal engine parts, oil pan and gaskets, water
26pump, intake manifold, transmission, and all internal

 

 

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1transmission parts, torque converter, drive shaft, universal
2joints, rear axle and all rear axle internal parts, and rear
3wheel bearings. You (the consumer) will have to pay up to $25
4for each of the first 2 repairs if the warranty is violated.".
5    (h) The inclusion in the agreement of the statement
6prescribed in subsection (g) of this Section does not create an
7express warranty.
8    (i) A consumer of a used motor vehicle may waive the
9implied warranty of merchantability only for a particular
10defect in the vehicle and only if all of the following
11conditions are satisfied:
12        (1) the motor vehicle dealer subject to this Section
13    fully and accurately discloses to the consumer that because
14    of circumstances unusual to the business of the used motor
15    vehicle dealer, the used motor vehicle has a particular
16    defect;
17        (2) the consumer agrees to buy the used motor vehicle
18    after disclosure of the defect; and
19        (3) before the sale, the consumer indicates agreement
20    to the waiver by signing and dating the following
21    conspicuous statement that is printed on the first page of
22    the sales agreement or on a separate document in boldface
23    10-point or larger type and that is written in the language
24    in which the presentation was made:
25    "Attention consumer: sign here only if the dealer has told
26you that this vehicle has the following problem or problems and

 

 

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1you agree to buy the vehicle on those terms:
21.........................................................
32.........................................................
43.........................................................".
5    (j) A motor vehicle dealer subject to this Section has the
6burden to prove by a preponderance of the evidence that the
7dealer complied with this Section.
8    (k) It shall be an affirmative defense to any claim under
9this Section that:
10        (1) an alleged nonconformity does not substantially
11    impair the use and market value of the motor vehicle;
12        (2) a nonconformity is the result of abuse, neglect, or
13    unauthorized modifications or alterations of the motor
14    vehicle;
15        (3) a claim by a consumer was not filed in good faith;
16    or
17        (4) any other affirmative defense allowed by law.
18    (l) Other than the 15 day, 500 mile implied warranty of
19merchantability identified herein, a motor vehicle dealer is
20not required to provide any further express or implied
21warranties to a purchasing consumer unless:
22        (1) the motor vehicle dealer is required by federal or
23    State law to provide a further express or implied warranty;
24    or
25        (2) the motor vehicle dealer fails to fully inform and
26    disclose to the consumer that the vehicle is being sold

 

 

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1    without any further express or implied warranties, other
2    than the 15 day, 500 mile implied warranty of
3    merchantability identified in this Section.
4    (m) This Section does not apply to the sale of antique
5vehicles, as defined in the Illinois Vehicle Code, or to
6collector motor vehicles.
7    (a) The dealer is liable to the purchasing consumer for the
8following share of the cost of the repair of Power Train
9components for a period of 30 days from date of delivery,
10unless the repairs have become necessary by abuse, negligence,
11or collision. The burden of establishing that a claim for
12repairs is not within this Section shall be on the selling
13dealer. The dealer's share of such repair costs is:
14    (1) in the case of a motor vehicle which is not more than 2
15years old, 50%;
16    (2) in the case of a motor vehicle which is 2 or more, but
17less than 3 years old, 25%;
18    (3) in the case of a motor vehicle which is 3 or more, but
19less than 4 years old, 10%; and
20    (4) in the case of a motor vehicle which is 4 or more years
21old, none.
22    (b) Notwithstanding the foregoing, such a dealer and a
23purchasing consumer may negotiate a sale and purchase that is
24not subject to this Section if there is stamped on any purchase
25order, contract, agreement, or other instrument to be signed by
26the consumer as a part of that transaction, in at least

 

 

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110-point bold type immediately above the signature line, the
2following:
3
"THIS VEHICLE IS SOLD AS IS WITH NO WARRANTY
4
AS TO MECHANICAL CONDITION"
5    (c) As used in this Section, "Power Train components" means
6the engine block, head, all internal engine parts, oil pan and
7gaskets, water pump, intake manifold, transmission, and all
8internal transmission parts, torque converter, drive shaft,
9universal joints, rear axle and all rear axle internal parts,
10and rear wheel bearings.
11    (d) The repair liability means that the dealer will make
12necessary Power Train component repairs in his shop, or in the
13shop of his service affiliate, on the basis of his regular list
14price charge for parts and labor, where the flat rate list
15price does not exceed 50% of the selling price of the vehicle
16at the time repairs are requested.
17    (e) The age of the vehicle shall be measured according to
18the manufacturer's model year designation as shown on the
19Certificate of Title or Registration Certificate. Vehicles
20shall be designated as current year models, one year old, 2
21year old, and so forth according to the time that has elapsed
22since January 1 of the appropriate model year so designated.
23    (f) This Section does not preclude the issuance of a
24warranty or guarantee by a motor vehicle dealer or motor car
25manufacturer that meets or exceeds the basic provisions of
26paragraph (a).

 

 

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1    (g) After the effective date of this amendatory Act of
21989, executives' and officials' cars when so advertised shall
3have been used exclusively by executives of the parent motor
4car manufacturer's personnel or by an executive of an
5authorized dealer in the same make of car. These cars, so
6advertised, shall not have been sold to a member of the public
7prior to the appearance of the advertisement.
8    Any person who violates this Section commits an unlawful
9practice within the meaning of this Act.
10(Source: P.A. 86-351; 87-1140.)".