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

HB4377enr 99TH GENERAL ASSEMBLY

  
  
  

 


 
HB4377 EnrolledLRB099 15636 KTG 39929 b

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) This Section does not apply to vehicles with more than
17150,000 miles at the time of sale. In addition, this Section
18does not apply to vehicles with titles that have been branded
19"rebuilt" or "flood".
20    (c) Any sale of a used motor vehicle as described in
21subsection (a) may not exclude, modify, or disclaim the implied
22warranty of merchantability prescribed in Section 2-314 of the
23Uniform Commercial Code or limit the remedies for a breach of

 

 

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

 

 

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1after delivery, whichever is earlier. In calculating time, a
2day on which the implied warranty of merchantability is
3breached is excluded and all subsequent days in which the used
4motor vehicle fails to conform with the warranty are also
5excluded. In calculating distance, the miles driven to or by
6the seller to obtain or in connection with the repair,
7servicing, or testing of a used motor vehicle that fails to
8conform with the implied warranty of merchantability are
9excluded. An implied warranty of merchantability does not
10extend to damage that occurs after the sale of the used motor
11vehicle that 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    (f) If the implied warranty of merchantability described in
22this Section is breached, the consumer shall give reasonable
23notice to the seller no later than 2 business days after the
24end of the statutory warranty period. Before the consumer
25exercises another remedy pursuant to Article 2 of the Uniform
26Commercial Code, the seller shall have a reasonable opportunity

 

 

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1to repair the used motor vehicle. The consumer shall pay
2one-half of the cost of the first 2 repairs necessary to bring
3the used motor vehicle into compliance with the warranty. The
4payments by the consumer are limited to a maximum payment of
5$100 for each repair; however, the consumer shall only be
6responsible for a maximum payment of $100 if the consumer
7brings in the vehicle for a second repair for the same defect.
8Reasonable notice as defined in this Section shall include, but
9not be limited to:
10        (1) text, provided the seller has provided the consumer
11    with a cell phone number;
12        (2) phone call or message to the seller's business
13    phone number provided on the seller's bill of sale for the
14    purchase of the motor vehicle;
15        (3) in writing to the seller's address provided on the
16    seller's bill of sale for the purchase of the motor
17    vehicle;
18        (4) in person at the seller's address provided on the
19    seller's bill of sale for the purchase of the motor
20    vehicle.
21    (g) The maximum liability of a seller for repairs pursuant
22to this Section is limited to the purchase price paid for the
23used motor vehicle, to be refunded to the consumer or lender,
24as applicable, in exchange for return of the vehicle.
25    (h) An agreement for the sale of a used motor vehicle
26subject to this Section is voidable at the option of the

 

 

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1consumer, unless it contains on its face the following
2conspicuous statement printed in boldface 10-point or larger
3type set off from the body of the agreement:
4    "Illinois law requires that this vehicle will be free of a
5defect in a power train component for 15 days or 500 miles
6after delivery, whichever is earlier, except with regard to
7particular defects disclosed on the first page of this
8agreement. "Power train component" means the engine block,
9head, all internal engine parts, oil pan and gaskets, water
10pump, intake manifold, transmission, and all internal
11transmission parts, torque converter, drive shaft, universal
12joints, rear axle and all rear axle internal parts, and rear
13wheel bearings. You (the consumer) will have to pay up to $100
14for each of the first 2 repairs if the warranty is violated.".
15    (i) The inclusion in the agreement of the statement
16prescribed in subsection (h) of this Section does not create an
17express warranty.
18    (j) A consumer of a used motor vehicle may waive the
19implied warranty of merchantability only for a particular
20defect in the vehicle including, but not limited to, a rebuilt
21or flood-branded title and only if all of the following
22conditions are satisfied:
23        (1) the seller subject to this Section fully and
24    accurately discloses to the consumer that because of
25    circumstances unusual to the business, the used motor
26    vehicle has a particular defect;

 

 

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1        (2) the consumer agrees to buy the used motor vehicle
2    after disclosure of the defect; and
3        (3) before the sale, the consumer indicates agreement
4    to the waiver by signing and dating the following
5    conspicuous statement that is printed on the first page of
6    the sales agreement or on a separate document in boldface
7    10-point or larger type and that is written in the language
8    in which the presentation was made:
9        "Attention consumer: sign here only if the seller has
10    told you that this vehicle has the following problem or
11    problems and you agree to buy the vehicle on those terms:
12    1........................................................
13    2........................................................
14    3......................................................".
15    (k) It shall be an affirmative defense to any claim under
16this Section that:
17        (1) an alleged nonconformity does not substantially
18    impair the use and market value of the motor vehicle;
19        (2) a nonconformity is the result of abuse, neglect, or
20    unauthorized modifications or alterations of the motor
21    vehicle;
22        (3) a claim by a consumer was not filed in good faith;
23    or
24        (4) any other affirmative defense allowed by law.
25    (l) Other than the 15-day, 500-mile implied warranty of
26merchantability identified herein, a seller subject to this

 

 

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1Section is not required to provide any further express or
2implied warranties to a purchasing consumer unless:
3        (1) the seller is required by federal or State law to
4    provide a further express or implied warranty; or
5        (2) the seller fails to fully inform and disclose to
6    the consumer that the vehicle is being sold without any
7    further express or implied warranties, other than the 15
8    day, 500 mile implied warranty of merchantability
9    identified in this Section.
10    (m) This Section does not apply to the sale of antique
11vehicles, as defined in the Illinois Vehicle Code, or to
12collector motor vehicles.
13    (a) The dealer is liable to the purchasing consumer for the
14following share of the cost of the repair of Power Train
15components for a period of 30 days from date of delivery,
16unless the repairs have become necessary by abuse, negligence,
17or collision. The burden of establishing that a claim for
18repairs is not within this Section shall be on the selling
19dealer. The dealer's share of such repair costs is:
20    (1) in the case of a motor vehicle which is not more than 2
21years old, 50%;
22    (2) in the case of a motor vehicle which is 2 or more, but
23less than 3 years old, 25%;
24    (3) in the case of a motor vehicle which is 3 or more, but
25less than 4 years old, 10%; and
26    (4) in the case of a motor vehicle which is 4 or more years

 

 

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1old, none.
2    (b) Notwithstanding the foregoing, such a dealer and a
3purchasing consumer may negotiate a sale and purchase that is
4not subject to this Section if there is stamped on any purchase
5order, contract, agreement, or other instrument to be signed by
6the consumer as a part of that transaction, in at least
710-point bold type immediately above the signature line, the
8following:
9
"THIS VEHICLE IS SOLD AS IS WITH NO WARRANTY
10
AS TO MECHANICAL CONDITION"
11    (c) As used in this Section, "Power Train components" means
12the engine block, head, all internal engine parts, oil pan and
13gaskets, water pump, intake manifold, transmission, and all
14internal transmission parts, torque converter, drive shaft,
15universal joints, rear axle and all rear axle internal parts,
16and rear wheel bearings.
17    (d) The repair liability means that the dealer will make
18necessary Power Train component repairs in his shop, or in the
19shop of his service affiliate, on the basis of his regular list
20price charge for parts and labor, where the flat rate list
21price does not exceed 50% of the selling price of the vehicle
22at the time repairs are requested.
23    (e) The age of the vehicle shall be measured according to
24the manufacturer's model year designation as shown on the
25Certificate of Title or Registration Certificate. Vehicles
26shall be designated as current year models, one year old, 2

 

 

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1year old, and so forth according to the time that has elapsed
2since January 1 of the appropriate model year so designated.
3    (f) This Section does not preclude the issuance of a
4warranty or guarantee by a motor vehicle dealer or motor car
5manufacturer that meets or exceeds the basic provisions of
6paragraph (a).
7    (g) After the effective date of this amendatory Act of
81989, executives' and officials' cars when so advertised shall
9have been used exclusively by executives of the parent motor
10car manufacturer's personnel or by an executive of an
11authorized dealer in the same make of car. These cars, so
12advertised, shall not have been sold to a member of the public
13prior to the appearance of the advertisement.
14    Any person who violates this Section commits an unlawful
15practice within the meaning of this Act.
16(Source: P.A. 86-351; 87-1140.)
 
17    Section 99. Effective date. This Act takes effect July 1,
182017.