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| [ Engrossed ] | [ Enrolled ] | [ House Amendment 001 ] |
| [ Senate Amendment 001 ] |
90_SB1039
New Act
Creates the Automotive Repair Act. Requires that
automotive repair facilities disclose certain information
concerning estimates for repair work, warranties, and other
matters. Provides procedures for consumer authorization of
repairs. Makes violation of the Act an unlawful practice
under the Consumer Fraud and Deceptive Business Practices
Act.
LRB9002918DJpkA
LRB9002918DJpkA
1 AN ACT concerning the automotive repair industry.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5 Automotive Repair Act.
6 Section 5. Legislative finding. The automotive repair
7 industry supports good communication between motor vehicle
8 repair facilities and their customers. The General Assembly
9 recognizes that improved communications and accurate
10 representations between automotive repair facilities and
11 their customers will increase consumer confidence, reduce the
12 likelihood of disputes arising, and promote fair and
13 nondeceptive practices, thereby enhancing the safety and
14 reliability of motor vehicles serviced by motor vehicle
15 repair facilities in the State of Illinois.
16 Section 10. Definitions. In this Act:
17 "Automotive repair" includes, but is not limited to:
18 (1) All repairs to motor vehicles that are commonly
19 performed in a motor vehicle repair facility by a motor
20 vehicle technician, including the diagnosis,
21 installation, exchange, or repair of mechanical or
22 electrical parts or units for any vehicle, the
23 performance of any electrical or mechanical adjustment
24 to any vehicle, or the performance of any service work
25 required for routine maintenance or repair of any
26 vehicle. The term does not include commercial fleet
27 repair or maintenance transactions involving 2 or more
28 vehicles or ongoing service or maintenance contracts
29 involving vehicles used primarily for business purposes.
30 (2) All repair work in motor vehicle repair
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1 facilities that perform one or more specialties within
2 the automotive repair service industry, including, but
3 not limited to, refinishing, brake, electrical, exhaust
4 repair or installation, frame, unibody, front-end,
5 radiators, tires, transmission, tune-up, and windshield.
6 (3) The removal, replacement, or repair of exterior
7 body panels; the removal, replacement, or repair of
8 structural and nonstructural body components; the
9 removal, replacement, or repair of collision damaged
10 suspension components; and the refinishing of automotive
11 components.
12 "Automotive repair facility" or "motor vehicle repair
13 facility" means any person, firm, association, or corporation
14 that for compensation engages in the business of automotive
15 repair or diagnosis, or both, of malfunctions of motor
16 vehicles.
17 A "used" part consists of a used assembly removed from a
18 vehicle and installed on a vehicle undergoing repair without
19 the benefit of being rebuilt or remanufactured.
20 Section 15. Disclosures to consumers; estimates.
21 (a) Disclosures required. No work for compensation that
22 exceeds $100 shall be commenced without specific
23 authorization from the consumer after the disclosures set
24 forth in this Section.
25 (b) Estimated costs. Every motor vehicle repair
26 facility shall either (i) give to each consumer a written
27 estimated price for labor and parts for a specific repair
28 and shall not charge for work done or parts supplied in an
29 amount that exceeds the estimate by more than 10% without
30 oral or written consent of the consumer or (ii) give to each
31 consumer a written price limit for each specific repair and
32 shall not exceed that limit without oral or written consent
33 of the consumer. Either option shall include an estimate of
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1 the time necessary to complete the repair, if in excess of
2 one working day. The estimate shall include the total costs
3 to repair the vehicle.
4 Estimates shall include all charges to be paid by the
5 consumer to complete the repair, including any charges for
6 estimates and diagnostics.
7 (c) Description of parts. Motor vehicle repair
8 facilities shall describe in the estimate the parts needed
9 to effectuate the repair and whether parts are new or used.
10 (d) Calculation of labor costs. Estimates shall
11 indicate that the motor vehicle repair facility may use a
12 combination of industry standard flat rate (time) manuals,
13 actual time, or condition of the vehicle to determine labor
14 cost. This disclosure mandate may also be fulfilled by
15 means of a sign that provides the same information to the
16 consumer. Such a sign shall be posted at a location that
17 can be easily viewed by the consumer.
18 (e) Required or suggested repairs. Estimates shall
19 indicate whether the estimated repairs are required or
20 suggested and the reason or reasons for the requirement or
21 suggestion.
22 (f) Disassembly and reassembly charges. If it is
23 necessary to disassemble, or partially disassemble, a
24 vehicle or vehicle component in order to provide the consumer
25 with a written estimate for required repair or maintenance,
26 the estimate shall show the cost of any disassembly or
27 reassembly, or both, if the consumer elects not to proceed
28 with the repair or maintenance of the vehicle.
29 (g) Date. The estimate shall include the date the
30 estimate was prepared or the date the vehicle was presented
31 to the motor vehicle repair facility for repair or
32 servicing, or both, the odometer reading on the vehicle at
33 the time it was left with the motor vehicle repair facility,
34 and a promised date of delivery.
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1 (h) Return of replaced parts. At the time the work order
2 is taken, the motor vehicle repair facility shall offer to
3 return or show the replaced parts to the consumer. The
4 motor vehicle repair facility shall return or display
5 replaced parts to the consumer upon the completion of the
6 work, except those parts that the motor vehicle repair
7 facility is required to return to the manufacturer or
8 distributor under a written warranty or exchange agreement.
9 The motor vehicle repair facility shall not be required to
10 show a replaced part if no charge is being made for the
11 replaced part. The motor vehicle repair facility is required
12 to retain replaced parts only until the consumer takes
13 possession of the vehicle.
14 Section 20. Notice of consumer's rights.
15 (a) Estimate. Every motor vehicle repair facility shall
16 disclose to every prospective consumer an estimated price
17 quotation or the option to waive the price quotation by
18 completing the following statement with the consumer's
19 signature:
20 "You are entitled to a price estimate for the repairs you
21 have authorized. The repair price may be less than the
22 estimate but shall not exceed (1) any price limited estimate
23 or (2) any parts and labor estimate by more than 10%.
24 Additional repairs may not be performed without your
25 consent. You may waive your right to a written estimate and
26 require that you be notified if the price exceeds an amount
27 you have specified.
28 You may waive your right to an estimate, which gives the
29 motor vehicle repair facility the right to set the price
30 without your permission.
31 Your signature will indicate your selection.
32 (a) I request an estimate in writing before you
33 begin repairs.
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1 Signature ..........................................
2 (b) Please proceed with repairs but call me for
3 approval before continuing if the price exceeds $
4 .............
5 Signature ..........................................
6 (c) I do not want an estimate and you may set the
7 price of repairs.
8 Signature ..........................................
9 Date .......... Time ..........
10 This estimated price for authorized repairs will be
11 honored if the motor vehicle is delivered to the facility
12 within the time period agreed to by the consumer and the
13 motor vehicle repair facility."
14 (b) Replaced parts; right. A consumer shall be informed
15 of his or her right to receive or inspect replaced parts
16 prior to the consumer executing any document or engaging the
17 motor vehicle repair facility or technician for the work.
18 The information shall be given to the consumer on the face
19 of any contract, work order form, or other document
20 evidencing the engagement of the motor vehicle repair
21 facility or by separate written document, in at least 10
22 point boldface type, as follows:
23 "You are entitled by law to the return of all parts
24 replaced, except those that are too heavy or large and those
25 required to be sent back to the manufacturer or distributor
26 because of warranty work or an exchange agreement, provided
27 that you make a request at the time of work authorization.
28 You are entitled to inspect the parts that cannot be
29 returned to you."
30 (c) Replaced parts; choice. Every motor vehicle repair
31 facility shall give consumers the choice of receiving
32 replaced parts by including on all estimate forms the
33 following statement:
34 "......... I request the return of parts replaced.
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1 ......... I do not want replaced parts returned to
2 me.
3 ......... I want only to inspect replaced parts."
4 This statement shall be in 10 point or larger bold
5 capital type face and executed with one legible copy to the
6 consumer requesting repairs.
7 Section 25. Estimated price insufficient. If it is
8 determined that the estimated price is insufficient because
9 of unforeseen circumstances, the consumer's consent must be
10 obtained before the work estimated is done or parts estimated
11 are supplied. If the consumer's consent is oral, the motor
12 vehicle repair facility shall make a notation on the work
13 order or estimate and on the invoice of the date, time, name
14 of person authorizing the additional repairs, and telephone
15 number called, if any, together with a specification of the
16 additional parts and labor and the total additional cost.
17 Section 30. Consumer's authorization of repairs or other
18 action. After receiving the estimate, the owner or the
19 owner's agent may (i) authorize the repairs at the estimate
20 of cost and time in writing, (ii) request the return of the
21 motor vehicle in a disassembled state, or (iii) request that
22 the vehicle be assembled in reasonably the same condition as
23 when released to the motor vehicle repair facility, in which
24 case the motor vehicle repair facility shall make the motor
25 vehicle available for possession within 3 working days after
26 the time of request, unless parts are not available, making
27 additional time necessary. The motor vehicle repair
28 facility may receive payment for only those items on the
29 schedule of charges to which the facility is entitled.
30 Section 35. Inability to deliver motor vehicle to
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1 facility during business hours. When the consumer is unable
2 to deliver the motor vehicle to the motor vehicle repair
3 facility during business hours and the consumer has
4 requested the motor vehicle repair facility to take
5 possession of the motor vehicle for the purpose of repairing
6 or estimating the cost of repairing the motor vehicle, the
7 motor vehicle repair facility may not undertake the
8 diagnosing or repairing of any malfunction of the motor
9 vehicle for compensation unless the motor vehicle repair
10 facility has complied with all of the following conditions:
11 (1) The motor vehicle repair facility has prepared
12 a written estimate of the price for labor and parts
13 necessary to repair the motor vehicle.
14 (2) By telephone or otherwise, the consumer has
15 been given all of the material information on the
16 written estimate, and the consumer has approved the
17 written estimate.
18 (3) The consumer has given his or her oral or
19 written authorization to the motor vehicle repair
20 facility to make the repairs pursuant to the written
21 estimate.
22 If the consumer's authorization is oral, the motor
23 vehicle repair facility shall make, on both the written
24 estimate and the invoice, a notation of the name of the
25 person authorizing the repairs, the date, the time, and the
26 telephone number called, if any. Any charge for parts or
27 labor in excess of the original estimate must be separately
28 authorized by the consumer as provided in subsection (b) of
29 Section 15 and in Section 25.
30 Section 40. Motor vehicle repair facility unable to
31 complete repair in time. If the motor vehicle repair facility
32 is unable to complete the repairs in the time estimated, the
33 facility shall notify the owner or the owner's agent of this
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1 fact. After receiving that notification the owner or the
2 owner's agent may request return of the motor vehicle in
3 either an assembled or disassembled state, in which case the
4 motor vehicle repair facility shall make the motor vehicle
5 available for possession within 3 working days from the date
6 of request. The motor vehicle repair facility may receive
7 payment for the work actually done and for those items on
8 the schedule of charges to which the facility is entitled.
9 Section 45. Consumer's waiver of estimate. A consumer
10 may waive the right to receive a written estimate if the
11 waiver is voluntary and made without coercion by the motor
12 vehicle repair facility. A motor vehicle repair facility or
13 anyone in its employ shall not make use of the waiver in an
14 attempt to evade this Act. Nothing in this Section shall be
15 construed as requiring a motor vehicle repair facility to
16 give a written estimated price if the motor vehicle repair
17 facility does not agree to perform the requested repair.
18 Section 50. Disclosures to consumers; invoices.
19 (a) Disclosures required. Whether or not a written
20 estimate is required, parts and labor provided by a motor
21 vehicle repair facility shall be clearly and accurately
22 recorded in writing on an invoice and shall include all of
23 the items set forth in this Section.
24 (b) Itemization of cost of repair performed. The
25 invoice shall show the motor vehicle repair facility's
26 business name and address, the date of the invoice, the
27 odometer reading at the time the invoice was prepared, the
28 name of the consumer, the description of the vehicle, and
29 the terms and time limit of any guarantee for the repair work
30 performed. In addition, the invoice shall describe all
31 repair work done by a motor vehicle repair facility,
32 including all warranty work, and shall separately identify
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1 (i) each major part supplied in a manner so that the consumer
2 can understand what was purchased and (ii) the total price
3 charged for all parts and labor.
4 Service work and parts shall be listed separately on the
5 invoice, which shall also state separately the subtotal
6 prices for service work and for parts, not including sales
7 tax, and shall state separately the sales tax, if
8 applicable, to each.
9 The invoice shall itemize any additional charges and
10 include those charges in the total presented to the consumer.
11 (c) Description of parts installed. The invoice shall
12 include a description of the parts installed.
13 (d) Copies of invoices. A legible copy of the invoice
14 shall be given to the consumer and a legible copy shall be
15 retained by the motor vehicle repair facility for a period
16 of 2 years from the date of repair as a part of the motor
17 vehicle repair facility's records. Records may be stored at
18 a separate location.
19 Section 55. Consumer disclosures; guarantees;
20 warranties.
21 (a) If a motor vehicle repair facility provides a
22 warranty on repair parts and labor, the facility shall put
23 the warranty in writing and give a legible copy to the
24 consumer. The consumer's copy of the warranty must contain
25 the following:
26 (1) The nature and extent of the warranty,
27 including a description of parts or service included in
28 or excluded from the warranty.
29 (2) The duration of the warranty and the
30 requirements to be performed by warrantee before the
31 warrantor will fulfill the warranty.
32 (3) All conditions and limitations of the warranty
33 and the manner in which the warrantor will fulfill the
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1 warranty, such as by repair, replacement, or refund.
2 (4) Any options of the warrantor or warrantee.
3 (5) The warrantor's identity and address.
4 (b) When repair or diagnostic work is performed pursuant
5 to a warranty, a motor vehicle repair facility shall give an
6 estimate of time to complete the repairs.
7 Section 60. Consumer disclosures; required signs. Every
8 motor vehicle repair facility shall post in a prominent place
9 on the business premises one or more signs, readily visible
10 to customers, in the following form:
11 YOUR CUSTOMER RIGHTS. YOU ARE ENTITLED BY LAW TO:
12 1. A WRITTEN ESTIMATE FOR REPAIRS THAT WILL COST
13 MORE THAN $100 UNLESS WAIVED OR ABSENT FACE-TO-FACE
14 CONTACT (SEE ITEM 4 BELOW).
15 2. RETURN OR INSPECTION OF ALL REPLACED PARTS, IF
16 REQUESTED AT TIME OF REPAIR AUTHORIZATION.
17 3. AUTHORIZE ORALLY OR IN WRITING ANY REPAIRS THAT
18 EXCEED THE ESTIMATED TOTAL PRE-SALES-TAX COST BY MORE
19 THAN 10% OR THAT EXCEED THE LIMITED PRICE ESTIMATE.
20 4. AUTHORIZE ANY REPAIRS ORALLY OR IN WRITING IF
21 YOUR VEHICLE IS LEFT WITH THE MOTOR VEHICLE REPAIR
22 FACILITY WITHOUT FACE-TO-FACE CONTACT BETWEEN YOU AND
23 THE MOTOR VEHICLE REPAIR FACILITY PERSONNEL.
24 IF YOU HAVE AUTHORIZED A REPAIR IN ACCORDANCE WITH
25 THE ABOVE INFORMATION, YOU ARE REQUIRED TO PAY FOR THE
26 COSTS OF THE REPAIR PRIOR TO TAKING THE VEHICLE FROM THE
27 PREMISES.
28 The first line of each sign shall be in letters not less
29 than 1.5 inches in height, and the remaining lines shall be
30 in letters not less than 0.5 inch in height.
31 Section 65. Recordkeeping. Every motor vehicle repair
32 facility shall maintain copies of signed estimates and all
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1 work orders, invoices, parts purchase orders, appraisals, and
2 schedules of charges prepared by that repair facility. The
3 copies shall be kept for 2 years and shall be available for
4 inspection by the Attorney General.
5 Section 70. Removal of vehicle from facility. Upon
6 reasonable notice and during the motor vehicle repair
7 facility's business hours, a consumer may remove a vehicle
8 from a motor vehicle repair facility upon paying for the
9 following:
10 (1) Labor actually performed.
11 (2) Parts actually installed.
12 (3) Parts ordered specifically for the consumer's
13 car if the order is not cancelable or the parts not
14 returnable for cash or credit.
15 (4) Storage charges imposed in accordance with the
16 schedule of charges if disclosed to consumers prior to
17 repairs.
18 Section 75. Lien barred. A motor vehicle repair
19 facility that fails to comply with Section 15, 20, 25, 30,
20 35, 40, 45, 50, 55, or 60 is barred from asserting a
21 possessory or chattel lien for the amount of the
22 unauthorized parts or labor upon the motor vehicle or
23 component.
24 Section 80. Unlawful acts or practices. Each of the
25 following acts or practices is unlawful when committed by a
26 motor vehicle repair facility:
27 (1) Advertising in a false, deceptive, or
28 misleading manner.
29 (2) Charging a consumer for parts not delivered or
30 installed or a labor operation or repair procedure that
31 has not actually been performed.
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1 (3) Unauthorized operation of a consumer's vehicle
2 for purposes not related to repair or diagnosis.
3 (4) Failing or refusing to provide a consumer, upon
4 request, a copy, at no charge, of any document signed by
5 the consumer.
6 (5) Retaining duplicative payment from both the
7 consumer and the warranty or extended service contract
8 provider for the same covered component, part, or labor.
9 (6) Charging a consumer for unnecessary repairs.
10 For purposes of this paragraph, "unnecessary repairs"
11 means those repairs for which there is no reasonable
12 basis for performing the service. A reasonable basis
13 includes: (i) that the repair service is consistent
14 with specifications established by law or the
15 manufacturer of the motor vehicle, component, or part;
16 (ii) that the repair is in accordance usual and
17 customary practices; (iii) that the repair was performed
18 at the specific request of the consumer after the
19 technician disclosed to the consumer the reasons for
20 recommending the repair when the recommendation is not in
21 accordance with manufacturer specifications or accepted
22 trade practices; or (iv) that the repair is at the
23 consumer's request.
24 (7) Misrepresenting the terms of a warranty,
25 guarantee, or service agreement.
26 (8) Altering a motor vehicle to create a condition
27 requiring repair.
28 (9) Failing to honor a warranty, guarantee, or
29 service agreement to which the motor vehicle repair
30 facility is a party.
31 (10) Charging or receiving payment for repairs not
32 authorized by the consumer under Section 15, 20, 25, 30,
33 35, 40, 45, 50, 55, or 60.
34 (11) Failing to comply with any other requirements
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1 under this Act.
2 Section 85. Violations.
3 (a) A violation of any of the provisions of this Act is
4 an unlawful practice under the Consumer Fraud and Deceptive
5 Business Practices Act. All remedies, penalties, and
6 authority granted to the Attorney General by that Act shall
7 be available for the enforcement of this Act.
8 (b) Any consumer injured by a violation of this Act may
9 bring an action for the recovery of damages plus costs and
10 reasonable attorney's fees.