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                                                       PRINTER'S NO. 688

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 623 Session of 1997


        INTRODUCED BY LAWLESS, CLARK, LYNCH, E. Z. TAYLOR, HENNESSEY,
           SATHER, STABACK, WAUGH, BOSCOLA, DeLUCA, RAMOS AND CIVERA,
           FEBRUARY 20, 1997

        REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, FEBRUARY 20, 1997

                                     AN ACT

     1  Requiring disclosure of new motor vehicle damage; and providing
     2     for enforcement.

     3     The General Assembly of the Commonwealth of Pennsylvania
     4  hereby enacts as follows:
     5  Section 1.  Short title.
     6     This act shall be known and may be cited as the New Motor
     7  Vehicle Damage Disclosure Act.
     8  Section 2.  Definitions.
     9     The following words and phrases when used in this act shall
    10  have the meanings given to them in this section unless the
    11  context clearly indicates otherwise:
    12     "New motor vehicle."  A vehicle, regardless of mileage, which
    13  has never been registered or titled in this Commonwealth or any
    14  other state or jurisdiction on which a tax imposed under Article
    15  II of the act of March 4, 1971 (P.L.6, No.2), known as the Tax
    16  Reform Code of 1971, has been paid prior to its sale.
    17  Section 3.  New motor vehicle damage disclosure.


     1     (a)  Notice to purchaser.--The selling vehicle dealer shall
     2  notify the purchaser of a new vehicle in writing at the time of
     3  sale of any damage or damage repairs incurred by the new vehicle
     4  which exceeds the greater of $500 or 3% of the manufacturer's
     5  suggested retail price. Damage exceeding the disclosure amount
     6  shall be disclosed by the vehicle dealer when:
     7         (1)  the manufacturer or its agent, in accordance with
     8     the act of December 22, 1983 (P.L.306, No.84), known as the
     9     Board of Vehicles Act, discloses that, at any time after the
    10     manufacturing process is complete, damage occurred or damage
    11     repairs were made; or
    12         (2)  the vehicle dealer knows or should know based on
    13     facts indicating that other damage or damage repair exists in
    14     addition to the damage or repairs required to be disclosed
    15     under paragraph (1).
    16  A vehicle dealer shall not misrepresent or mislead a purchaser
    17  if the purchaser inquires about the existence of damage or
    18  damage repairs made.
    19     (b)  Damage repair cost calculation.--In determining whether
    20  damage disclosure is required, repair costs shall be calculated
    21  at the vehicle dealer's retail charge on the date the repairs
    22  were made for:
    23         (1)  Parts, which shall only be replaced with new,
    24     original equipment manufacturer parts.
    25         (2)  Labor multiplied by the time taken to make the
    26     repairs as established by a time allowance from a repair
    27     manual utilized by the dealer.
    28  Replacement of any permanently sealed-glass window shall be
    29  disclosed to the purchaser regardless of the cost of the
    30  replacement window. The value of any permanently sealed-glass
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     1  window replacement shall not be included in the calculation
     2  process to determine whether damage disclosure is required under
     3  this act. The value of any portion of a motor home designed,
     4  used or maintained primarily for human habitation shall not be
     5  included in the calculation process to determine whether damage
     6  disclosure is required under this act.
     7     (c)  Form for damage disclosure notice.--If damage disclosure
     8  to the purchaser is required under this act, the purchaser at
     9  the time of sale shall be provided with a fully completed copy
    10  of a damage disclosure form which shows the date of the
    11  disclosure, contains the name and address of the seller and in
    12  immediate proximity to the space provided for the signature of
    13  the purchaser in boldface type of a minimum size of ten points,
    14  a statement in substantially the following form:
    15                New Vehicle Damage Disclosure Notice
    16  In accordance with the Commonwealth of Pennsylvania's New Motor
    17  Vehicle Damage Disclosure Act and in connection with the
    18  purchase from __________________ (Dealer) of the motor
    19  vehicle described
    20  as follows:
    21  Year____Make___________________Type___________________
    22  Serial No._____________________Stock No.______________
    23  I/we the undersigned, hereby acknowledge that Dealer
    24  has disclosed to me/us before I/we agreed to purchase
    25  the above listed vehicle that the vehicle has been
    26  subjected to postmanufacturing damage as follows:
    27  Damage Description: __________________________________
    28  ______________________________________________________
    29  ______________________________________________________
    30  ______________________________________________________
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     1  ______________________________________________________
     2  ______________________________________________________
     3  The above disclosed damage or repaired damage is:
     4  ( ) covered         ( ) not covered        (check one)
     5  by the manufacturer's warranty.
     6  I/we further acknowledge that the listed damage has
     7  been repaired to my/our satisfaction.
     8  Date: ________
     9  ______________________      __________________________
    10  Signature of Purchaser      Signature of Co-Purchaser
    11  ______________________      __________________________
    12  Printed Name                Printed Name
    13  __________________________________
    14  Signature of Dealer Representative
    15  Section 4.  No rescission of sale.
    16     If disclosure is not required under this act, a purchaser may
    17  not revoke or rescind a sales contract and is not entitled to
    18  other damages or relief under section 7 due solely to the fact
    19  that the vehicle was damaged and repaired prior to the sale.
    20  Section 5.  Automobile Lemon Law rights reserved.
    21     Nothing in this act shall limit the purchaser from pursuing
    22  any other rights or remedies under the act of March 28, 1984
    23  (P.L.150, No.28), known as the Automobile Lemon Law.
    24  Section 6.  Board of Vehicles Act inapplicable.
    25     The provisions of the act of December 22, 1983 (P.L.306,
    26  No.84), known as the Board of Vehicles Act, shall not apply and
    27  is superseded by this act only with regard to a dealer's
    28  obligation to disclose vehicle damage to a purchaser.
    29  Section 7.  Exemption.
    30     The provisions of this act shall not apply to manufacturers,
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     1  distributors or dealers of manufactured housing, or
     2  manufacturers, distributors or dealers of motorcycles.
     3  Section 8.  Application of Consumer Protection Law.
     4     A violation of this shall constitute a violation under the
     5  act of December 17, 1968 (P.L.1224, No.387), known as the Unfair
     6  Trade Practices and Consumer Protection Law, and shall be
     7  subject to the enforcement provisions and private rights of
     8  action contained in that act. A court may provide for rescission
     9  of the sale under a private right action, if a violation of this
    10  act is found.
    11  Section 9.  Effective date.
    12     This act shall take effect in 60 days.












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