SENATE AMENDED
PRIOR PRINTER'S NOS. 853, 2871, 4003 PRINTER'S NO. 4067
No. 767 Session of 2001
INTRODUCED BY J. EVANS, BOYES, PIPPY, FORCIER, PETRARCA,
SOLOBAY, FAIRCHILD, ROEBUCK, BARRAR, BELARDI, CALTAGIRONE,
COLEMAN, FLICK, FREEMAN, HENNESSEY, HORSEY, JADLOWIEC,
KENNEY, LAUGHLIN, MYERS, RAYMOND, READSHAW, SAYLOR,
SCRIMENTI, STABACK, T. STEVENSON, E. Z. TAYLOR, TIGUE,
TRAVAGLIO, WALKO, WASHINGTON, WATSON, YOUNGBLOOD, SAINATO,
COSTA, CIVERA, DALLY, MARSICO, S. MILLER, ROSS, CORRIGAN,
L. I. COHEN, TRELLO AND BROWNE, FEBRUARY 14, 2001
AS AMENDED ON THIRD CONSIDERATION, IN SENATE, JUNE 19, 2002
AN ACT
1 Amending the act of March 28, 1984 (P.L.150, No.28), entitled
2 "An act relating to the rights of purchasers of defective new
3 motor vehicles," amending the title of the act; and further <--
4 providing for definitions, for repair obligations, for <--
5 manufacturer's duty for refund or replacement and for resale
6 of returned motor vehicle.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. The title of the act of March 28, 1984 (P.L.150, <--
10 No.28), known as the Automobile Lemon Law, is amended to read:
11 AN ACT
12 Relating to the rights of purchasers and lessees of defective
13 new motor vehicles.
14 Section 2. Sections 2, 4, 5 and 10 of the act are amended to
15 read:
16 Section 2. Definitions.
1 The following words and phrases when used in this act shall
2 have the meanings given to them in this section unless the
3 context clearly indicates otherwise:
4 "Dealer" or "motor vehicle dealer." A person in the business
5 of buying, selling, leasing or exchanging vehicles.
6 "Department." The Department of Transportation of the
7 Commonwealth.
8 "Lease price." Any cost incurred by the lessee as a result
9 of the lease, including, but not limited to, the aggregate
10 deposits, rental payments and any other fees paid to the lessor
11 for the leased vehicle.
12 "Manufacturer." Any person engaged in the business of
13 constructing or assembling new and unused motor vehicles or
14 engaged in the business of importing new and unused motor
15 vehicles into the United States for the purpose of selling or
16 distributing new and unused motor vehicles to motor vehicle
17 dealers in this Commonwealth.
18 "Manufacturer's express warranty" or "warranty." The written
19 warranty of the manufacturer of a new automobile of its
20 condition and fitness for use, including any terms or conditions
21 precedent to the enforcement of obligations under the warranty.
22 "New motor vehicle." Any new and unused self-propelled,
23 motorized conveyance driven upon public roads, streets or
24 highways which is designed to transport not more than 15
25 persons, which was purchased or leased and is registered in the
26 Commonwealth or purchased or leased elsewhere and registered for
27 the first time in this Commonwealth and is used, leased or
28 bought for use primarily for personal, family or household
29 purposes, including a vehicle used by a manufacturer or dealer
30 as a demonstrator or dealer car prior to its sale. The term does
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1 not include motorcycles, motor homes or off-road vehicles.
2 "Nonconformity." A defect or condition which substantially
3 impairs the use, value or safety of a new motor vehicle and does
4 not conform to the manufacturer's express warranty.
5 "Purchaser." A person, or his successors or assigns, who has
6 obtained possession or ownership of a new motor vehicle by
7 lease, transfer or purchase or who has entered into an agreement
8 or contract for the lease or purchase of a new motor vehicle
9 which is used, leased or bought for use primarily for personal,
10 family or household purposes.
11 Section 4. Repair obligations.
12 (a) Repairs required.--The manufacturer of a new motor
13 vehicle sold or leased and registered in the Commonwealth shall
14 repair or correct, at no cost to the purchaser, a nonconformity
15 which substantially impairs the use, value or safety of said
16 motor vehicle which may occur within a period of one year
17 following the actual delivery of the vehicle to the purchaser,
18 within the first 12,000 miles of use or during the term of the
19 warranty, whichever may first occur.
20 (b) Delivery of vehicle.--It shall be the duty of the
21 purchaser to deliver the nonconforming vehicle to the
22 manufacturer's authorized service and repair facility within the
23 Commonwealth, unless, due to reasons of size and weight or
24 method of attachment or method of installation or nature of the
25 nonconformity, such delivery cannot reasonably be accomplished.
26 Should the purchaser be unable to effect return of the
27 nonconforming vehicle, he shall notify the manufacturer or its
28 authorized service and repair facility. Written notice of
29 nonconformity to the manufacturer or its authorized service and
30 repair facility shall constitute return of the vehicle when the
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1 purchaser is unable to return the vehicle due to the
2 nonconformity. Upon receipt of such notice of nonconformity, the
3 manufacturer shall, at its option, service or repair the vehicle
4 at the location of nonconformity or pick up the vehicle for
5 service and repair or arrange for transporting the vehicle to
6 its authorized service and repair facility. All costs of
7 transporting the vehicle when the purchaser is unable to effect
8 return, due to nonconformity, shall be at the manufacturer's
9 expense.
10 Section 5. Manufacturer's duty for refund or replacement.
11 If the manufacturer fails to repair or correct a
12 nonconformity after a reasonable number of attempts, the
13 manufacturer shall, at the option of the purchaser, replace the
14 motor vehicle with a comparable motor vehicle of equal value or
15 accept return of the vehicle from the purchaser and refund to
16 the purchaser the full purchase price or lease price, including
17 all collateral charges, less a reasonable allowance for the
18 purchaser's use of the vehicle not exceeding 10c/ per mile
19 driven or 10% of the purchase price or lease price of the
20 vehicle, whichever is less. Refunds shall be made to the
21 purchaser and lienholder, if any, as their interests may appear.
22 A reasonable allowance for use shall be that amount directly
23 attributable to use by the purchaser prior to his first report
24 of the nonconformity to the manufacturer. In the event the
25 consumer elects a refund, payment shall be made within 30 days
26 of such election. A consumer shall not be entitled to a refund
27 or replacement if the nonconformity does not substantially
28 impair the use, value or safety of the vehicle or the
29 nonconformity is the result of abuse, neglect or modification or
30 alteration of the motor vehicle by the purchaser.
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1 Section 10. Resale of returned motor vehicle.
2 (a) Vehicles may not be resold, transferred or leased at
3 retail or wholesale.--If a motor vehicle has been [returned]
4 repurchased under the provisions of this act or a similar
5 statute of another state, it may not be resold, transferred or
6 leased in this State unless:
7 (1) The manufacturer provides the same express warranty
8 it provided to the original purchaser, except that the term
9 of the warranty need only last for 12,000 miles or 12 months
10 after the date of resale, transfer or lease, whichever is
11 earlier.
12 (2) The manufacturer provides the [consumer] purchaser,
13 lessee or transferee with a written statement on a separate
14 piece of paper, in ten point all capital type, in
15 substantially the following form:
16 "IMPORTANT: THIS VEHICLE WAS [RETURNED TO] REPURCHASED BY
17 THE MANUFACTURER BECAUSE IT DID NOT CONFORM TO THE
18 MANUFACTURER'S EXPRESS WARRANTY AND THE NONCONFORMITY WAS
19 NOT CURED WITHIN A REASONABLE TIME AS PROVIDED BY
20 PENNSYLVANIA LAW."
21 (3) The motor vehicle dealer, lessor or transferor
22 clearly and conspicuously discloses the manufacturer's
23 written notification prior to the resale or lease of the
24 repurchased motor vehicle.
25 (4) The motor vehicle dealer, lessor or transferor
26 obtains a signed receipt certifying, in a conspicuous and
27 understandable manner, that the written statement required
28 under this subsection has been provided. Access to the
29 receipt shall be maintained for four years. The Attorney
30 General shall approve the form and content of the disclosure
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1 statement supplied by the manufacturer.
2 (5) The manufacturer, dealer, lessor or transferor
3 applies for and receives the designation of a branded title
4 from the department.
5 (6) The department shall update its records and issue a
6 title with a designation indicating that the motor vehicle
7 was returned under the provisions of this act. The department
8 shall forward to subsequent purchasers, lessees or
9 transferees a certificate of title which indicates that the
10 vehicle was branded under the provisions of this act. The
11 department shall determine the exact form and content of the
12 title brand.
13 The provisions of this section apply to the resold, transferred
14 or leased motor vehicle for the full term of the warranty
15 required under this subsection. Failure of the manufacturer,
16 dealer, lessor or transferor to notify its immediate purchaser
17 of the requirements of this section subjects the manufacturer,
18 dealer, lessor or transferor to pay to the Commonwealth a civil
19 penalty of $2,000 per violation and, at the option of the
20 purchaser, to replace the motor vehicle with a comparable motor
21 vehicle of equal value or accept return of the vehicle from the
22 purchaser and refund to the purchaser the full purchase price,
23 including all collateral charges, less a reasonable allowance
24 for the purchaser's use of the vehicle not exceeding 10¢ per
25 mile driven or 10% of the purchase price of the vehicle,
26 whichever is less.
27 (b) Returned vehicles not to be resold.--Notwithstanding the
28 provisions of subsection (a), if a new motor vehicle has been
29 returned under the provisions of this act or a similar statute
30 of another state because of a nonconformity resulting in a
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1 complete failure of the braking or steering system of the motor
2 vehicle likely to cause death or serious bodily injury if the
3 vehicle was driven, the motor vehicle may not be resold in this
4 Commonwealth.
5 (c) Agreement waiving, limiting or disclaiming rights.--Any
6 agreement entered into by a purchaser that waives, limits or
7 disclaims the rights set forth in this act is void as contrary
8 to public policy. Where applicable, the rights set forth in this
9 act shall extend to a subsequent purchaser, lessee or transferee
10 of the motor vehicle.
11 SECTION 1. SECTIONS 2 AND 10 OF THE ACT OF MARCH 28, 1984 <--
12 (P.L.150, NO.28), KNOWN AS THE AUTOMOBILE LEMON LAW, AMENDED
13 DECEMBER 13, 2001 (P.L.868, NO.94), ARE AMENDED TO READ:
14 SECTION 2. DEFINITIONS.
15 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ACT SHALL
16 HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
17 CONTEXT CLEARLY INDICATES OTHERWISE:
18 "DEALER" OR "MOTOR VEHICLE DEALER." A PERSON IN THE BUSINESS
19 OF BUYING, SELLING, LEASING OR EXCHANGING VEHICLES.
20 "DEPARTMENT." THE DEPARTMENT OF TRANSPORTATION OF THE
21 COMMONWEALTH.
22 "MANUFACTURER." ANY PERSON ENGAGED IN THE BUSINESS OF
23 CONSTRUCTING OR ASSEMBLING NEW AND UNUSED MOTOR VEHICLES OR
24 ENGAGED IN THE BUSINESS OF IMPORTING NEW AND UNUSED MOTOR
25 VEHICLES INTO THE UNITED STATES FOR THE PURPOSE OF SELLING OR
26 DISTRIBUTING NEW AND UNUSED MOTOR VEHICLES TO MOTOR VEHICLE
27 DEALERS IN THIS COMMONWEALTH.
28 "MANUFACTURER'S EXPRESS WARRANTY" OR "WARRANTY." THE WRITTEN
29 WARRANTY OF THE MANUFACTURER OF A NEW AUTOMOBILE OF ITS
30 CONDITION AND FITNESS FOR USE, INCLUDING ANY TERMS OR CONDITIONS
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1 PRECEDENT TO THE ENFORCEMENT OF OBLIGATIONS UNDER THE WARRANTY.
2 "NEW MOTOR VEHICLE." ANY NEW AND UNUSED SELF-PROPELLED,
3 MOTORIZED CONVEYANCE DRIVEN UPON PUBLIC ROADS, STREETS OR
4 HIGHWAYS WHICH IS DESIGNED TO TRANSPORT NOT MORE THAN 15
5 PERSONS, WHICH WAS PURCHASED OR LEASED AND IS REGISTERED IN THE
6 COMMONWEALTH OR PURCHASED OR LEASED ELSEWHERE AND REGISTERED FOR
7 THE FIRST TIME IN THE COMMONWEALTH AND IS USED, LEASED OR BOUGHT
8 FOR USE PRIMARILY FOR PERSONAL, FAMILY OR HOUSEHOLD PURPOSES,
9 INCLUDING A VEHICLE USED BY A MANUFACTURER OR DEALER AS A
10 DEMONSTRATOR OR DEALER CAR PRIOR TO ITS SALE. THE TERM DOES NOT
11 INCLUDE MOTORCYCLES, MOTOR HOMES OR OFF-ROAD VEHICLES.
12 "NONCONFORMITY." A DEFECT OR CONDITION WHICH SUBSTANTIALLY
13 IMPAIRS THE USE, VALUE OR SAFETY OF A NEW MOTOR VEHICLE AND DOES
14 NOT CONFORM TO THE MANUFACTURER'S EXPRESS WARRANTY.
15 "PURCHASER." A PERSON, OR HIS SUCCESSORS OR ASSIGNS, WHO HAS
16 OBTAINED POSSESSION OR OWNERSHIP OF A NEW MOTOR VEHICLE BY
17 LEASE, TRANSFER OR PURCHASE OR WHO HAS ENTERED INTO AN AGREEMENT
18 OR CONTRACT FOR THE LEASE OR PURCHASE OF A NEW MOTOR VEHICLE
19 WHICH IS USED, LEASED OR BOUGHT FOR USE PRIMARILY FOR PERSONAL,
20 FAMILY OR HOUSEHOLD PURPOSES.
21 SECTION 10. RESALE OF RETURNED MOTOR VEHICLE.
22 (A) VEHICLES MAY NOT BE RESOLD, TRANSFERRED OR LEASED AT
23 RETAIL OR WHOLESALE.--IF A MOTOR VEHICLE HAS BEEN [RETURNED]
24 REPURCHASED UNDER THE PROVISIONS OF THIS ACT OR A SIMILAR
25 STATUTE OF ANOTHER STATE, IT MAY NOT BE RESOLD, TRANSFERRED OR
26 LEASED IN THIS STATE UNLESS:
27 (1) THE MANUFACTURER PROVIDES THE SAME EXPRESS WARRANTY
28 IT PROVIDED TO THE ORIGINAL PURCHASER, EXCEPT THAT THE TERM
29 OF THE WARRANTY NEED ONLY LAST FOR 12,000 MILES OR 12 MONTHS
30 AFTER THE DATE OF RESALE, TRANSFER OR LEASE WHICHEVER IS
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1 EARLIER.
2 (2) THE MANUFACTURER PROVIDES THE [CONSUMER] PURCHASER,
3 LESSEE OR TRANSFEREE WITH A WRITTEN STATEMENT ON A SEPARATE
4 PIECE OF PAPER, IN TEN POINT ALL CAPITAL TYPE, IN
5 SUBSTANTIALLY THE FOLLOWING FORM:
6 "IMPORTANT: THIS VEHICLE WAS [RETURNED TO] REPURCHASED BY
7 THE MANUFACTURER BECAUSE IT DID NOT CONFORM TO THE
8 MANUFACTURER'S EXPRESS WARRANTY AND THE NONCONFORMITY WAS
9 NOT CURED WITHIN A REASONABLE TIME AS PROVIDED BY
10 PENNSYLVANIA LAW."
11 (3) THE MOTOR VEHICLE DEALER, LESSOR OR TRANSFEROR
12 CLEARLY AND CONSPICUOUSLY DISCLOSES THE MANUFACTURER'S
13 WRITTEN NOTIFICATION PRIOR TO THE RESALE OR LEASE OF THE
14 REPURCHASED MOTOR VEHICLE.
15 (4) THE MOTOR VEHICLE DEALER, LESSOR OR TRANSFEROR
16 OBTAINS A SIGNED RECEIPT CERTIFYING, IN A CONSPICUOUS AND
17 UNDERSTANDABLE MANNER, THAT THE WRITTEN STATEMENT REQUIRED
18 UNDER THIS SUBSECTION HAS BEEN PROVIDED. ACCESS TO THE
19 RECEIPT SHALL BE MAINTAINED FOR FOUR YEARS. THE ATTORNEY
20 GENERAL SHALL APPROVE THE FORM AND CONTENT OF THE DISCLOSURE
21 STATEMENT SUPPLIED BY THE MANUFACTURER.
22 (5) THE MANUFACTURER, DEALER, LESSOR OR TRANSFEROR
23 APPLIES FOR AND RECEIVES THE DESIGNATION OF A BRANDED TITLE
24 FROM THE DEPARTMENT.
25 (6) THE DEPARTMENT SHALL UPDATE ITS RECORDS AND ISSUE A
26 TITLE WITH A DESIGNATION INDICATING THAT THE MOTOR VEHICLE
27 WAS RETURNED REPURCHASED UNDER THE PROVISIONS OF THIS ACT. <--
28 THE DEPARTMENT SHALL FORWARD TO SUBSEQUENT PURCHASERS,
29 LESSEES OR TRANSFEREES A CERTIFICATE OF TITLE WHICH INDICATES
30 THAT THE VEHICLE WAS BRANDED UNDER THE PROVISIONS OF THIS
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1 ACT. THE DEPARTMENT SHALL DETERMINE THE EXACT FORM AND
2 CONTENT OF THE TITLE BRAND.
3 THE PROVISIONS OF THIS SECTION APPLY TO THE RESOLD, TRANSFERRED
4 OR LEASED MOTOR VEHICLE FOR THE FULL TERM OF THE WARRANTY
5 REQUIRED UNDER THIS SUBSECTION. FAILURE OF THE MANUFACTURER,
6 DEALER, LESSOR OR TRANSFEROR TO NOTIFY ITS IMMEDIATE PURCHASER
7 OF THE REQUIREMENTS OF THIS SECTION SUBJECTS THE MANUFACTURER,
8 DEALER, LESSOR OR TRANSFEROR TO PAY TO THE COMMONWEALTH A CIVIL
9 PENALTY OF $2,000 PER VIOLATION AND, AT THE OPTION OF THE
10 PURCHASER, TO REPLACE THE MOTOR VEHICLE WITH A COMPARABLE MOTOR
11 VEHICLE OF EQUAL VALUE OR ACCEPT RETURN OF THE VEHICLE FROM THE
12 PURCHASER AND REFUND TO THE PURCHASER THE FULL PURCHASE PRICE,
13 INCLUDING ALL COLLATERAL CHARGES, LESS A REASONABLE ALLOWANCE
14 FOR THE PURCHASER'S USE OF THE VEHICLE NOT EXCEEDING 10¢ PER
15 MILE DRIVEN OR 10% OF THE PURCHASE PRICE OF THE VEHICLE,
16 WHICHEVER IS LESS.
17 (B) RETURNED VEHICLES NOT TO BE RESOLD.--NOTWITHSTANDING THE
18 PROVISIONS OF SUBSECTION (A), IF A NEW MOTOR VEHICLE HAS BEEN
19 RETURNED UNDER THE PROVISIONS OF THIS ACT OR A SIMILAR STATUTE
20 OF ANOTHER STATE BECAUSE OF A NONCONFORMITY RESULTING IN A
21 COMPLETE FAILURE OF THE BRAKING OR STEERING SYSTEM OF THE MOTOR
22 VEHICLE LIKELY TO CAUSE DEATH OR SERIOUS BODILY INJURY IF THE
23 VEHICLE WAS DRIVEN, THE MOTOR VEHICLE MAY NOT BE RESOLD IN THIS
24 COMMONWEALTH.
25 (C) AGREEMENT WAIVING, LIMITING OR DISCLAIMING RIGHTS.--ANY
26 AGREEMENT ENTERED INTO BY A PURCHASER THAT WAIVES, LIMITS OR
27 DISCLAIMS THE RIGHTS SET FORTH IN THIS ACT IS VOID AS CONTRARY
28 TO PUBLIC POLICY. WHERE APPLICABLE, THE RIGHTS SET FORTH IN THIS
29 ACT SHALL EXTEND TO A SUBSEQUENT PURCHASER, LESSEE OR TRANSFEREE
30 OF THE MOTOR VEHICLE.
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1 Section 3 2. The amendments of this act shall apply to the <--
2 purchase or lease of a new motor vehicle on or after the
3 effective date of this amendatory act.
4 Section 4 3. This act shall take effect in 60 days. <--
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