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                                                      PRINTER'S NO. 2226

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1817 Session of 1999


        INTRODUCED BY ROONEY, GEORGE, SCHULER, WILT, BELARDI, MASLAND,
           PISTELLA, SOLOBAY, SHANER, BELFANTI, READSHAW, CORRIGAN,
           FREEMAN, DALEY, PETRARCA, LAUGHLIN, GRUCELA, WALKO,
           WOJNAROSKI, SEYFERT, STABACK, McCALL, BISHOP, JOSEPHS,
           SERAFINI, TRELLO, MELIO, YOUNGBLOOD, HARHAI, TRAVAGLIO AND
           RAMOS, AUGUST 30, 1999

        REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, AUGUST 30, 1999

                                     AN ACT

     1  Providing for rights of purchasers of defective computer
     2     devices, for protection from warranty abuses and effective
     3     warranty repairs; imposing certain recordkeeping
     4     requirements; and establishing a right of action.

     5     The General Assembly of the Commonwealth of Pennsylvania
     6  hereby enacts as follows:
     7  Section 1.  Short title.
     8     This act shall be known and may be cited as the Computer
     9  Lemon Law.
    10  Section 2.  Definitions.
    11     The following words and phrases when used in this act shall
    12  have the meanings given to them in this section unless the
    13  context clearly indicates otherwise:
    14     "Brand new computer."  A computer device which is recently
    15  assembled, unused and contains no reconditioned parts.
    16     "Computer device."  A central processing unit or terminal
    17  display screen, including all circuitry and connective devices,

     1  a printer, modem, scanner or other device used with a computer
     2  or any programming for a computer, whether preinstalled or
     3  purchased separately.
     4     "Date of sale or lease."  The date when a computer device is
     5  first delivered to a purchaser.
     6     "Manufacturer."  A person or for-profit entity engaged in the
     7  business of manufacturing or assembling computers or computer
     8  software or accessories.
     9     "Nonconformity."  A defect, condition or malfunction which
    10  impairs the use of a computer device or causes it to operate in
    11  a manner not intended.
    12     "Notice."  The means by which a purchaser advises a
    13  manufacturer of a nonconformity, whether transmitted by any of
    14  the following: certified mail, registered mail, return receipt
    15  requested, facsimile transmission, electronic, e-mail or any
    16  means provided for in the manufacturer's warranty or service
    17  materials.
    18     "Purchaser."  A person who is a resident or temporary
    19  resident of this Commonwealth or business entity that has fewer
    20  than 30 personal computers acting either in concert with a
    21  network or as stand-alone machines and who obtains a computer
    22  device by lease, retail sale, Internet sale, gift, special
    23  contract or other transaction, whether delivered or currently
    24  located in this Commonwealth.
    25  Section 3.  Notice to purchaser.
    26     (a)  Statement of purchaser's rights.--A purchaser shall be
    27  provided at the time of sale or lease with an accurate statement
    28  of the purchaser's rights established by this act in 14-point
    29  boldface type. The manufacturer shall secure from the purchaser
    30  a signed acknowledgment that the rights have been explained and
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     1  are understood. Unless a signed acknowledgment of rights is
     2  secured, the time limits specified in section 4 shall be tolled.
     3     (b)  Disclosure of programs.--At the time of sale, the
     4  manufacturer of a computer device must conspicuously disclose
     5  the name of all software programs and or combinations of
     6  programs, by version number, which will cause or may be likely
     7  to cause, operating problems with the device. It shall be the
     8  burden of the manufacturer to prove in any claim brought under
     9  this act that such disclosure was made.
    10  Section 4.  Coverage and coverage period.
    11     (a)  Right to repair.--A purchaser of a computer device shall
    12  be entitled to effective repairs by the manufacturer for any
    13  nonconformity which shall arise during the first 24 months of
    14  use, at no cost to the purchaser, except that if the
    15  manufacturer has issued a warranty or service contract, the
    16  coverage period shall be the greater of the term specified in
    17  the warranty or service contract or 24 months from the date of
    18  purchase.
    19     (b)  Manufacturer duty to repair.--
    20         (1)  Within five business days after receiving notice
    21     from a purchaser of a nonconformity, plus reasonable time for
    22     shipping of not more than three business days, the
    23     manufacturer shall repair any computer device and return it
    24     to the purchaser as follows:
    25             (i)  If onsite service is provided for in the
    26         warranty, repairs shall be made at the purchaser's
    27         location without charge.
    28             (ii)  If onsite service is not specified in the
    29         warranty, the manufacturer shall arrange and pay for the
    30         cost of shipping from the purchaser's location.
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     1             (iii)  A purchaser who at the manufacturer's
     2         direction conducts diagnostic, troubleshooting or
     3         attempted repairs, including, but not limited to, partial
     4         disassembly, shall for the purposes of this act be
     5         considered the same as if the repairs were attempted by
     6         the manufacturer itself.
     7             (iv)  All repairs shall be guaranteed by the
     8         manufacturer for a term of two years.
     9     (c)  Second opportunity for repair.--If the repair is
    10  ineffective, the manufacturer shall, upon notice from the
    11  consumer, have a second opportunity to make an effective repair
    12  at the purchaser's physical location, provided that the repair
    13  is completed within three business days. The purchaser shall not
    14  be required to ship the unit back to the manufacturer for the
    15  final repair opportunity regardless of the manufacturer's
    16  willingness to pay for the cost of same.
    17     (d)  Right to refund.--
    18         (1)  If the second repair is ineffective or if the
    19     manufacturer fails to timely respond to the purchaser as
    20     required under this section, the purchaser may elect:
    21             (i)  a refund of the full purchase price paid at the
    22         time of sale or the full value of the lease, as the case
    23         may be, plus finance and collateral charges; or
    24             (ii)  delivery of a brand new computer device from
    25         the manufacturer, of equal or greater value than the
    26         original price paid at the time of acquisition, without
    27         charge or offset for use.
    28         (2)  If more than one nonconformity has been subject to
    29     repair, no second repair attempt shall be required before
    30     seeking the remedies provided in this act.
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     1     (e)  Return of unrepaired computer device.--A manufacturer
     2  may, at its discretion, request return of the unrepaired
     3  computer device at cost, if the manufacturer has replaced the
     4  unit or refunded the purchase price.
     5     (f)  Resale prohibited.--No computer device returned under
     6  this section may be resold in this Commonwealth. A violation of
     7  this subsection shall be a violation of the act of December 17,
     8  1968 (P.L.1224, No.387), known as the Unfair Trade Practices and
     9  Consumer Protection Law, entitling any subsequent purchaser to
    10  treble the purchase price paid by that purchaser.
    11     (g)  Breach of warranty.--Notwithstanding subsections (e) and
    12  (f), a manufacturer who refuses to honor the terms of any
    13  warranty booklet or materials delivered to the purchaser at,
    14  prior to or after the delivery of the computer device shall be
    15  in violation of the Unfair Trade Practices and Consumer
    16  Protection Law, entitling the purchaser to treble the purchase
    17  price paid for the device.
    18  Section 5.  Recordkeeping.
    19     A manufacturer shall retain records of all contacts,
    20  communications, notice transmissions or customer service
    21  dialogues between itself and a purchaser and shall maintain a
    22  list, by serial number, of all refunds or replacements made
    23  pursuant to this act. Copies shall be made available to the
    24  purchaser upon demand, regardless of whether the manufacturer
    25  utilizes the services of a third party to manage purchaser
    26  claims. Failure to comply with this section shall be a violation
    27  of the act of December 17, 1968 (P.L.1224, No.387), known as the
    28  Unfair Trade Practices and Consumer Protection Law, entitling
    29  the purchaser to treble the purchase price paid for the device.
    30  Section 6.  Civil actions.
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     1     (a)  Right of action.--If the manufacturer of a computer
     2  device violates any provision of this act, the purchaser may
     3  initiate an action to recover as damages any and all remedies
     4  specified in section 4.
     5     (b)  Additional award.--In addition to refund or replacement
     6  of the computer device under section 4, a prevailing purchaser
     7  shall be entitled to the following:
     8         (1)  $1,500, if judgment is obtained from a district
     9     justice or municipal court judge;
    10         (2)  $3,000, if judgment is obtained from a common pleas
    11     court panel of arbitration; or
    12         (3)  $6,000, if judgment is obtained from a common pleas
    13     court.
    14     (c)  Corporate witness.--If a purchaser initiates an action
    15  in this Commonwealth for a violation of this act, the
    16  manufacturer shall produce at each and every court proceeding in
    17  such action a corporate representative who shall be fully aware
    18  of the facts and circumstances of the case and have available
    19  for the court's review a copy of all data generated under the
    20  provisions of this section.
    21  Section 7.  Attorney fees.
    22     If a purchaser prevails in a claim under this act, the
    23  manufacturer shall pay the purchaser's reasonable attorney fees,
    24  costs and expert expenses in resolving and, if necessary,
    25  litigating an action under section 6, regardless of the cost of
    26  the computer device.
    27  Section 8.  Prohibited defenses.
    28     It shall not be a defense under this act that a nonconformity
    29  was caused by a software programming problem:
    30         (1)  If the software was preinstalled by the
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     1     manufacturer.
     2         (2)  Unless the manufacturer produces an expert witness
     3     at the proceedings who examined the computer device and can
     4     specify the exact cause and correction of the problem.
     5         (3)  Unless the manufacturer has strictly complied with
     6     the notice provisions of section 3(b).
     7  Section 9.  Expert witness.
     8     A purchaser who seeks relief under this act shall not be
     9  required to retain the opinion of an expert to prevail against a
    10  manufacturer under any circumstances.
    11  Section 10.  Application of Unfair Trade Practices and Consumer
    12                 Protection Law.
    13     A violation of any provision of this act shall also be a
    14  violation of the act of December 17, 1968 (P.L.1224, No.387),
    15  known as the Unfair Trade Practices and Consumer Protection Law.
    16  Section 11.  Rights preserved.
    17     Nothing in this act shall limit the purchaser from pursuing
    18  any other rights or remedies under any other law, contract or
    19  warranty.
    20  Section 12.  Nonwaiver of act.
    21     The provisions of this act may not be waived by a purchaser.
    22  Section 13.  Applicability.
    23     This act shall apply to all computer devices purchased,
    24  leased or delivered to a purchaser after the effective date of
    25  this act.
    26  Section 14.  Effective date.
    27     This act shall take effect in 60 days.


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