PRINTER'S NO. 2226
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 19990H1817B2226 - 2 -
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. 19990H1817B2226 - 3 -
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. 19990H1817B2226 - 4 -
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. 19990H1817B2226 - 5 -
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 19990H1817B2226 - 6 -
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. H19L12DMS/19990H1817B2226 - 7 -