PRIOR PRINTER'S NO. 688 PRINTER'S NO. 2010
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
AS REPORTED FROM COMMITTEE ON CONSUMER AFFAIRS, HOUSE OF
REPRESENTATIVES, AS AMENDED, JUNE 10, 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 "DAMAGE." ANY PHYSICAL HARM SUSTAINED OR INCURRED BY A <--
13 VEHICLE, WHETHER OR NOT REPAIRED OR REPLACED.
14 "New motor vehicle." A vehicle, regardless of mileage, which
15 has never been registered or titled TO AN ULTIMATE PURCHASER in <--
16 this Commonwealth or any other state or jurisdiction on which a <--
17 tax imposed under Article II 43 of the act of March 4, 1971
1 (P.L.6, No.2), known as the Tax Reform Code of 1971, has been
2 paid prior to its sale. OR WHICH HAS NOT BEEN SOLD, BARGAINED, <--
3 EXCHANGED OR GIVEN AWAY TO AN ULTIMATE PURCHASER. A TRANSFER
4 BETWEEN DEALERS FOR THE PURPOSE OF RESALE SHALL NOT BE
5 CONSIDERED AS A TRANSFER TO AN ULTIMATE PURCHASER.
6 Section 3. New motor vehicle damage disclosure.
7 (a) Notice to purchaser.--The selling vehicle dealer shall
8 notify the purchaser of a new vehicle in writing at the time of
9 sale of any damage or damage repairs incurred by the new
10 vehicle, REGARDLESS OF WHETHER OR NOT THE DAMAGED PORTION WAS <--
11 REPAIRED OR REPLACED, which exceeds the greater of $500 or 3% of
12 the manufacturer's suggested retail price. Damage exceeding the
13 disclosure amount shall be disclosed by the vehicle dealer when:
14 (1) the manufacturer or its agent, in accordance with
15 the act of December 22, 1983 (P.L.306, No.84), known as the
16 Board of Vehicles Act, discloses that, at any time after the
17 manufacturing process is complete, damage occurred or damage
18 repairs were made; or <--
19 (2) the vehicle dealer knows or should know based on
20 facts indicating that other damage or damage repair exists in
21 addition to the damage or repairs required to be disclosed
22 under paragraph (1); OR <--
23 (3) THE COMBINED TOTAL OF DAMAGE OR DAMAGE REPAIRS MADE
24 UNDER PARAGRAPHS (1) AND (2) EXCEEDS THE GREATER OF $500 OR
25 3% OF THE MANUFACTURER'S SUGGESTED RETAIL PRICE.
26 A vehicle dealer shall not misrepresent or mislead a purchaser
27 if the purchaser inquires about the existence of damage or
28 damage repairs made.
29 (b) Damage repair cost calculation.--In determining whether
30 damage disclosure is required, repair costs shall be calculated
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1 at the vehicle dealer's retail charge on the date the repairs
2 were made for:
3 (1) Parts., which shall only be replaced with new, <--
4 original equipment manufacturer parts.
5 (2) Labor multiplied by the time taken to make the
6 repairs as established by a time allowance from a repair
7 manual utilized by the dealer.
8 ALL PARTS SHALL BE REPLACED ONLY WITH NEW, ORIGINAL EQUIPMENT <--
9 MANUFACTURER PARTS. Replacement of any permanently sealed-glass
10 window shall be disclosed to the purchaser regardless of the
11 cost of the replacement window. The value of any permanently
12 sealed-glass window replacement shall not be included in the
13 calculation process to determine whether damage disclosure is
14 required under this act. The value of any portion of a motor
15 home designed, used or maintained primarily for human habitation
16 shall not be included in the calculation process to determine
17 whether damage disclosure is required under this act.
18 (c) Form for damage disclosure notice.--If damage disclosure
19 to the purchaser is required under this act, the purchaser at
20 the time of sale shall be provided with a fully completed copy
21 of a damage disclosure form which shows the date of the
22 disclosure, contains AND the name and address of the seller and, <--
23 INDICATES WHETHER ANY MANUFACTURER'S WARRANTY APPLICABLE TO THE
24 VEHICLE IS AFFECTED BY THE DAMAGE OR DAMAGE REPAIRS AND WHETHER
25 THE DAMAGE OR DAMAGE REPAIRS ARE COVERED BY ANY MANUFACTURER'S
26 WARRANTY AND CONTAINS in immediate proximity to the space
27 provided for the signature of the purchaser in boldface type of
28 a minimum size of ten points, a statement in substantially the
29 following form:
30 New Vehicle Damage Disclosure Notice
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1 In accordance with the Commonwealth of Pennsylvania's New Motor
2 Vehicle Damage Disclosure Act and in connection with the
3 purchase from __________________ (Dealer) of the motor
4 vehicle described
5 as follows:
6 Year____Make___________________Type___________________
7 Serial No._____________________Stock No.______________
8 I/we the undersigned, hereby acknowledge that Dealer
9 has disclosed to me/us before I/we agreed to purchase
10 the above listed vehicle that the vehicle has been
11 subjected to postmanufacturing damage as follows:
12 Damage Description: __________________________________
13 ______________________________________________________
14 ______________________________________________________
15 ______________________________________________________
16 ______________________________________________________
17 ______________________________________________________
18 The above disclosed damage or repaired damage is:
19 ( ) covered ( ) not covered (check one)
20 by the manufacturer's warranty.
21 THE ABOVE DISCLOSED DAMAGE OR REPAIRED DAMAGE HAS <--
22 (CHECK ONE):
23 ( ) NO EFFECT ON THE MANUFACTURER'S WARRANTY
24 ( ) THE FOLLOWING EFFECT ON THE MANUFACTURER'S WARRANTY
25 (SPECIFY) ____________________________________________
26 ______________________________________________________
27 I/we further acknowledge that the listed damage has
28 been repaired to my/our satisfaction.
29 Date: ________
30 ______________________ __________________________
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1 Signature of Purchaser Signature of Co-Purchaser
2 ______________________ __________________________
3 Printed Name Printed Name
4 __________________________________
5 Signature of Dealer Representative
6 Section 4. No rescission of sale.
7 If disclosure is not required under this act, a purchaser may
8 not revoke or rescind a sales contract and is not entitled to
9 other damages or relief under section 7 8 due solely to the fact <--
10 that the vehicle was damaged and repaired prior to the sale.
11 Section 5. Automobile Lemon Law OTHER STATUTORY rights <--
12 reserved.
13 Nothing in this act shall limit the purchaser from pursuing <--
14 DIMINISH any other rights or remedies WHICH THE PURCHASER HAS <--
15 under the act of March 28, 1984 (P.L.150, No.28), known as the
16 Automobile Lemon Law, AS AMENDED, REENACTED OR SUPERSEDED. IF <--
17 DAMAGE IS NOT REQUIRED TO BE DISCLOSED UNDER THIS ACT, NOTHING
18 IN THIS ACT SHALL DIMINISH ANY RIGHTS OR REMEDIES WHICH THE
19 PURCHASER HAS FOR THAT DAMAGE UNDER 13 PA.C.S. (RELATING TO
20 COMMERCIAL CODE).
21 Section 6. Board of Vehicles Act inapplicable.
22 The provisions SECTION 10(B) of the act of December 22, 1983 <--
23 (P.L.306, No.84), known as the Board of Vehicles Act, shall not
24 apply and is superseded by this act. only with regard to a <--
25 dealer's obligation to disclose vehicle damage to a purchaser.
26 Section 7. Exemption.
27 The provisions of this act shall not apply to manufacturers,
28 distributors or dealers of manufactured housing, or
29 manufacturers, distributors or dealers of motorcycles.
30 Section 8. Application of Consumer Protection Law.
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1 A violation of this ACT shall constitute a violation under <--
2 the act of December 17, 1968 (P.L.1224, No.387), known as the
3 Unfair Trade Practices and Consumer Protection Law, and shall be
4 subject to the enforcement provisions and private rights of
5 action contained in that act. A court may provide for rescission <--
6 of the sale under a private right action, if a violation of this
7 act is found.
8 Section 9. Effective date.
9 This act shall take effect in 60 days.
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