SENATE AMENDED
        PRIOR PRINTER'S NOS. 1710, 1882, 1971,        PRINTER'S NO. 2394
        2038

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1405 Session of 1983


        INTRODUCED BY LAUGHLIN, KUKOVICH, MANDERINO, F. E. TAYLOR,
           BURNS, GEORGE, STUBAN, WAMBACH, DOMBROWSKI, FEE, MISCEVICH,
           PRATT, ALDERETTE, FREEMAN, STEIGHNER, JAROLIN, McHALE,
           AFFLERBACH, WOZNIAK, VAN HORNE, DeLUCA, DURHAM AND BROUJOS,
           SEPTEMBER 19, 1983

        SENATOR BELL, CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
           JANUARY 23, 1984

                                     AN ACT

     1  Relating to the rights of purchasers of defective new motor
     2     vehicles.

     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 Automobile
     7  Lemon Law.
     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     "Dealer" or "motor vehicle dealer."  A person in the business
    13  of buying, selling or exchanging vehicles.
    14     "Manufacturer."  Any person engaged in the business of
    15  constructing or assembling new and unused motor vehicles or

     1  engaged in the business of importing new and unused motor
     2  vehicles into the United States for the purpose of selling or
     3  distributing new and unused motor vehicles to motor vehicle
     4  dealers in this Commonwealth.
     5     "Manufacturer's express warranty" or "warranty."  The written
     6  warranty of the manufacturer of a new automobile of its
     7  condition and fitness for use, including any terms or conditions
     8  precedent to the enforcement of obligations under the warranty.
     9     "New motor vehicle."  Any new and unused self-propelled,
    10  motorized conveyance driven upon public roads, streets or
    11  highways which is designed to transport not more than 15
    12  persons, which was purchased and is registered in the
    13  Commonwealth and is used or bought for use primarily for
    14  personal, family or household purposes, including a vehicle used
    15  by a manufacturer or dealer as a demonstrator or dealer car
    16  prior to its sale. The term does not include motorcycles, motor
    17  homes or off-road vehicles.
    18     "Nonconformity."  A defect or condition which substantially
    19  impairs the use, value or safety of a new motor vehicle and does
    20  not conform to the manufacturer's express warranty.
    21     "Purchaser."  A person or his successors or assigns who has
    22  obtained ownership of a new motor vehicle by transfer or
    23  purchase or who has entered into an agreement or contract for
    24  the purchase of a new motor vehicle which is used or bought for
    25  use primarily for personal, family or household purposes.
    26  Section 3.  Disclosure.
    27     The Attorney General shall prepare and publish in the
    28  Pennsylvania Bulletin a statement which explains a purchaser's
    29  rights under this law. Manufacturers shall provide to each
    30  purchaser at the time of original purchase of a new motor
    19830H1405B2394                  - 2 -

     1  vehicle a written statement containing a copy of the Attorney
     2  General's statement and a listing of zone offices, with
     3  addresses and phone numbers, which can be contacted by the
     4  purchaser for the purpose of securing the remedies provided for
     5  in this act.
     6  Section 4.  Repair obligations.
     7     (a)  Repairs required.--The manufacturer of a new motor
     8  vehicle sold and registered in the Commonwealth shall repair or
     9  correct, at no cost to the purchaser, a nonconformity which
    10  substantially impairs the use, value or safety of said motor
    11  vehicle which may occur within a period of one year following
    12  the actual delivery of the vehicle to the purchaser, within the
    13  first 12,000 miles of use, or during the term of the warranty,
    14  whichever may first occur.
    15     (b)  Delivery of vehicle.--It shall be the duty of the
    16  purchaser to deliver the nonconforming vehicle to the
    17  manufacturer's authorized service and repair facility within the
    18  Commonwealth, unless, due to reasons of size and weight or
    19  method of attachment or method of installation or nature of the
    20  nonconformity, such delivery cannot reasonably be accomplished.
    21  Should the purchaser be unable to effect return of the
    22  nonconforming vehicle, he shall notify the manufacturer or its
    23  authorized service and repair facility. Written notice of
    24  nonconformity to the manufacturer or its authorized service and
    25  repair facility shall constitute return of the vehicle when
    26  purchaser is unable to return the vehicle due to the
    27  nonconformity. Upon receipt of such notice of nonconformity the
    28  manufacturer shall, at its option, service or repair the vehicle
    29  at the location of nonconformity, or pick up the vehicle for
    30  service and repair or arrange for transporting the vehicle to
    19830H1405B2394                  - 3 -

     1  its authorized service and repair facility. All costs of
     2  transporting the vehicle when purchaser is unable to effect
     3  return, due to nonconformity, shall be at the manufacturer's
     4  expense.
     5  Section 5.  Manufacturer's duty for refund or replacement.
     6     (a)  Return of automobile.--If the manufacturer fails to       <--
     7  repair or correct a nonconformity after a reasonable number of
     8  attempts, the manufacturer shall, at the option of the
     9  purchaser, replace the motor vehicle with a new COMPARABLE motor  <--
    10  vehicle of equal value or accept return of the vehicle from the
    11  purchaser and refund to the purchaser the full purchase price,
    12  including all collateral charges, less a reasonable allowance
    13  for the purchaser's use of the vehicle NOT EXCEEDING 10¢ PER      <--
    14  MILE DRIVEN OR 10% OF THE PURCHASE PRICE OF THE VEHICLE,
    15  WHICHEVER IS LESS. Refunds shall be made to the purchaser and
    16  lienholder, if any, as their interests may appear. A reasonable
    17  allowance for use shall be that amount directly attributable to
    18  use by the purchaser prior to his first report of the
    19  nonconformity to the manufacturer. In the event the consumer
    20  elects a refund, payment shall be made within 30 days of such
    21  election. A consumer shall not be entitled to a refund or
    22  replacement if the nonconformity does not substantially impair
    23  the use, value, or safety of the vehicle or the nonconformity is
    24  the result of abuse, neglect or modification or alteration of
    25  the motor vehicle by the purchaser.
    26     (b)  Notation on title.--When an automobile is returned to     <--
    27  the manufacturer under subsection (a), a notation shall be
    28  placed on the title of the automobile which states: "This
    29  automobile was returned to the manufacturer under this section
    30  of the Automobile Purchasers' Protection Act."
    19830H1405B2394                  - 4 -

     1  Section 6.  Presumption of a reasonable number of attempts.
     2     It shall be presumed that a reasonable number of attempts
     3  have been undertaken to repair or correct a nonconformity if:
     4         (1)  the same nonconformity has been subject to repair
     5     three times by the manufacturer, its agents or authorized
     6     dealers and the nonconformity still exists; or
     7         (2)  the vehicle is out-of-service by reason of any
     8     nonconformity for a cumulative total of 30 or more calendar
     9     days.
    10  Section 7.  Itemized statement required.
    11     The manufacturer or dealer shall provide to the purchaser
    12  each time the purchaser's vehicle is returned from being
    13  serviced or repaired a fully itemized statement indicating all
    14  work performed on said vehicle including, but not limited to,
    15  parts and labor. It shall be the duty of a dealer to notify the
    16  manufacturer of the existence of a nonconformity within seven
    17  days of the delivery by a purchaser of a vehicle subject to a
    18  nonconformity. The notification shall be by certified mail,
    19  return receipt requested.
    20  Section 8.  Civil cause of action.
    21     Any purchaser of a new motor vehicle who suffers any loss due
    22  to nonconformity of such vehicle as a result of the
    23  manufacturer's failure to comply with this act may bring a civil
    24  action in a court of common pleas and, in addition to other
    25  relief, shall be entitled to recover reasonable attorneys' fees
    26  and all court costs.
    27  Section 9.  Informal dispute settlement procedure.
    28     If the manufacturer has established an informal dispute
    29  settlement procedure which complies with the provisions of 16
    30  CFR Pt. 703, as from time to time amended, the provisions of
    19830H1405B2394                  - 5 -

     1  section 8 (relating to civil cause of action) shall not apply to
     2  any purchaser who has not first resorted to such procedure as it
     3  relates to a remedy for defects or conditions affecting the
     4  substantial use, value or safety of the vehicle. The informal
     5  dispute settlement procedure shall not be binding on the
     6  purchaser and, in lieu of such settlement, the purchaser may
     7  pursue a remedy under section 8.
     8  SECTION 10.  RESALE OF RETURNED MOTOR VEHICLE.                    <--
     9     (A)  VEHICLES MAY NOT BE RESOLD.--IF A MOTOR VEHICLE HAS BEEN
    10  RETURNED UNDER THE PROVISIONS OF THIS ACT OR A SIMILAR STATUTE
    11  OF ANOTHER STATE, IT MAY NOT BE RESOLD IN THIS STATE UNLESS:
    12         (1)  THE MANUFACTURER PROVIDES THE SAME EXPRESS WARRANTY
    13     IT PROVIDED TO THE ORIGINAL PURCHASER, EXCEPT THAT THE TERM
    14     OF THE WARRANTY NEED ONLY LAST FOR 12,000 MILES OR 12 MONTHS
    15     AFTER THE DATE OF RESALE, WHICHEVER IS EARLIER.
    16         (2)  THE MANUFACTURER PROVIDES THE CONSUMER WITH A
    17     WRITTEN STATEMENT ON A SEPARATE PIECE OF PAPER, IN TEN POINT
    18     ALL CAPITAL TYPE, IN SUBSTANTIALLY THE FOLLOWING FORM:
    19         "IMPORTANT:  THIS VEHICLE WAS RETURNED TO THE
    20         MANUFACTURER BECAUSE IT DID NOT CONFORM TO THE
    21         MANUFACTURER'S EXPRESS WARRANTY AND THE NONCONFORMITY WAS
    22         NOT CURED WITHIN A REASONABLE TIME AS PROVIDED BY
    23         PENNSYLVANIA LAW."
    24  THE PROVISIONS OF THIS SECTION APPLY TO THE RESOLD MOTOR VEHICLE
    25  FOR THE FULL TERM OF THE WARRANTY REQUIRED UNDER THIS
    26  SUBSECTION.
    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
    19830H1405B2394                  - 6 -

     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  Section 10 11.  Application of unfair trade act.                  <--
     6     A violation of this act shall also be a violation of the act
     7  of December 17, 1968 (P.L.1224, No.387), known as the Unfair
     8  Trade Practices and Consumer Protection Law.
     9  Section 11 12.  Rights preserved.                                 <--
    10     Nothing in this act shall limit the purchaser from pursuing
    11  any other rights or remedies under any other law, contract or
    12  warranty.
    13  Section 12 13.  Nonwaiver of act.                                 <--
    14     The provisions of this act shall not be waived.
    15  Section 13 14.  Effective date.                                   <--
    16     This act shall take effect in 60 days and shall apply to new
    17  motor vehicles purchased after the effective date of this act.









    F24L12JS/19830H1405B2394         - 7 -