PRINTER'S NO. 492
No. 438 Session of 1985
INTRODUCED BY DeLUCA, TRELLO, MAYERNIK, J. L. WRIGHT, KOSINSKI,
COHEN, DURHAM, MRKONIC, HALUSKA, LINTON, TIGUE, DAWIDA,
DALEY, PERZEL, KUKOVICH, CIVERA, CORNELL, ARTY, LASHINGER,
NAHILL, FREEMAN, COLAFELLA, CARN, PISTELLA, PETRONE,
LEVDANSKY AND COWELL, FEBRUARY 26, 1985
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, FEBRUARY 26, 1985
AN ACT
1 Relating to the rights of purchasers of defective used 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 Used Motor
7 Vehicle 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 "Consumer." The purchaser, other than for purposes of
13 resale, of a used motor vehicle normally used for personal,
14 family or household purposes and subject to a warranty, and the
15 spouse or child of the purchaser if such motor vehicle is
16 transferred to the spouse or child during the duration of any
1 warranty applicable to such motor vehicle, and any other person
2 entitled by the terms of such warranty to enforce the
3 obligations of the warranty.
4 "Dealer." Any person or business which sells or offers for
5 sale a used vehicle after selling or offering for sale three or
6 more used vehicles in the previous 12-month period. The term
7 does not include a bank or financial institution, a business
8 selling a used vehicle to an employee of that business, a lessor
9 selling a leased vehicle to that vehicle's lessee, a family
10 member of the lessee, or an employee of the lessee, or the
11 Commonwealth, its agencies, bureaus, boards, commissions and
12 authorities, and all of the political subdivisions of this
13 Commonwealth, including the agencies and authorities of such
14 subdivisions.
15 "Repair insurance." A contract in writing for any period of
16 time or any specific mileage to refund, repair, replace,
17 maintain or take other action with respect to a used motor
18 vehicle and which is regulated by the Insurance Department.
19 "Service contract." A contract in writing for any period of
20 time or any specific mileage to refund, repair, replace,
21 maintain or take other action with respect to a used motor
22 vehicle and provided at an extra charge beyond the price of the
23 used motor vehicle.
24 "Used motor vehicle." A passenger motor vehicle, excluding
25 motorcycles, motor homes and off-road vehicles, which has been
26 driven more than the limited use necessary in moving or road
27 testing a new vehicle prior to delivery.
28 "Warranty." Any undertaking in connection with the sale by a
29 dealer of a used motor vehicle to refund, repair, replace,
30 maintain or take other action with respect to such used motor
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1 vehicle and provided at no extra charge beyond the price of the
2 used motor vehicle.
3 Section 3. Written warranty required; terms.
4 (a) Terms of warranty.--No dealer shall sell a used motor
5 vehicle to a consumer without giving the consumer a written
6 warranty which shall, at minimum, apply for the following terms:
7 (1) If the used motor vehicle has 36,000 miles or less,
8 the warranty shall be, at minimum, 60 days or 3,000 miles,
9 whichever comes first.
10 (2) If the used motor vehicle has more than 36,000
11 miles, the warranty shall be, at minimum, 30 days or 1,000
12 miles, whichever comes first.
13 (b) Warranty requirements.--The written warranty shall
14 require the dealer or his agent to repair or, at the election of
15 the dealer, reimburse the consumer for the reasonable cost of
16 repairing the failure of a covered part. Covered parts shall at
17 least include the following items:
18 (1) Engine. All lubricated parts, water pump, fuel pump,
19 manifolds, engine block, cylinder head, rotary engine
20 housings and flywheel.
21 (2) Transmission. The transmission case, internal parts
22 and the torque converter.
23 (3) Drive axle. Front and rear drive axle housings and
24 internal parts, axle shafts, propeller shafts and universal
25 joints.
26 (4) Brakes. Master cylinder, vacuum assist booster,
27 wheel cylinders, hydraulic lines and fittings, and disc brake
28 calipers.
29 (5) Radiator.
30 (6) Steering. The steering gear housing and all internal
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1 parts, power steering pump, valve body, piston and rack.
2 (7) Alternator, generator, starter and ignition system,
3 excluding the battery.
4 (c) Notice to be given within warranty period.--Such repair
5 or reimbursement shall be made by the dealer, notwithstanding
6 the fact that the warranty period has expired, provided the
7 consumer notifies the dealer of the failure of a covered part
8 within the specified warranty period.
9 (d) New car warranty.--If the warranty provided for in the
10 act of March 28, 1984 (P.L.150, No.28), known as the Automobile
11 Lemon Law, is in effect at the time of the sale of the used
12 motor vehicle, the warranty specified in this act shall be
13 required only for the period of time, if any, between the
14 expiration of the new car warranty and the period specified in
15 subsection (a).
16 (e) Exclusions permitted.--The written warranty may contain
17 additional language excluding coverage:
18 (1) for a failure of a covered part caused by a lack of
19 customary maintenance;
20 (2) for a failure of a covered part caused by collision,
21 abuse, negligence, theft, vandalism, fire or other casualty,
22 and damage from the environment (windstorm, lightning, road
23 hazards, etc.);
24 (3) if the odometer has been stopped or altered such
25 that the vehicle's actual mileage cannot be readily
26 determined or if any covered part has been altered such that
27 a covered part was thereby caused to fail;
28 (4) for maintenance services and the parts used in
29 connection with such services such as seals, gaskets, oil or
30 grease unless required in connection with the repair of a
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1 covered part;
2 (5) for a motor tune-up;
3 (6) for a failure resulting from racing or other
4 competition;
5 (7) for a failure caused by towing a trailer or another
6 vehicle unless the used motor vehicle is equipped for this as
7 recommended by the manufacturer;
8 (8) if the used motor vehicle is used to carry
9 passengers for hire;
10 (9) if the used motor vehicle is rented to someone else;
11 (10) for repair of valves or rings to correct low
12 compression or oil consumption which are considered normal
13 wear;
14 (11) to the extent otherwise permitted by law, for
15 property damage arising or allegedly arising out of the
16 failure of a covered part; and
17 (12) to the extent otherwise permitted by law, for loss
18 of the use of the used motor vehicle, loss of time,
19 inconvenience, commercial loss or consequential damages.
20 Section 4. Failure to honor warranty.
21 (a) Failure of dealer.--If the dealer or his agent fails to
22 correct a malfunction or defect, as required by the warranty
23 specified in this act, which substantially impairs the value of
24 the used motor vehicle to the consumer after a reasonable period
25 of time, the dealer shall accept return of the used motor
26 vehicle from the consumer and refund to the consumer the full
27 purchase price, including sales or use tax, less a reasonable
28 allowance for any damage not attributable to normal wear or
29 usage, and adjustment for any modifications which either
30 increase or decrease the market value of the vehicle. In
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1 determining the purchase price to be refunded, the purchase
2 price shall be deemed equal to the sum of the actual cash
3 difference paid for the used motor vehicle plus, if the dealer
4 elects to not return any vehicles traded in by the consumer, the
5 wholesale value of any such traded-in vehicles as listed in the
6 National Auto Dealers Association Used Car Guide, or such other
7 guide as may be specified in regulations promulgated by the
8 Secretary of Transportation, as adjusted for mileage,
9 improvements and any major physical or mechanical defects in the
10 traded-in vehicle at the time of trade-in. The contract of sale
11 for the used motor vehicle shall include conspicuous language
12 indicating that if the consumer should be entitled to a refund
13 pursuant to this section, the value of any vehicle traded in by
14 the consumer, if the dealer elects to not return it to the
15 consumer, for purposes of determining the amount of such refund,
16 will be determined by reference to the National Auto Dealers
17 Association Used Car Guide wholesale value, or such other guide
18 as may be approved by the Secretary of Transportation, as
19 adjusted for mileage, improvements, and any major physical or
20 mechanical defects, rather than the value listed in the sales
21 contract. Refunds shall be made to the consumer and lienholder,
22 if any, as their interests may appear on the records of
23 ownership kept by the Bureau of Motor Vehicles. If the amount to
24 be refunded to the lienholder will be insufficient to discharge
25 the lien, the dealer shall notify the consumer in writing by
26 certified mail that the consumer has 30 days to pay the
27 lienholder the amount which, together with the amount to be
28 refunded by the dealer, will be sufficient to discharge the
29 lien. The notice to the consumer shall contain conspicuous
30 language warning the consumer that failure to pay such funds to
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1 the lienholder within 30 days will terminate the dealer's
2 obligation to provide a refund. If the consumer fails to make
3 such payment within 30 days, the dealer shall have no further
4 responsibility to provide a refund under this section.
5 Alternatively, the dealer may elect to offer to replace the used
6 motor vehicle with a comparably priced vehicle, with such
7 adjustment in price as the parties may agree to. The consumer
8 shall not be obligated to accept a replacement vehicle but may
9 instead elect to receive the refund provided under this section.
10 It shall be an affirmative defense to any claim under this
11 section that:
12 (1) the malfunction or defect does not substantially
13 impair such value; or
14 (2) the malfunction or defect is the result of abuse,
15 neglect or unreasonable modifications or alterations of the
16 used motor vehicle.
17 (b) Presumptions.--It shall be presumed that a dealer has
18 had a reasonable opportunity to correct a malfunction or defect
19 in a used motor vehicle, if:
20 (1) the same malfunction or defect has been subject to
21 repair three or more times by the selling dealer or his agent
22 within the warranty period, but such malfunction or defect
23 continues to exist; or
24 (2) the vehicle is out of service by reason of repair or
25 malfunction or defect for a cumulative total of 15 or more
26 days during the warranty period. The period shall not include
27 days when the dealer is unable to complete the repair because
28 of the unavailability of necessary repair parts. The dealer
29 shall be required to exercise due diligence in attempting to
30 obtain necessary repair parts, provided that if a vehicle has
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1 been out of service for a cumulative total of 45 days, even
2 if a portion of that time is attributable to the
3 unavailability of replacement parts, the consumer shall be
4 entitled to the replacement or refund remedies provided in
5 this section.
6 (c) Extension of warranty term.--The term of any warranty,
7 service contract or repair insurance shall be extended by any
8 time period during which the used motor vehicle is in the
9 possession of the dealer or his duly authorized agent for the
10 purpose of repairing the used motor vehicle under the terms and
11 obligations of the warranty, service contract or repair
12 insurance.
13 (d) Nonextension of warranty term.--The term of any
14 warranty, service contract or repair insurance, and the 15-day
15 out-of-service period, shall not be extended by any time during
16 which repair services are not available to the consumer because
17 of war, invasion or strike, or fire, flood or other natural
18 disaster.
19 Section 5. Waiver void.
20 (a) Waiver against public policy.--Any agreement entered
21 into by a consumer for the purchase of a used motor vehicle
22 which waives, limits or disclaims the rights set forth in this
23 act shall be void as contrary to public policy. If a dealer
24 fails to give the written warranty required by this act, the
25 dealer nevertheless shall be deemed to have given said warranty
26 as a matter of law.
27 (b) Other remedies available.--Nothing in this act shall in
28 any way limit the rights or remedies which are otherwise
29 available to a consumer under any other law.
30 (c) Exceptions.--This act shall not apply to used motor
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1 vehicles sold for less than $1,500, nor shall it apply to the
2 sale of classic cars registered pursuant to Title 75 of the
3 Pennsylvania Consolidated Statutes (relating to vehicles).
4 Section 6. Arbitration and enforcement.
5 (a) Informal dispute settlement procedure.--If a dealer has
6 established or participates in an informal dispute settlement
7 procedure which complies in all respects with the provisions of
8 16 CFR Part 703, the provisions of this act concerning refunds
9 or replacement shall not apply to any consumer who has not first
10 resorted to such procedure.
11 (b) Rights not abrogated.--In no event shall a consumer who
12 has resorted to an informal dispute settlement procedure be
13 precluded from seeking the rights or remedies available by law.
14 (c) Attorney fees may be awarded.--In an action brought to
15 enforce the provisions of this act, the court may award
16 reasonable attorney fees to a prevailing plaintiff.
17 (d) Statute of limitations.--Any action brought pursuant to
18 this act shall be commenced within four years of the date of
19 original delivery of the used motor vehicle to the consumer.
20 Section 7. Itemized statement required.
21 The dealer shall provide to the consumer, each time the
22 consumer's vehicle is returned from being serviced or repaired,
23 a fully itemized statement indicating all work performed on such
24 vehicle, including, but not limited to, parts and labor.
25 Section 8. Disclosure.
26 The Attorney General shall prepare and publish in the
27 Pennsylvania Bulletin a statement which explains a consumer's
28 rights under this act. Dealers shall provide to each consumer at
29 the time of purchase of a used motor vehicle a written statement
30 containing a copy of the Attorney General's statement and a
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1 listing of zone offices, with addresses and phone numbers, which
2 can be contacted by the consumer for the purpose of securing the
3 remedies provided for in this act.
4 Section 9. Application of unfair trade act.
5 A violation of this act shall also be a violation of the act
6 of December 17, 1968 (P.L.1224, No.387), known as the Unfair
7 Trade Practices and Consumer Protection Law.
8 Section 10. Applicability.
9 This act applies to all used motor vehicles sold on or after
10 the effective date of this act.
11 Section 11. Effective date.
12 This act shall take effect in 90 days.
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