PRIOR PRINTER'S NO. 164                       PRINTER'S NO. 2258

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 146 Session of 1987


        INTRODUCED BY LLOYD, VEON, PISTELLA, CAPPABIANCA, MICHLOVIC,
           KOSINSKI, TRUMAN, CESSAR, HECKLER, TRELLO, DeLUCA, KUKOVICH
           AND OLASZ, FEBRUARY 3, 1987

        AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
           OCTOBER 6, 1987

                                     AN ACT

     1  Regulating motor vehicle rustproofing; and providing penalties    <--
     2     REMEDIES.                                                      <--

     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 Vehicle
     7  Rustproofing Protection 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     "Manufacturer."  A person engaged directly or indirectly in
    13  manufacture or wholesale distribution of motor vehicles.
    14     "Motor vehicle."  A vehicle which is self-propelled, except
    15  one which is propelled solely by human power or electrical power
    16  obtained from overhead trolley wires, but not operated upon
    17  rails.

     1     "Motor vehicle dealer."  A person engaged in the business of
     2  buying, selling or exchanging motor vehicles at retail within
     3  this Commonwealth.
     4     "New motor vehicle."  A motor vehicle which has not
     5  previously been sold or exchanged at retail.
     6     "Person."  A natural person, firm, partnership, association
     7  or corporation.
     8  Section 3.  Unlawful activity.
     9     It shall be unlawful for a motor vehicle dealer to rustproof
    10  a new motor vehicle prior to the sale or exchange of that new
    11  motor vehicle at retail unless the motor vehicle dealer has:
    12         (1)  Informed the person who is buying the vehicle or
    13     receiving it in exchange that such person has the right to
    14     buy or receive the vehicle even if such person refuses to
    15     have the vehicle rustproofed by the dealer.
    16         (2)  Informed such person of any rustproofing of the
    17     vehicle by the manufacturer of the vehicle and of any
    18     warranty applicable to such rustproofing by the manufacturer.
    19         (3)  Obtained the consent of such person to have the
    20     vehicle rustproofed by the dealer.
    21  Section 4.  Regulations.
    22     The Attorney General may adopt such rules and regulations as
    23  may be necessary for the enforcement and administration of this
    24  act.
    25  Section 5.  Restraining prohibited acts.                          <--
    26     Whenever the Attorney General or a district attorney has
    27  reason to believe that a motor vehicle dealer is violating, or
    28  is about to violate, section 3, he may bring an action in the
    29  name of the Commonwealth against such motor vehicle dealer to
    30  restrain such violation by temporary or permanent injunction.
    19870H0146B2258                  - 2 -

     1  Section 6.  Payment of costs and restitution.
     2     Whenever any court issues a permanent injunction to restrain
     3  and prevent violations of section 3, the court may, in its
     4  discretion, direct that the defendant or defendants restore to
     5  any person in interest any moneys or property, real or personal,
     6  which may have been acquired by means of any violation of
     7  section 3, under terms and conditions to be established by the
     8  court.
     9  Section 7.  Assurances of voluntary compliance.
    10     In the administration of this act, the Attorney General may
    11  accept an assurance of voluntary compliance with respect to
    12  section 3 from any motor vehicle dealer who has engaged or was
    13  about to engage in a violation of section 3. Such assurance may
    14  include a stipulation for voluntary payment by the alleged
    15  violator providing for the restitution by the alleged violator
    16  to consumers, of money, property or other things received from
    17  them in connection with a violation of section 3. Any such
    18  assurance shall be in writing and be filed with the court. Such
    19  assurance of voluntary compliance shall not be considered an
    20  admission of violation for any purpose. Matters thus closed may
    21  at any time be reopened by the Attorney General for further
    22  proceedings in the public interest.
    23  Section 8.  Civil penalties.
    24     (a)  Voluntary complaint.--Any person who violates the terms
    25  of an injunction issued in an action brought under section 5 or
    26  any of the terms of an assurance of voluntary compliance duly
    27  filed in court under section 7 shall forfeit and pay to the
    28  Commonwealth a civil penalty of not more than $5,000 for each
    29  violation. For the purposes of this section, the court issuing
    30  an injunction or in which an assurance of voluntary compliance
    19870H0146B2258                  - 3 -

     1  is filed shall retain jurisdiction; and the cause shall be
     2  continued; and, in such cases, the Attorney General or the
     3  appropriate district attorney, acting in the name of the
     4  Commonwealth of Pennsylvania, may petition for recovery of civil
     5  penalties and any other equitable relief deemed needed or
     6  proper.
     7     (b)  Additional penalty.--In any action brought under section
     8  5, if the court finds that a motor vehicle dealer is violating
     9  or about to violate section 3, the Attorney General or the
    10  appropriate district attorney, acting in the name of the
    11  Commonwealth, may recover, on behalf of the Commonwealth, a
    12  civil penalty of not more than $1,000 per violation, which civil
    13  penalty shall be in addition to other relief which may be
    14  granted under sections 5 and 6.
    15  SECTION 5.  VIOLATIONS.                                           <--
    16     A VIOLATION OF SECTION 3 SHALL BE DEEMED A VIOLATION OF THE
    17  ACT OF DECEMBER 17, 1968 (P.L.1224, NO.387), KNOWN AS THE UNFAIR
    18  TRADE PRACTICES AND CONSUMER PROTECTION LAW. THE ATTORNEY
    19  GENERAL IS AUTHORIZED TO ENFORCE THIS ACT.
    20  Section 9 6.  Other remedies.                                     <--
    21     (a)  Private action.--Nothing in this act shall be construed
    22  to prohibit a private action for a violation of section 3. Any    <--
    23  permanent injunction, judgment or order of the court made under
    24  section 5 shall be prima facie evidence in any private action
    25  for a violation of section 3.
    26     (b)  Independent remedy.--Any actions ACTION brought by the    <--
    27  Attorney General or a district attorney under this act shall be   <--
    28  in addition to any actions ACTION which the Attorney General or   <--
    29  a district attorney may bring under any other law.
    30  Section 10 7.  Effective date.                                    <--
    19870H0146B2258                  - 4 -

     1     This act shall take effect in 60 days.




















    L12L75JRW/19870H0146B2258        - 5 -