Pennsylvania Act 2002-117 — AUTOMOBILE LEMON LAW - AMEND RETURNED MOTOR VEHICLE RESALE

Act text

AUTOMOBILE LEMON LAW - AMEND RETURNED MOTOR VEHICLE RESALE
                  Act of Oct. 2, 2002, P.L. 809, No. 117              Cl. 12
                             Session of 2002
                               No. 2002-117

     HB 767

                                  AN ACT

     Amending the act of March 28, 1984 (P.L.150, No.28), entitled
        "An act relating to the rights of purchasers of defective new
        motor vehicles," further providing for definitions and for
        resale of returned motor vehicle.

        The General Assembly of the Commonwealth of Pennsylvania
     hereby enacts as follows:

        Section 1.  Sections 2 and 10 of the act of March 28, 1984
     (P.L.150, No.28), known as the Automobile Lemon Law, amended
     December 13, 2001 (P.L.868, No.94), are amended to read:
      Section 2.  Definitions.
        The following words and phrases when used in this act shall
     have the meanings given to them in this section unless the
     context clearly indicates otherwise:
        "Dealer" or "motor vehicle dealer."  A person in the business
     of buying, selling, leasing or exchanging vehicles.
        "Department."  The Department of Transportation of the
     Commonwealth.
        "Manufacturer."  Any person engaged in the business of
     constructing or assembling new and unused motor vehicles or
     engaged in the business of importing new and unused motor
     vehicles into the United States for the purpose of selling or
     distributing new and unused motor vehicles to motor vehicle
     dealers in this Commonwealth.
        "Manufacturer's express warranty" or "warranty."  The written
     warranty of the manufacturer of a new automobile of its
     condition and fitness for use, including any terms or conditions
     precedent to the enforcement of obligations under the warranty.
        "New motor vehicle."  Any new and unused self-propelled,
     motorized conveyance driven upon public roads, streets or
     highways which is designed to transport not more than 15
     persons, which was purchased or leased and is registered in the
     Commonwealth or purchased or leased elsewhere and registered for
     the first time in the Commonwealth and is used, leased or bought
     for use primarily for personal, family or household purposes,
     including a vehicle used by a manufacturer or dealer as a
     demonstrator or dealer car prior to its sale. The term does not
     include motorcycles, motor homes or off-road vehicles.
        "Nonconformity."  A defect or condition which substantially
     impairs the use, value or safety of a new motor vehicle and does
     not conform to the manufacturer's express warranty.
        "Purchaser."  A person, or his successors or assigns, who has
     obtained possession or ownership of a new motor vehicle by
     lease, transfer or purchase or who has entered into an agreement
     or contract for the lease or purchase of a new motor vehicle
     which is used, leased or bought for use primarily for personal,
     family or household purposes.
      Section 10.  Resale of returned motor vehicle.
        (a)  Vehicles may not be resold, transferred or leased at
     retail or wholesale.--If a motor vehicle has been [returned]
     repurchased under the provisions of this act or a similar
     statute of another state, it may not be resold, transferred or
     leased in this State unless:
            (1)  The manufacturer provides the same express warranty
        it provided to the original purchaser, except that the term
        of the warranty need only last for 12,000 miles or 12 months
        after the date of resale, transfer or lease whichever is
        earlier.
            (2)  The manufacturer provides the [consumer] purchaser,
        lessee or transferee with a written statement on a separate
        piece of paper, in ten point all capital type, in
        substantially the following form:
            "IMPORTANT: THIS VEHICLE WAS [RETURNED TO] REPURCHASED BY
            THE MANUFACTURER BECAUSE IT DID NOT CONFORM TO THE
            MANUFACTURER'S EXPRESS WARRANTY AND THE NONCONFORMITY WAS
            NOT CURED WITHIN A REASONABLE TIME AS PROVIDED BY
            PENNSYLVANIA LAW."
            (3)  The motor vehicle dealer, lessor or transferor
        clearly and conspicuously discloses the manufacturer's
        written notification prior to the resale or lease of the
        repurchased motor vehicle.
            (4)  The motor vehicle dealer, lessor or transferor
        obtains a signed receipt certifying in a conspicuous and
        understandable manner that the written statement required
        under this subsection has been provided. Access to the
        receipt shall be maintained for four years. The Attorney
        General shall approve the form and content of the disclosure
        statement supplied by the manufacturer.
            (5)  The manufacturer, dealer, lessor or transferor
        applies for and receives the designation of a branded title
        from the department.
            (6)  The department shall update its records and issue a
        title with a designation indicating that the motor vehicle
        was repurchased under the provisions of this act. The
        department shall forward to subsequent purchasers or
        lienholders, in accordance with 75 Pa.C.S. §§ 1107 (relating
        to delivery of certificate of title) and 1132.1 (relating to
        perfection of security interest in a vehicle), a certificate
        of title which indicates that the vehicle was branded under
        the provisions of this act. The department shall determine
        the exact form and content of the title brand.
     The provisions of this section apply to the resold, transferred
     or leased motor vehicle for the full term of the warranty
     required under this subsection. Failure of the manufacturer,
     dealer, lessor or transferor to notify its immediate purchaser
     of the requirements of this section subjects the manufacturer,
     dealer, lessor or transferor to pay to the Commonwealth a civil
     penalty of $2,000 per violation and, at the option of the
     purchaser, to replace the motor vehicle with a comparable motor
     vehicle of equal value or accept return of the vehicle from the
     purchaser and refund to the purchaser the full purchase price,
     including all collateral charges, less a reasonable allowance
     for the purchaser's use of the vehicle not exceeding 10¢ per
     mile driven or 10% of the purchase price of the vehicle,
     whichever is less.
        (b)  Returned vehicles not to be resold.--Notwithstanding the
     provisions of subsection (a), if a new motor vehicle has been
     returned under the provisions of this act or a similar statute
     of another state because of a nonconformity resulting in a
     complete failure of the braking or steering system of the motor
     vehicle likely to cause death or serious bodily injury if the
     vehicle was driven, the motor vehicle may not be resold in this
     Commonwealth.
        (c)  Agreement waiving, limiting or disclaiming rights.--Any
     agreement entered into by a purchaser that waives, limits or
     disclaims the rights set forth in this act is void as contrary
     to public policy. Where applicable, the rights set forth in this
     act shall extend to a subsequent purchaser, lessee or transferee
     of the motor vehicle.
        Section 2.  The amendments of this act shall apply to the
     purchase or lease of a new motor vehicle on or after the
     effective date of this amendatory act.
        Section 3.  This act shall take effect in 60 days.

     APPROVED--The 2nd day of October, A. D. 2002.

     MARK S. SCHWEIKER