Pennsylvania Act 2001-94 — AUTOMOBILE LEMON LAW - OMNIBUS AMENDMENTS

Act text

AUTOMOBILE LEMON LAW - OMNIBUS AMENDMENTS
                  Act of Dec. 13, 2001, P.L. 868, No. 94              Cl. 12
                             Session of 2001
                               No. 2001-94

     SB 286

                                  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," amending the title of the act; and further
      providing for definitions, for repair obligations, for
      manufacturer's duty for refund or replacement and for resale of
      returned motor vehicle.

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

      Section 1.  The title of the act of March 28, 1984 (P.L.150,
     No.28), known as the Automobile Lemon Law, is amended to read:
                                  AN ACT
     Relating to the rights of purchasers and lessees of defective
      new motor vehicles.
        Section 2.  Sections 2, 4, 5 and 10 of the act 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.
        "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 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 4.  Repair obligations.
        (a)  Repairs required.--The manufacturer of a new motor
     vehicle sold or leased and registered in the Commonwealth shall
     repair or correct, at no cost to the purchaser, a nonconformity
     which substantially impairs the use, value or safety of said
     motor vehicle which may occur within a period of one year
     following the actual delivery of the vehicle to the purchaser,
     within the first 12,000 miles of use or during the term of the
     warranty, whichever may first occur.
        (b)  Delivery of vehicle.--It shall be the duty of the
     purchaser to deliver the nonconforming vehicle to the
     manufacturer's authorized service and repair facility within the
     Commonwealth, unless, due to reasons of size and weight or
     method of attachment or method of installation or nature of the
     nonconformity, such delivery cannot reasonably be accomplished.
     Should the purchaser be unable to effect return of the
     nonconforming vehicle, he shall notify the manufacturer or its
     authorized service and repair facility. Written notice of
     nonconformity to the manufacturer or its authorized service and
     repair facility shall constitute return of the vehicle when the
     purchaser is unable to return the vehicle due to the
     nonconformity. Upon receipt of such notice of nonconformity, the
     manufacturer shall, at its option, service or repair the vehicle
     at the location of nonconformity or pick up the vehicle for
     service and repair or arrange for transporting the vehicle to
     its authorized service and repair facility. All costs of
     transporting the vehicle when the purchaser is unable to effect
     return, due to nonconformity, shall be at the manufacturer's
     expense.
      Section 5.  Manufacturer's duty for refund or replacement.
        If the manufacturer fails to repair or correct a
     nonconformity after a reasonable number of attempts, the
     manufacturer shall, at the option of the purchaser, 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 or lease 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 or lease price of the vehicle,
     whichever is less. Refunds shall be made to the purchaser and
     lienholder, if any, as their interests may appear. A reasonable
     allowance for use shall be that amount directly attributable to
     use by the purchaser prior to his first report of the
     nonconformity to the manufacturer. In the event the consumer
     elects a refund, payment shall be made within 30 days of such
     election. A consumer shall not be entitled to a refund or
     replacement if the nonconformity does not substantially impair
     the use, value or safety of the vehicle or the nonconformity is
     the result of abuse, neglect or modification or alteration of
     the motor vehicle by the purchaser.
      Section 10.  Resale of returned motor vehicle.
        (a)  Vehicles may not be resold.--If a motor vehicle has been
     returned under the provisions of this act or a similar statute
     of another state, it may not be resold 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, whichever is earlier.
            (2)  The manufacturer provides the consumer 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 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."
     The provisions of this section apply to the resold motor vehicle
     for the full term of the warranty required under this
     subsection.
        (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.
      Section 3.  This act shall apply to the purchase or lease of a
     new motor vehicle on or after the effective date of this act.
      Section 4.  This act shall take effect in 60 days.

     APPROVED--The 13th day of December, A. D. 2001.

     MARK S. SCHWEIKER