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                                                      PRINTER'S NO. 1206

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1052 Session of 2001


        INTRODUCED BY ROONEY, GEORGE, STABACK, BELFANTI, YOUNGBLOOD,
           CALTAGIRONE, COY, WILT, BELARDI, READSHAW, TRAVAGLIO, McCALL,
           TIGUE, COSTA, M. COHEN, MANDERINO, MYERS, LAUGHLIN, CORRIGAN,
           SHANER, WALKO, J. WILLIAMS, SOLOBAY, CAPPABIANCA, WOJNAROSKI,
           WASHINGTON, SURRA, GRUCELA, SAINATO, PISTELLA, FREEMAN,
           HARHAI, TRELLO, PETRARCA, CRUZ AND STEELMAN, MARCH 19, 2001

        REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, MARCH 19, 2001

                                     AN ACT

     1  Providing for rights of purchasers of defective computer devices
     2     and for protection from warranty abuses and effective
     3     warranty repairs; imposing certain recordkeeping
     4     requirements; and establishing a right of action.

     5     The General Assembly of the Commonwealth of Pennsylvania
     6  hereby enacts as follows:
     7  Section 1.  Short title.
     8     This act shall be known and may be cited as the Computer
     9  Lemon Law.
    10  Section 2.  Definitions.
    11     The following words and phrases when used in this act shall
    12  have the meanings given to them in this section unless the
    13  context clearly indicates otherwise:
    14     "Brand new computer."  A computer device which is recently
    15  assembled, unused and contains no reconditioned parts.
    16     "Computer device."  A central processing unit or terminal
    17  display screen, including all circuitry and connective devices,

     1  a printer, modem, scanner or other device used with a computer
     2  or any programming for a computer, whether preinstalled or
     3  purchased separately.
     4     "Date of sale or lease."  The date when a computer device is
     5  first delivered to a purchaser.
     6     "Manufacturer."  A person or for-profit entity engaged in the
     7  business of manufacturing or assembling computers or computer
     8  software or accessories.
     9     "Nonconformity."  A defect, condition or malfunction which
    10  impairs the use of a computer device or causes it to operate in
    11  a manner not intended.
    12     "Notice."  The means by which a purchaser advises a
    13  manufacturer of a nonconformity, whether transmitted by any of
    14  the following: certified mail, registered mail, return receipt
    15  requested, facsimile transmission, electronic, e-mail or any
    16  means provided for in the manufacturer's warranty or service
    17  materials.
    18     "Purchaser."  A person who is a resident or temporary
    19  resident of this Commonwealth or business entity that has fewer
    20  than 30 personal computers acting either in concert with a
    21  network or as stand-alone machines and who obtains a computer
    22  device by lease, retail sale, Internet sale, gift, special
    23  contract or other transaction, whether delivered or currently
    24  located in this Commonwealth.
    25  Section 3.  Notice to purchaser.
    26     (a)  Statement of purchaser's rights.--A purchaser shall be
    27  provided at the time of sale or lease with an accurate statement
    28  of the purchaser's rights established by this act in 14-point
    29  boldface type. The manufacturer shall secure from the purchaser
    30  a signed acknowledgment that the rights have been explained and
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     1  are understood. Unless a signed acknowledgment of rights is
     2  secured, the time limits specified in section 4 shall be tolled.
     3     (b)  Disclosure of programs.--At the time of sale, the
     4  manufacturer of a computer device must conspicuously disclose
     5  the name of all software programs and or combinations of
     6  programs, by version number, which will cause or may be likely
     7  to cause, operating problems with the device. It shall be the
     8  burden of the manufacturer to prove in any claim brought under
     9  this act that such disclosure was made.
    10  Section 4.  Coverage and coverage period.
    11     (a)  Right to repair.--A purchaser of a computer device shall
    12  be entitled to effective repairs by the manufacturer for any
    13  nonconformity which shall arise during the first 24 months of
    14  use, at no cost to the purchaser, except that if the
    15  manufacturer has issued a warranty or service contract, the
    16  coverage period shall be the greater of the term specified in
    17  the warranty or service contract or 24 months from the date of
    18  purchase.
    19     (b)  Manufacturer duty to repair.--Within five business days
    20  after receiving notice from a purchaser of a nonconformity, plus
    21  reasonable time for shipping of not more than three business
    22  days, the manufacturer shall repair any computer device and
    23  return it to the purchaser as follows:
    24         (1)  If onsite service is provided for in the warranty,
    25     repairs shall be made at the purchaser's location without
    26     charge.
    27         (2)  If onsite service is not specified in the warranty,
    28     the manufacturer shall arrange and pay for the cost of
    29     shipping from the purchaser's location.
    30         (3)  A purchaser who at the manufacturer's direction
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     1     conducts diagnostic, troubleshooting or attempted repairs,
     2     including, but not limited to, partial disassembly, shall for
     3     the purposes of this act be considered the same as if the
     4     repairs were attempted by the manufacturer itself.
     5         (4)  All repairs shall be guaranteed by the manufacturer
     6     for a term of two years.
     7     (c)  Second opportunity for repair.--If the repair is
     8  ineffective, the manufacturer shall, upon notice from the
     9  consumer, have a second opportunity to make an effective repair
    10  at the purchaser's physical location, provided that the repair
    11  is completed within three business days. The purchaser shall not
    12  be required to ship the unit back to the manufacturer for the
    13  final repair opportunity regardless of the manufacturer's
    14  willingness to pay for the cost of same.
    15     (d)  Right to refund.--
    16         (1)  If the second repair is ineffective or if the
    17     manufacturer fails to timely respond to the purchaser as
    18     required under this section, the purchaser may elect:
    19             (i)  a refund of the full purchase price paid at the
    20         time of sale or the full value of the lease, as the case
    21         may be, plus finance and collateral charges; or
    22             (ii)  delivery of a brand new computer device from
    23         the manufacturer, of equal or greater value than the
    24         original price paid at the time of acquisition, without
    25         charge or offset for use.
    26         (2)  If more than one nonconformity has been subject to
    27     repair, no second repair attempt shall be required before
    28     seeking the remedies provided in this act.
    29     (e)  Return of unrepaired computer device.--A manufacturer
    30  may, at its discretion, request return of the unrepaired
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     1  computer device at cost, if the manufacturer has replaced the
     2  unit or refunded the purchase price.
     3     (f)  Resale prohibited.--No computer device returned under
     4  this section may be resold in this Commonwealth. A violation of
     5  this subsection shall be a violation of the act of December 17,
     6  1968 (P.L.1224, No.387), known as the Unfair Trade Practices and
     7  Consumer Protection Law, entitling any subsequent purchaser to
     8  treble the purchase price paid by that purchaser.
     9     (g)  Breach of warranty.--Notwithstanding subsections (e) and
    10  (f), a manufacturer who refuses to honor the terms of any
    11  warranty booklet or materials delivered to the purchaser at,
    12  prior to or after the delivery of the computer device shall be
    13  in violation of the Unfair Trade Practices and Consumer
    14  Protection Law, entitling the purchaser to treble the purchase
    15  price paid for the device.
    16  Section 5.  Recordkeeping.
    17     A manufacturer shall retain records of all contacts,
    18  communications, notice transmissions or customer service
    19  dialogues between itself and a purchaser and shall maintain a
    20  list, by serial number, of all refunds or replacements made
    21  pursuant to this act. Copies shall be made available to the
    22  purchaser upon demand, regardless of whether the manufacturer
    23  utilizes the services of a third party to manage purchaser
    24  claims. Failure to comply with this section shall be a violation
    25  of the act of December 17, 1968 (P.L.1224, No.387), known as the
    26  Unfair Trade Practices and Consumer Protection Law, entitling
    27  the purchaser to treble the purchase price paid for the device.
    28  Section 6.  Civil actions.
    29     (a)  Right of action.--If the manufacturer of a computer
    30  device violates any provision of this act, the purchaser may
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     1  initiate an action to recover as damages any and all remedies
     2  specified in section 4.
     3     (b)  Additional award.--In addition to refund or replacement
     4  of the computer device under section 4, a prevailing purchaser
     5  shall be entitled to the following:
     6         (1)  $1,500, if judgment is obtained from a district
     7     justice or municipal court judge;
     8         (2)  $3,000, if judgment is obtained from a common pleas
     9     court panel of arbitration; or
    10         (3)  $6,000, if judgment is obtained from a common pleas
    11     court.
    12     (c)  Corporate witness.--If a purchaser initiates an action
    13  in this Commonwealth for a violation of this act, the
    14  manufacturer shall produce at each and every court proceeding in
    15  such action a corporate representative who shall be fully aware
    16  of the facts and circumstances of the case and have available
    17  for the court's review a copy of all data generated under the
    18  provisions of this section.
    19  Section 7.  Attorney fees.
    20     If a purchaser prevails in a claim under this act, the
    21  manufacturer shall pay the purchaser's reasonable attorney fees,
    22  costs and expert expenses in resolving and, if necessary,
    23  litigating an action under section 6, regardless of the cost of
    24  the computer device.
    25  Section 8.  Prohibited defenses.
    26     It shall not be a defense under this act that a nonconformity
    27  was caused by a software programming problem:
    28         (1)  If the software was preinstalled by the
    29     manufacturer.
    30         (2)  Unless the manufacturer produces an expert witness
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     1     at the proceedings who examined the computer device and can
     2     specify the exact cause and correction of the problem.
     3         (3)  Unless the manufacturer has strictly complied with
     4     the notice provisions of section 3(b).
     5  Section 9.  Expert witness.
     6     A purchaser who seeks relief under this act shall not be
     7  required to retain the opinion of an expert to prevail against a
     8  manufacturer under any circumstances.
     9  Section 10.  Application of Unfair Trade Practices and Consumer
    10                 Protection Law.
    11     A violation of any provision of this act shall also be a
    12  violation of the act of December 17, 1968 (P.L.1224, No.387),
    13  known as the Unfair Trade Practices and Consumer Protection Law.
    14  Section 11.  Rights preserved.
    15     Nothing in this act shall limit the purchaser from pursuing
    16  any other rights or remedies under any other law, contract or
    17  warranty.
    18  Section 12.  Nonwaiver of act.
    19     The provisions of this act may not be waived by a purchaser.
    20  Section 13.  Applicability.
    21     This act shall apply to all computer devices purchased,
    22  leased or delivered to a purchaser after the effective date of
    23  this act.
    24  Section 14.  Effective date.
    25     This act shall take effect in 60 days.




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