PRINTER'S NO. 2929
No. 2219 Session of 1998
INTRODUCED BY READSHAW, BELFANTI, BELARDI, McGEEHAN, BEBKO- JONES, WOGAN, LAUGHLIN, KAISER, HALUSKA, PISTELLA, WOJNAROSKI, WAUGH, YOUNGBLOOD, STABACK, DeWEESE, WALKO, MELIO, KELLER, OLASZ, CIVERA, RAMOS, SAINATO, MAHER, A. H. WILLIAMS, MAYERNIK AND MICHLOVIC, FEBRUARY 10, 1998
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, FEBRUARY 10, 1998
AN ACT 1 Relating to the rights of purchasers of defective new vessels. 2 The General Assembly of the Commonwealth of Pennsylvania 3 hereby enacts as follows: 4 Section 1. Short title. 5 This act shall be known and may be cited as the Vessel Lemon 6 Law. 7 Section 2. Definitions. 8 The following words and phrases when used in this act shall 9 have the meanings given to them in this section unless the 10 context clearly indicates otherwise: 11 "Dealer." A person in the business of buying, selling or 12 exchanging vessels. 13 "Manufacturer." Any person engaged in the business of 14 constructing or assembling new and unused vessels or engaged in 15 the business of importing new and unused vessels into the United 16 States for the purpose of selling or distributing new and unused
1 vessels to dealers in this Commonwealth. 2 "Manufacturer's express warranty" or "warranty." The written 3 warranty of the manufacturer of a new vessel of its condition 4 and fitness for use, including any terms or conditions precedent 5 to the enforcement of obligations under the warranty. 6 "New vessel." Any new and unused vessel propelled by other 7 than muscular power, which was purchased and is registered in 8 this Commonwealth and is used or bought for use primarily for 9 personal purposes. 10 "Nonconformity." A defect or condition which substantially 11 impairs the use, value or safety of a new vessel and does not 12 conform to the manufacturer's express warranty. 13 "Purchaser." A person, or his successors or assigns, who has 14 obtained ownership of a new vessel by transfer or purchase or 15 who has entered into an agreement or contract for the purchase 16 of a new vessel which is used or bought for use primarily for 17 personal purposes. 18 Section 3. Disclosure. 19 The Attorney General shall prepare and publish in the 20 Pennsylvania Bulletin a statement which explains a purchaser's 21 rights under this law. Manufacturers shall provide to each 22 purchaser at the time of original purchase of a new vessel a 23 written statement containing a copy of the Attorney General's 24 statement and a listing of zone offices, with addresses and 25 phone numbers, which can be contacted by the purchaser for the 26 purpose of securing the remedies provided for in this act. 27 Section 4. Repair obligations. 28 (a) Repairs required.--The manufacturer of a new vessel sold 29 and registered in this Commonwealth shall repair or correct, at 30 no cost to the purchaser, a nonconformity which substantially 19980H2219B2929 - 2 -
1 impairs the use, value or safety of the vessel which may occur 2 within a period of one year following the actual delivery of the 3 vessel to the purchaser. 4 (b) Delivery of vessel.--It shall be the duty of the 5 purchaser to deliver the nonconforming vessel to the 6 manufacturer's authorized service and repair facility within 7 this Commonwealth, unless, due to reasons of the nature of the 8 nonconformity, such delivery cannot reasonably be accomplished. 9 If the purchaser is unable to effect return of the nonconforming 10 vessel, he shall notify the manufacturer or its authorized 11 service and repair facility. Written notice of nonconformity to 12 the manufacturer or its authorized service and repair facility 13 shall constitute return of the vessel when the purchaser is 14 unable to return the vessel due to the nonconformity. Upon 15 receipt of such notice of nonconformity, the manufacturer shall, 16 at its option, service or repair the vessel at the location of 17 nonconformity or arrange for transporting the vessel to its 18 authorized service and repair facility. All costs of 19 transporting the vessel when the purchaser is unable to effect 20 return due to nonconformity shall be at the manufacturer's 21 expense. 22 Section 5. Manufacturer's duty to refund or replace. 23 If the manufacturer fails to repair or correct a 24 nonconformity after a reasonable number of attempts, the 25 manufacturer shall, at the option of the purchaser, replace the 26 vessel with a comparable vessel of equal value or accept return 27 of the vessel from the purchaser and refund to the purchaser the 28 full purchase price, including all collateral charges, less a 29 reasonable allowance for the purchaser's use of the vessel not 30 exceeding 10% of the purchase price of the vessel. Refunds shall 19980H2219B2929 - 3 -
1 be made to the purchaser and lienholder, if any, as their 2 interests may appear. A reasonable allowance for use shall be 3 that amount directly attributable to use by the purchaser prior 4 to his first report of the nonconformity to the manufacturer. In 5 the event the consumer elects a refund, payment shall be made 6 within 30 days of such election. A consumer shall not be 7 entitled to a refund or replacement if the nonconformity does 8 not substantially impair the use, value or safety of the vessel 9 or the nonconformity is the result of abuse, neglect or 10 modification or alteration of the vessel by the purchaser. 11 Section 6. Presumption of a reasonable number of attempts. 12 It shall be presumed that a reasonable number of attempts 13 have been undertaken to repair or correct a nonconformity if: 14 (1) the same nonconformity has been subject to repair 15 three times by the manufacturer, its agents or authorized 16 dealers and the nonconformity still exists; or 17 (2) the vessel is out-of-service by reason of any 18 nonconformity for a cumulative total of 30 or more calendar 19 days. 20 Section 7. Itemized statement required. 21 The manufacturer or dealer shall provide to the purchaser 22 each time the vessel is returned from being serviced or repaired 23 a fully itemized statement indicating all work performed on the 24 vessel, including, but not limited to, parts and labor. It shall 25 be the duty of a dealer to notify the manufacturer of the 26 existence of a nonconformity within seven days of the delivery 27 by a purchaser of a vessel subject to a nonconformity when it is 28 delivered to the same dealer for the second time for repair of 29 the same nonconformity. The notification shall be by certified 30 mail, return receipt requested. 19980H2219B2929 - 4 -
1 Section 8. Civil cause of action. 2 Any purchaser of a new vessel who suffers any loss due to 3 nonconformity of the vessel as a result of the manufacturer's 4 failure to comply with this act may bring a civil action in a 5 court of common pleas and, in addition to other relief, shall be 6 entitled to recover reasonable attorney fees and all court 7 costs. 8 Section 9. Informal dispute settlement procedure. 9 If the manufacturer has established an informal dispute 10 settlement procedure which complies with the provisions of 16 11 CFR Pt. 703, the provisions of section 8 shall not apply to a 12 purchaser who has not first resorted to the settlement procedure 13 as it relates to a remedy for defects or conditions affecting 14 the substantial use, value or safety of the vessel. The informal 15 dispute settlement procedure shall not be binding on the 16 purchaser and, in lieu of the settlement procedure, the 17 purchaser may pursue a remedy under section 8. 18 Section 10. Resale of returned vessel. 19 (a) Vehicles may not be resold.--If a vessel has been 20 returned under the provisions of this act or a similar statute 21 of another state, it may not be resold in this Commonwealth 22 unless: 23 (1) The manufacturer provides the same express warranty 24 it provided to the original purchaser, except that the term 25 of the warranty need only last for 12 months after the date 26 of resale. 27 (2) The manufacturer provides the consumer with a 28 written statement on a separate piece of paper, in ten point 29 all capital type, in substantially the following form: 30 "IMPORTANT: THIS VESSEL WAS RETURNED TO THE MANUFACTURER 19980H2219B2929 - 5 -
1 BECAUSE IT DID NOT CONFORM TO THE MANUFACTURER'S EXPRESS 2 WARRANTY AND THE NONCONFORMITY WAS NOT CURED WITHIN A 3 REASONABLE TIME AS PROVIDED BY PENNSYLVANIA LAW." 4 The provisions of this section apply to the resold vessel for 5 the full term of the warranty required under this subsection. 6 (b) Returned vessels not to be resold.--Notwithstanding the 7 provisions of subsection (a), if a new vessel has been returned 8 under the provisions of this act or a similar statute of another 9 state because of a nonconformity resulting in a complete failure 10 of the steering system of the vessel likely to cause death or 11 serious bodily injury, the vessel may not be resold in this 12 Commonwealth. 13 Section 11. Application of unfair trade act. 14 A violation of this act shall also be a violation of the act 15 of December 17, 1968 (P.L.1224, No.387), known as the Unfair 16 Trade Practices and Consumer Protection Law. 17 Section 12. Rights preserved. 18 Nothing in this act shall limit the purchaser from pursuing 19 any other rights or remedies under any other law, contract or 20 warranty. 21 Section 13. Nonwaiver of act. 22 The provisions of this act shall not be waived. 23 Section 14. Applicability. 24 This act shall apply to new vessels purchased after the 25 effective date of this act. 26 Section 15. Effective date. 27 This act shall take effect in 60 days. A20L12MRD/19980H2219B2929 - 6 -