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                                                      PRINTER'S NO. 2929

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

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
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     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
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     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.


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