PRINTER'S NO. 90
No. 96 Session of 1999
INTRODUCED BY SALVATORE, THOMPSON, LEMMOND, COSTA, SCHWARTZ,
WAUGH, KASUNIC AND TOMLINSON, JANUARY 11, 1999
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
JANUARY 11, 1999
AN ACT
1 Requiring disclosure of new motor vehicle damage; and providing
2 for enforcement.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. Short title.
6 This act shall be known and may be cited as the New Motor
7 Vehicle Damage Disclosure Act.
8 Section 2. Definitions.
9 The following words and phrases when used in this act shall
10 have the meanings given to them in this section unless the
11 context clearly indicates otherwise:
12 "Damage." Any physical harm sustained or incurred by a
13 vehicle, whether or not repaired or replaced.
14 "New motor vehicle." A vehicle, regardless of mileage, which
15 has never been registered or titled to an ultimate purchaser in
16 this Commonwealth or any other state or jurisdiction or which
17 has not been sold, bargained, exchanged or given away to an
1 ultimate purchaser. A transfer between dealers for the purpose
2 of resale shall not be considered as a transfer to an ultimate
3 purchaser.
4 Section 3. New motor vehicle damage disclosure.
5 (a) Notice to purchaser.--The selling vehicle dealer shall
6 notify the purchaser of a new vehicle in writing at the time of
7 sale of any damage or damage repairs incurred by the new
8 vehicle, regardless of whether or not the damaged portion was
9 repaired or replaced, which exceeds the greater of $500 or 3% of
10 the manufacturer's suggested retail price. Damage exceeding the
11 disclosure amount shall be disclosed by the vehicle dealer when:
12 (1) the manufacturer or its agent, in accordance with
13 the act of December 22, 1983 (P.L.306, No.84), known as the
14 Board of Vehicles Act, discloses that, at any time after the
15 manufacturing process is complete, damage occurred or damage
16 repairs were made;
17 (2) the vehicle dealer knows or should know based on
18 facts indicating that other damage or damage repair exists in
19 addition to the damage or repairs required to be disclosed
20 under paragraph (1); or
21 (3) the combined total of damage or damage repairs made
22 under paragraphs (1) and (2) exceeds the greater of $500 or
23 3% of the manufacturer's suggested retail price.
24 A vehicle dealer shall not misrepresent or mislead a purchaser
25 if the purchaser inquires about the existence of damage or
26 damage repairs made.
27 (b) Damage repair cost calculation.--In determining whether
28 damage disclosure is required, repair costs shall be calculated
29 at the vehicle dealer's retail charge on the date the repairs
30 were made for:
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1 (1) Parts.
2 (2) Labor multiplied by the time taken to make the
3 repairs as established by a time allowance from a repair
4 manual utilized by the dealer.
5 All parts shall be replaced only with new, original equipment
6 manufacturer parts. Replacement of any permanently sealed-glass
7 window shall be disclosed to the purchaser regardless of the
8 cost of the replacement window. The value of any permanently
9 sealed-glass window replacement shall not be included in the
10 calculation process to determine whether damage disclosure is
11 required under this act. The value of any portion of a motor
12 home designed, used or maintained primarily for human habitation
13 shall not be included in the calculation process to determine
14 whether damage disclosure is required under this act.
15 (c) Form for damage disclosure notice.--If damage disclosure
16 to the purchaser is required under this act, the purchaser prior
17 to the time of sale shall be provided with a fully completed
18 copy of a damage disclosure form which shows the date of the
19 disclosure and the name and address of the seller, indicates
20 whether any manufacturer's warranty applicable to the vehicle is
21 affected by the damage or damage repairs and whether the damage
22 or damage repairs are covered by any manufacturer's warranty and
23 contains in immediate proximity to the space provided for the
24 signature of the purchaser in boldface type of a minimum size of
25 ten points, a statement in substantially the following form:
26 New Vehicle Damage Disclosure Notice
27 In accordance with the Commonwealth of Pennsylvania's New Motor
28 Vehicle Damage Disclosure Act and in connection with the
29 purchase from __________________ (Dealer) of the motor
30 vehicle described as follows:
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1 Year____Make___________________Type___________________
2 Serial No._____________________Stock No.______________
3 I/we the undersigned, hereby acknowledge that Dealer
4 has disclosed to me/us before I/we agreed to purchase
5 the above-listed vehicle that the vehicle has been
6 subjected to postmanufacturing damage as follows:
7 Damage Description: __________________________________
8 ______________________________________________________
9 ______________________________________________________
10 ______________________________________________________
11 ______________________________________________________
12 ______________________________________________________
13 The above-disclosed damage or repaired damage is:
14 ( ) covered ( ) not covered (check one)
15 by the manufacturer's warranty.
16 The above-disclosed damage or repaired damage has
17 (check one):
18 ( ) no effect on the manufacturer's warranty
19 ( ) the following effect on the manufacturer's warranty
20 (specify) ____________________________________________
21 ______________________________________________________
22 I/we further acknowledge that the listed damage has
23 been repaired to my/our satisfaction.
24 Date: ________
25 ______________________ __________________________
26 Signature of Purchaser Signature of Co-purchaser
27 ______________________ __________________________
28 Printed Name Printed Name
29 __________________________________
30 Signature of Dealer Representative
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1 Section 4. No rescission of sale.
2 If disclosure is not required under this act, a purchaser may
3 not revoke or rescind a sales contract and is not entitled to
4 other damages or relief under section 8 due solely to the fact
5 that the vehicle was damaged and repaired prior to the sale.
6 Section 5. Other statutory rights reserved.
7 Nothing in this act shall diminish any other rights or
8 remedies which the purchaser has under the act of March 28, 1984
9 (P.L.150, No.28), known as the Automobile Lemon Law, as amended,
10 reenacted or superseded. If damage is not required to be
11 disclosed under this act, nothing in this act shall diminish any
12 rights or remedies which the purchaser has for that damage under
13 13 Pa.C.S. (relating to commercial code).
14 Section 6. Board of Vehicles Act inapplicable.
15 Section 10(b) of the act of December 22, 1983 (P.L.306,
16 No.84), known as the Board of Vehicles Act, shall not apply and
17 is superseded by this act.
18 Section 7. Exemption.
19 The provisions of this act shall not apply to manufacturers,
20 distributors or dealers of manufactured housing or
21 manufacturers, distributors or dealers of motorcycles.
22 Section 8. Application of Consumer Protection Law.
23 A violation of this act shall constitute a violation under
24 the act of December 17, 1968 (P.L.1224, No.387), known as the
25 Unfair Trade Practices and Consumer Protection Law, and shall be
26 subject to the enforcement provisions and private rights of
27 action contained in that act.
28 Section 9. Effective date.
29 This act shall take effect in 60 days.
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