PRINTER'S NO. 1584
No. 1242 Session of 1998
INTRODUCED BY SALVATORE, SLOCUM, COSTA, THOMPSON, AFFLERBACH, TOMLINSON, DELP, MADIGAN, KASUNIC, MOWERY, PICCOLA, BRIGHTBILL, MURPHY, WENGER, LEMMOND, GREENLEAF AND SCHWARTZ, JANUARY 21, 1998
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE, JANUARY 21, 1998
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
1 has not been sold, bargained, exchanged or given away to an 2 ultimate purchaser. A transfer between dealers for the purpose 3 of resale shall not be considered as a transfer to an ultimate 4 purchaser. 5 Section 3. New motor vehicle damage disclosure. 6 (a) Notice to purchaser.--The selling vehicle dealer shall 7 notify the purchaser of a new vehicle in writing at the time of 8 sale of any damage or damage repairs incurred by the new 9 vehicle, regardless of whether or not the damaged portion was 10 repaired or replaced, which exceeds the greater of $500 or 3% of 11 the manufacturer's suggested retail price. Damage exceeding the 12 disclosure amount shall be disclosed by the vehicle dealer when: 13 (1) the manufacturer or its agent, in accordance with 14 the act of December 22, 1983 (P.L.306, No.84), known as the 15 Board of Vehicles Act, discloses that, at any time after the 16 manufacturing process is complete, damage occurred or damage 17 repairs were made; 18 (2) the vehicle dealer knows or should know based on 19 facts indicating that other damage or damage repair exists in 20 addition to the damage or repairs required to be disclosed 21 under paragraph (1); or 22 (3) the combined total of damage or damage repairs made 23 under paragraphs (1) and (2) exceeds the greater of $500 or 24 3% of the manufacturer's suggested retail price. 25 A vehicle dealer shall not misrepresent or mislead a purchaser 26 if the purchaser inquires about the existence of damage or 27 damage repairs made. 28 (b) Damage repair cost calculation.--In determining whether 29 damage disclosure is required, repair costs shall be calculated 30 at the vehicle dealer's retail charge on the date the repairs 19980S1242B1584 - 2 -
1 were made for: 2 (1) Parts. 3 (2) Labor multiplied by the time taken to make the 4 repairs as established by a time allowance from a repair 5 manual utilized by the dealer. 6 All parts shall be replaced only with new, original equipment 7 manufacturer parts. Replacement of any permanently sealed-glass 8 window shall be disclosed to the purchaser regardless of the 9 cost of the replacement window. The value of any permanently 10 sealed-glass window replacement shall not be included in the 11 calculation process to determine whether damage disclosure is 12 required under this act. The value of any portion of a motor 13 home designed, used or maintained primarily for human habitation 14 shall not be included in the calculation process to determine 15 whether damage disclosure is required under this act. 16 (c) Form for damage disclosure notice.--If damage disclosure 17 to the purchaser is required under this act, the purchaser prior 18 to the time of sale shall be provided with a fully completed 19 copy of a damage disclosure form which shows the date of the 20 disclosure and the name and address of the seller, indicates 21 whether any manufacturer's warranty applicable to the vehicle is 22 affected by the damage or damage repairs and whether the damage 23 or damage repairs are covered by any manufacturer's warranty and 24 contains in immediate proximity to the space provided for the 25 signature of the purchaser in boldface type of a minimum size of 26 ten points, a statement in substantially the following form: 27 New Vehicle Damage Disclosure Notice 28 In accordance with the Commonwealth of Pennsylvania's New Motor 29 Vehicle Damage Disclosure Act and in connection with the 30 purchase from __________________ (Dealer) of the motor 19980S1242B1584 - 3 -
1 vehicle described 2 as follows: 3 Year____Make___________________Type___________________ 4 Serial No._____________________Stock No.______________ 5 I/we the undersigned, hereby acknowledge that Dealer 6 has disclosed to me/us before I/we agreed to purchase 7 the above listed vehicle that the vehicle has been 8 subjected to postmanufacturing damage as follows: 9 Damage Description: __________________________________ 10 ______________________________________________________ 11 ______________________________________________________ 12 ______________________________________________________ 13 ______________________________________________________ 14 ______________________________________________________ 15 The above disclosed damage or repaired damage is: 16 ( ) covered ( ) not covered (check one) 17 by the manufacturer's warranty. 18 The above disclosed damage or repaired damage has 19 (check one): 20 ( ) no effect on the manufacturer's warranty 21 ( ) the following effect on the manufacturer's warranty 22 (specify) ____________________________________________ 23 ______________________________________________________ 24 I/we further acknowledge that the listed damage has 25 been repaired to my/our satisfaction. 26 Date: ________ 27 ______________________ __________________________ 28 Signature of Purchaser Signature of Co-Purchaser 29 ______________________ __________________________ 30 Printed Name Printed Name 19980S1242B1584 - 4 -
1 __________________________________ 2 Signature of Dealer Representative 3 Section 4. No rescission of sale. 4 If disclosure is not required under this act, a purchaser may 5 not revoke or rescind a sales contract and is not entitled to 6 other damages or relief under section 8 due solely to the fact 7 that the vehicle was damaged and repaired prior to the sale. 8 Section 5. Other statutory rights reserved. 9 Nothing in this act shall diminish any other rights or 10 remedies which the purchaser has under the act of March 28, 1984 11 (P.L.150, No.28), known as the Automobile Lemon Law, as amended, 12 reenacted or superseded. If damage is not required to be 13 disclosed under this act, nothing in this act shall diminish any 14 rights or remedies which the purchaser has for that damage under 15 13 Pa.C.S. (relating to commercial code). 16 Section 6. Board of Vehicles Act inapplicable. 17 Section 10(b) of the act of December 22, 1983 (P.L.306, 18 No.84), known as the Board of Vehicles Act, shall not apply and 19 is superseded by this act. 20 Section 7. Exemption. 21 The provisions of this act shall not apply to manufacturers, 22 distributors or dealers of manufactured housing, or 23 manufacturers, distributors or dealers of motorcycles. 24 Section 8. Application of Consumer Protection Law. 25 A violation of this act shall constitute a violation under 26 the act of December 17, 1968 (P.L.1224, No.387), known as the 27 Unfair Trade Practices and Consumer Protection Law, and shall be 28 subject to the enforcement provisions and private rights of 29 action contained in that act. 30 Section 9. Effective date. 19980S1242B1584 - 5 -
1 This act shall take effect in 60 days. A5L12JS/19980S1242B1584 - 6 -