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                                                      PRINTER'S NO. 1584

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

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
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     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
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     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
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     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.




















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