PRINTER'S NO. 410
No. 393 Session of 2001
INTRODUCED BY CLARK, ADOLPH, BARRAR, BEBKO-JONES, BELARDI,
BELFANTI, BROWNE, CALTAGIRONE, CAPPABIANCA, CIVERA, CLYMER,
L. I. COHEN, CORRIGAN, DeLUCA, FAIRCHILD, FEESE, FRANKEL,
FREEMAN, GRUCELA, HALUSKA, HENNESSEY, HESS, HORSEY, KENNEY,
LAUGHLIN, LEH, LYNCH, MANDERINO, McCALL, MICHLOVIC,
R. MILLER, NAILOR, PETRARCA, READSHAW, ROHRER, ROSS, SATHER,
SCHRODER, SCRIMENTI, SHANER, B. SMITH, STABACK, STERN,
E. Z. TAYLOR, TIGUE, TRAVAGLIO, TRELLO, TULLI, WALKO,
WANSACZ, WASHINGTON, WILT, WOJNAROSKI AND YOUNGBLOOD,
JANUARY 31, 2001
REFERRED TO COMMITTEE ON FINANCE, JANUARY 31, 2001
AN ACT
1 Amending the act of March 28, 1984 (P.L.150, No.28), entitled
2 "An act relating to the rights of purchasers of defective new
3 motor vehicles," further providing for refunds.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Section 5 of the act of March 28, 1984 (P.L.150,
7 No.28), known as the Automobile Lemon Law, is amended to read:
8 Section 5. Manufacturer's duty for refund or replacement.
9 (a) Option of purchaser.--
10 (1) If the manufacturer fails to repair or correct a
11 nonconformity after a reasonable number of attempts, the
12 manufacturer shall, at the option of the purchaser, replace
13 the motor vehicle with a comparable motor vehicle of equal
14 value or accept return of the vehicle from the purchaser and
1 refund to the purchaser the full purchase price, including
2 all collateral charges, less a reasonable allowance for the
3 purchaser's use of the vehicle not exceeding 10c/ per mile
4 driven or 10% of the purchase price of the vehicle, whichever
5 is less. Refunds shall be made to the purchaser and
6 lienholder, if any, as their interests may appear. A
7 reasonable allowance for use shall be that amount directly
8 attributable to use by the purchaser prior to his first
9 report of the nonconformity to the manufacturer. In the event
10 the consumer elects a refund, payment shall be made within 30
11 days of such election.
12 (2) A consumer shall not be entitled to a refund or
13 replacement if the nonconformity does not substantially
14 impair the use, value or safety of the vehicle or the
15 nonconformity is the result of abuse, neglect or modification
16 or alteration of the motor vehicle by the purchaser.
17 (b) Sales tax.--A refund paid to the purchaser under this
18 section shall be deemed a trade-in for the purpose of computing
19 sales tax under Article II of the act of March 4, 1971 (P.L.6,
20 No.2), known as the Tax Reform Code of 1971, if applied to the
21 purchase of another motor vehicle within 30 days of its receipt.
22 Section 2. The addition of section 5(b) of the act shall
23 apply to refunds paid on or after January 1, 2001.
24 Section 3. This act shall take effect immediately.
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