PRINTER'S NO. 2227
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
1405
Session of
2015
INTRODUCED BY BROWNE, NOVEMBER 16, 2016
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
NOVEMBER 16, 2016
AN ACT
Amending the act of March 28, 1984 (P.L.150, No.28), entitled,
as amended, "An act relating to the rights of purchasers of
defective new motor vehicles," further providing for
manufacturer's duty for refund or replacement.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 5 of the act of March 28, 1984 (P.L.150,
No.28), known as the Automobile Lemon Law, amended December 13,
2001 (P.L.868, No.94), is amended to read:
Section 5. Manufacturer's duty for refund or replacement.
(a) Option of purchaser.--
(1) If the manufacturer fails to repair or correct a
nonconformity after a reasonable number of attempts, the
manufacturer shall, at the option of the purchaser, replace
the motor vehicle with a comparable motor vehicle of equal
value or accept return of the vehicle from the purchaser and
refund to the purchaser the full purchase price or lease
price, including all collateral charges, less a reasonable
allowance for the purchaser's use of the vehicle not
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exceeding 10ยข per mile driven or 10% of the purchase price or
lease price of the vehicle, whichever is less. Refunds shall
be made to the purchaser and lienholder, if any, as their
interests may appear. A reasonable allowance for use shall be
that amount directly attributable to use by the purchaser
prior to his first report of the nonconformity to the
manufacturer. In the event the consumer elects a refund,
payment shall be made within 30 days of such election.
(2) A consumer shall not be entitled to a refund or
replacement if the nonconformity does not substantially
impair the use, value or safety of the vehicle or the
nonconformity is the result of abuse, neglect or modification
or alteration of the motor vehicle by the purchaser.
(b) Sales tax.--A refund paid to the purchaser under this
section shall be deemed a trade-in for the purpose of computing
sales tax under Article II of the act of March 4, 1971 (P.L.6,
No.2) , known as the Tax Reform Code of 1971, if applied to the
purchase of another motor vehicle within 30 days of its receipt.
Section 2. The addition of section 5(b) of the act shall
apply to refunds paid on or after January 1, 2017.
Section 3. This act shall take effect immediately.
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