HB3746 Engrossed LRB099 07271 JLS 27375 b
1		AN ACT concerning motor vehicles.
2		Be it enacted by the People of the State of Illinois,
3		represented in the General Assembly:
4		Section 5. The Consumer Fraud and Deceptive Business
5		Practices Act is amended by changing Section 2L as follows:
6		(815 ILCS 505/2L) (from Ch. 121 1/2, par. 262L)
7		Sec. 2L. Used motor vehicles; modification or disclaimer of
8		implied warranty of merchantability limited.
9		(a) Any retail sale of a motor vehicle made after the
10		effective date of this amendatory Act of the 99th General
11		Assembly January 1, 1968 to a consumer by a new motor vehicle
12		dealer or used motor vehicle dealer within the meaning of
13		Chapter 5 of the Illinois Vehicle Code is made subject to this
14		Section.
15		(b) Any motor vehicle sale conducted by a motor vehicle
16		dealer licensed under Section 5-102 of the Illinois Vehicle
17		Code or by an auction company at an auction that is open to the
18		general public may not exclude, modify, or disclaim the implied
19		warranty of merchantability prescribed in Section 2-314 of the
20		Uniform Commercial Code or limit the remedies for a breach of
21		the warranty before midnight of the 15th calendar day after
22		delivery of a used motor vehicle or until a used motor vehicle
23		is driven 500 miles after delivery, whichever is earlier. In

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1		calculating time under this Section, a day on which the
2		warranty is breached and all subsequent days in which the used
3		motor vehicle fails to conform with the implied warranty of
4		merchantability are excluded. In calculating distance under
5		this Section, the miles driven to obtain or in connection with
6		the repair, servicing, or testing of a used motor vehicle that
7		fails to conform with the implied warranty of merchantability
8		are excluded. An attempt to exclude, modify, or disclaim the
9		implied warranty of merchantability or to limit the remedies
10		for a breach of the warranty in violation of this Section
11		renders a purchase agreement voidable at the option of the
12		purchaser.
13		(c) An implied warranty of merchantability is met if a used
14		motor vehicle functions substantially free of a defect that
15		significantly limits the use of the used motor vehicle for the
16		ordinary purpose of transportation on any public highway. The
17		implied warranty of merchantability expires at midnight of the
18		15th calendar day after delivery of a used motor vehicle or
19		until a used motor vehicle is driven 500 miles after delivery,
20		whichever is earlier. In calculating time, a day on which the
21		implied warranty of merchantability is breached is excluded and
22		all subsequent days in which the used motor vehicle fails to
23		conform with the warranty are also excluded. In calculating
24		distance, the miles driven to obtain or in connection with the
25		repair, servicing, or testing of a used motor vehicle that
26		fails to conform with the implied warranty of merchantability

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1		are excluded.
2		(d) An implied warranty of merchantability does not extend
3		to damage that occurs after the sale of the used motor vehicle
4		that results from:
5		(1) off-road use;
6		(2) racing;
7		(3) towing;
8		(4) abuse;
9		(5) misuse;
10		(6) neglect;
11		(7) failure to perform regular maintenance; and
12		(8) failure to maintain adequate oil, coolant, and
13		other required fluids or lubricants.
14		(e) If the implied warranty of merchantability described in
15		this Section is breached, the consumer shall give reasonable
16		notice to the seller within 15 days after the date of the
17		breach. Before the consumer exercises another remedy pursuant
18		to Article 2 of the Uniform Commercial Code, the seller shall
19		have a reasonable opportunity to repair the used motor vehicle.
20		The consumer shall pay one-half of the cost of the first 2
21		repairs necessary to bring the used motor vehicle into
22		compliance with the warranty. The payments by the consumer are
23		limited to a maximum payment of $25 for each repair.
24		(f) The maximum liability of a seller for repairs pursuant
25		to this Section is limited to the purchase price paid for the
26		used motor vehicle, to be refunded to the consumer or lender,

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1		as applicable, in exchange for return of the vehicle.
2		(g) An agreement for the sale of a used motor vehicle by a
3		used motor vehicle dealer subject to this Section is voidable
4		at the option of the consumer unless it contains on its face
5		the following conspicuous statement printed in boldface,
6		10-point or larger type set off from the body of the agreement:
7		"Illinois law requires that this vehicle will be fit for
8		the ordinary purposes for which the vehicle is used for 15 days
9		or 500 miles after delivery, whichever is earlier, except with
10		regard to particular defects disclosed on the first page of
11		this agreement. You (the consumer) will have to pay up to $25
12		for each of the first 2 repairs if the warranty is violated.".
13		(h) The inclusion in the agreement of the statement
14		prescribed in subsection (g) of this Section does not create an
15		express warranty.
16		(i) A consumer of a used motor vehicle may waive the
17		implied warranty of merchantability only for a particular
18		defect in the vehicle and only if all of the following
19		conditions are satisfied:
20		(1) the motor vehicle dealer subject to this Section
21		fully and accurately discloses to the consumer that because
22		of circumstances unusual to the business of the used motor
23		vehicle dealer, the used motor vehicle has a particular
24		defect;
25		(2) the consumer agrees to buy the used motor vehicle
26		after disclosure of the defect; and

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1		(3) before the sale, the consumer indicates agreement
2		to the waiver by signing and dating the following
3		conspicuous statement that is printed on the first page of
4		the sales agreement or on a separate document in boldface
5		10-point or larger type and that is written in the language
6		in which the presentation was made:
7		"Attention consumer: sign here only if the dealer has told
8		you that this vehicle has the following problem or problems and
9		you agree to buy the vehicle on those terms:
10		1.........................................................
11		2.........................................................
12		3.........................................................".
13		(j) A used motor vehicle dealer subject to this Section has
14		the burden to prove by a preponderance of the evidence that the
15		dealer complied with subsection (i) of this Section.
16		(k) A consumer or seller that is aggrieved by a transaction
17		pursuant to this Section and that seeks a legal remedy shall
18		pursue an appropriate remedy prescribed in Article 2 of the
19		Uniform Commercial Code and shall comply with the requirements
20		prescribed in that Article.
21		(l) It shall be an affirmative defense to any claim under
22		this Section that:
23		(1) an alleged nonconformity does not substantially
24		impair the use and market value of the motor vehicle;
25		(2) a nonconformity is the result of abuse, neglect, or
26		unauthorized modifications or alterations of the motor

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1		vehicle;
2		(3) a claim by a consumer was not filed in good faith;
3		or
4		(4) any other affirmative defense allowed by law.
5		(m) Other than the 15 day, 500 mile implied warranty of
6		merchantability identified herein, a motor vehicle dealer is
7		not required to provide any further express or implied
8		warranties to a purchasing consumer unless:
9		(1) the motor vehicle dealer is required by federal or
10		State law to provide a further express of implied warranty,
11		or
12		(2) the motor vehicle dealer fully informs and
13		discloses to the consumer that the vehicle is being sold
14		without any further express or implied warranties, other
15		than the 15 day mile implied warranty of merchantability
16		identified in this Section.
17		(n) This Section does not apply to the sale of antique
18		vehicles, as defined in the Illinois Vehicle Code, or to
19		collector motor vehicles.
20		(a) The dealer is liable to the purchasing consumer for the
21		following share of the cost of the repair of Power Train
22		components for a period of 30 days from date of delivery,
23		unless the repairs have become necessary by abuse, negligence,
24		or collision. The burden of establishing that a claim for
25		repairs is not within this Section shall be on the selling
26		dealer. The dealer's share of such repair costs is:

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1		(1) in the case of a motor vehicle which is not more than 2
2		years old, 50%;
3		(2) in the case of a motor vehicle which is 2 or more, but
4		less than 3 years old, 25%;
5		(3) in the case of a motor vehicle which is 3 or more, but
6		less than 4 years old, 10%; and
7		(4) in the case of a motor vehicle which is 4 or more years
8		old, none.
9		(b) Notwithstanding the foregoing, such a dealer and a
10		purchasing consumer may negotiate a sale and purchase that is
11		not subject to this Section if there is stamped on any purchase
12		order, contract, agreement, or other instrument to be signed by
13		the consumer as a part of that transaction, in at least
14		10-point bold type immediately above the signature line, the
15		following:
16		"THIS VEHICLE IS SOLD AS IS WITH NO WARRANTY
17		AS TO MECHANICAL CONDITION"
18		(c) As used in this Section, "Power Train components" means
19		the engine block, head, all internal engine parts, oil pan and
20		gaskets, water pump, intake manifold, transmission, and all
21		internal transmission parts, torque converter, drive shaft,
22		universal joints, rear axle and all rear axle internal parts,
23		and rear wheel bearings.
24		(d) The repair liability means that the dealer will make
25		necessary Power Train component repairs in his shop, or in the
26		shop of his service affiliate, on the basis of his regular list

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1		price charge for parts and labor, where the flat rate list
2		price does not exceed 50% of the selling price of the vehicle
3		at the time repairs are requested.
4		(e) The age of the vehicle shall be measured according to
5		the manufacturer's model year designation as shown on the
6		Certificate of Title or Registration Certificate. Vehicles
7		shall be designated as current year models, one year old, 2
8		year old, and so forth according to the time that has elapsed
9		since January 1 of the appropriate model year so designated.
10		(f) This Section does not preclude the issuance of a
11		warranty or guarantee by a motor vehicle dealer or motor car
12		manufacturer that meets or exceeds the basic provisions of
13		paragraph (a).
14		(g) After the effective date of this amendatory Act of
15		1989, executives' and officials' cars when so advertised shall
16		have been used exclusively by executives of the parent motor
17		car manufacturer's personnel or by an executive of an
18		authorized dealer in the same make of car. These cars, so
19		advertised, shall not have been sold to a member of the public
20		prior to the appearance of the advertisement.
21		Any person who violates this Section commits an unlawful
22		practice within the meaning of this Act.
23		(Source: P.A. 86-351; 87-1140.)