Bill Text: IL HB1560 | 2017-2018 | 100th General Assembly | Engrossed


Bill Title: Amends the Illinois Securities Law of 1953. Makes a technical change in a Section concerning definitions.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed) 2017-05-30 - Senate Floor Amendment No. 2 Motion to Concur Recommends Be Adopted Consumer Protection Committee; 005-000-000 [HB1560 Detail]

Download: Illinois-2017-HB1560-Engrossed.html



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1 AN ACT concerning business.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Consumer Fraud and Deceptive Business
5Practices Act is amended by changing Section 2L as follows:
6 (815 ILCS 505/2L) (from Ch. 121 1/2, par. 262L)
7 (Text of Section before amendment by P.A. 99-768)
8 Sec. 2L. Any retail sale of a motor vehicle made after
9January 1, 1968 to a consumer by a new motor vehicle dealer or
10used motor vehicle dealer within the meaning of Chapter 5 of
11the Illinois Vehicle Code is made subject to this Section.
12 (a) The dealer is liable to the purchasing consumer for the
13following share of the cost of the repair of Power Train
14components for a period of 30 days from date of delivery,
15unless the repairs have become necessary by abuse, negligence,
16or collision. The burden of establishing that a claim for
17repairs is not within this Section shall be on the selling
18dealer. The dealer's share of such repair costs is:
19 (1) in the case of a motor vehicle which is not more than 2
20years old, 50%;
21 (2) in the case of a motor vehicle which is 2 or more, but
22less than 3 years old, 25%;
23 (3) in the case of a motor vehicle which is 3 or more, but

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

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1Certificate of Title or Registration Certificate. Vehicles
2shall be designated as current year models, one year old, 2
3year old, and so forth according to the time that has elapsed
4since January 1 of the appropriate model year so designated.
5 (f) This Section does not preclude the issuance of a
6warranty or guarantee by a motor vehicle dealer or motor car
7manufacturer that meets or exceeds the basic provisions of
8paragraph (a).
9 (g) After the effective date of this amendatory Act of
101989, executives' and officials' cars when so advertised shall
11have been used exclusively by executives of the parent motor
12car manufacturer's personnel or by an executive of an
13authorized dealer in the same make of car. These cars, so
14advertised, shall not have been sold to a member of the public
15prior to the appearance of the advertisement.
16 Any person who violates this Section commits an unlawful
17practice within the meaning of this Act.
18(Source: P.A. 86-351; 87-1140.)
19 (Text of Section after amendment by P.A. 99-768)
20 Sec. 2L. Used motor vehicles; modification or disclaimer of
21implied warranty of merchantability limited.
22 (a) Any retail sale of a used motor vehicle made after the
23effective date of this amendatory Act of the 99th General
24Assembly to a consumer by a licensed vehicle dealer within the
25meaning of Chapter 5 of the Illinois Vehicle Code or by an

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1auction company at an auction that is open to the general
2public is made subject to this Section.
3 (b) This Section does not apply to vehicles with more than
4150,000 miles at the time of sale. In addition, this Section
5does not apply to vehicles with titles that have been branded
6"rebuilt" or "flood".
7 (c) Any sale of a used motor vehicle as described in
8subsection (a) may not exclude, modify, or disclaim the implied
9warranty of merchantability prescribed in Section 2-314 of the
10Uniform Commercial Code or limit the remedies for a breach of
11the warranty before midnight of the 15th calendar day after
12delivery of a used motor vehicle or until a used motor vehicle
13is driven 500 miles after delivery, whichever is earlier. In
14calculating time under this Section, a day on which the
15warranty is breached and all subsequent days in which the used
16motor vehicle fails to conform with the implied warranty of
17merchantability are excluded. In calculating distance under
18this Section, the miles driven to obtain or in connection with
19the repair, servicing, or testing of a used motor vehicle that
20fails to conform with the implied warranty of merchantability
21are excluded. An attempt to exclude, modify, or disclaim the
22implied warranty of merchantability or to limit the remedies
23for a breach of the warranty in violation of this Section
24renders a purchase agreement voidable at the option of the
25purchaser.
26 (d) An implied warranty of merchantability is met if a used

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1motor vehicle functions free of a defect in a power train
2component. As used in this Section, "power train component"
3means the engine block, head, all internal engine parts, oil
4pan and gaskets, water pump, intake manifold, transmission, and
5all internal transmission parts, torque converter, drive
6shaft, universal joints, rear axle and all rear axle internal
7parts, and rear wheel bearings.
8 (e) The implied warranty of merchantability expires at
9midnight of the 15th calendar day after delivery of a used
10motor vehicle or when a used motor vehicle is driven 500 miles
11after delivery, whichever is earlier. In calculating time, a
12day on which the implied warranty of merchantability is
13breached is excluded and all subsequent days in which the used
14motor vehicle fails to conform with the warranty are also
15excluded. In calculating distance, the miles driven to or by
16the seller to obtain or in connection with the repair,
17servicing, or testing of a used motor vehicle that fails to
18conform with the implied warranty of merchantability are
19excluded. An implied warranty of merchantability does not
20extend to damage that occurs after the sale of the used motor
21vehicle that results from:
22 (1) off-road use;
23 (2) racing;
24 (3) towing;
25 (4) abuse;
26 (5) misuse;

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1 (6) neglect;
2 (7) failure to perform regular maintenance; and
3 (8) failure to maintain adequate oil, coolant, and
4 other required fluids or lubricants.
5 (f) If the implied warranty of merchantability described in
6this Section is breached, the consumer shall give reasonable
7notice to the seller no later than 2 business days after the
8end of the statutory warranty period. Before the consumer
9exercises another remedy pursuant to Article 2 of the Uniform
10Commercial Code, the seller shall have a reasonable opportunity
11to repair the used motor vehicle. The consumer shall pay
12one-half of the cost of the first 2 repairs necessary to bring
13the used motor vehicle into compliance with the warranty. The
14payments by the consumer are limited to a maximum payment of
15$100 for each repair; however, the consumer shall only be
16responsible for a maximum payment of $100 if the consumer
17brings in the vehicle for a second repair for the same defect.
18Reasonable notice as defined in this Section shall include, but
19not be limited to:
20 (1) text, provided the seller has provided the consumer
21 with a cell phone number;
22 (2) phone call or message to the seller's business
23 phone number provided on the seller's bill of sale for the
24 purchase of the motor vehicle;
25 (3) in writing to the seller's address provided on the
26 seller's bill of sale for the purchase of the motor

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1 vehicle;
2 (4) in person at the seller's address provided on the
3 seller's bill of sale for the purchase of the motor
4 vehicle.
5 (g) The maximum liability of a seller for repairs pursuant
6to this Section is limited to the purchase price paid for the
7used motor vehicle, to be refunded to the consumer or lender,
8as applicable, in exchange for return of the vehicle.
9 (h) An agreement for the sale of a used motor vehicle
10subject to this Section is voidable at the option of the
11consumer, unless it contains on its face or in a separate
12document the following conspicuous statement printed in
13boldface 10-point or larger type set off from the body of the
14agreement:
15 "Illinois law requires that this vehicle will be free of a
16defect in a power train component for 15 days or 500 miles
17after delivery, whichever is earlier, except with regard to
18particular defects disclosed on the first page of this
19agreement. "Power train component" means the engine block,
20head, all internal engine parts, oil pan and gaskets, water
21pump, intake manifold, transmission, and all internal
22transmission parts, torque converter, drive shaft, universal
23joints, rear axle and all rear axle internal parts, and rear
24wheel bearings. You (the consumer) will have to pay up to $100
25for each of the first 2 repairs if the warranty is violated.".
26 (i) The inclusion in the agreement of the statement

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1prescribed in subsection (h) of this Section does not create an
2express warranty.
3 (j) A consumer of a used motor vehicle may waive the
4implied warranty of merchantability only for a particular
5defect in the vehicle including, but not limited to, a rebuilt
6or flood-branded title and only if all of the following
7conditions are satisfied:
8 (1) the seller subject to this Section fully and
9 accurately discloses to the consumer that because of
10 circumstances unusual to the business, the used motor
11 vehicle has a particular defect;
12 (2) the consumer agrees to buy the used motor vehicle
13 after disclosure of the defect; and
14 (3) before the sale, the consumer indicates agreement
15 to the waiver by signing and dating the following
16 conspicuous statement that is printed on the first page of
17 the sales agreement or on a separate document in boldface
18 10-point or larger type and that is written in the language
19 in which the presentation was made:
20 "Attention consumer: sign here only if the seller has
21 told you that this vehicle has the following problem or
22 problems and you agree to buy the vehicle on those terms:
23 1. ......................................................
24 2. ..................................................
25 3. ...................................................".
26 (k) It shall be an affirmative defense to any claim under

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1this Section that:
2 (1) an alleged nonconformity does not substantially
3 impair the use and market value of the motor vehicle;
4 (2) a nonconformity is the result of abuse, neglect, or
5 unauthorized modifications or alterations of the motor
6 vehicle;
7 (3) a claim by a consumer was not filed in good faith;
8 or
9 (4) any other affirmative defense allowed by law.
10 (l) Other than the 15-day, 500-mile implied warranty of
11merchantability identified herein, a seller subject to this
12Section is not required to provide any further express or
13implied warranties to a purchasing consumer unless:
14 (1) the seller is required by federal or State law to
15 provide a further express or implied warranty; or
16 (2) the seller fails to fully inform and disclose to
17 the consumer that the vehicle is being sold without any
18 further express or implied warranties, other than the 15
19 day, 500 mile implied warranty of merchantability
20 identified in this Section.
21 (m) This Section does not apply to the sale of antique
22vehicles, as defined in the Illinois Vehicle Code, or to
23collector motor vehicles.
24 Any person who violates this Section commits an unlawful
25practice within the meaning of this Act.
26(Source: P.A. 99-768, eff. 7-1-17.)

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1 Section 95. No acceleration or delay. Where this Act makes
2changes in a statute that is represented in this Act by text
3that is not yet or no longer in effect (for example, a Section
4represented by multiple versions), the use of that text does
5not accelerate or delay the taking effect of (i) the changes
6made by this Act or (ii) provisions derived from any other
7Public Act.
8 Section 99. Effective date. This Act takes effect upon
9becoming law.
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