Bill Text: IL HB4708 | 2017-2018 | 100th General Assembly | Introduced

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Bill Title: Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that the prohibition against the modification or disclaimer of an implied warranty of merchantability regarding certain motor vehicle components for 15 days after the retail sale of a used vehicle to a consumer by a licensed dealer does not apply to a vehicle sold at an auction that is open to the general public if the auction company has conducted a mechanical inspection of the vehicle and given notice of any defects to prospective purchasers. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2019-01-08 - Session Sine Die [HB4708 Detail]

Download: Illinois-2017-HB4708-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 HB4708 Introduced , by Rep. Sue Scherer SYNOPSIS AS INTRODUCED:
815 ILCS 505/2L
Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that the prohibition against the modification or disclaimer of an implied warranty of merchantability regarding certain motor vehicle components for 15 days after the retail sale of a used vehicle to a consumer by a licensed dealer does not apply to a vehicle sold at an auction that is open to the general public if the auction company has conducted a mechanical inspection of the vehicle and given notice of any defects to prospective purchasers. Effective immediately.
LRB100 16738 JLS 31878 b
A BILL FOR
HB4708 LRB100 16738 JLS 31878 b
AN ACT concerning business.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Consumer Fraud and Deceptive Business
Practices Act is amended by changing Section 2L as follows:
(815 ILCS 505/2L)
(Text of Section before amendment by P.A. 100-512)
Sec. 2L. Used motor vehicles; modification or disclaimer of
implied warranty of merchantability limited.
(a) Any retail sale of a used motor vehicle made after July
1, 2017 (the effective date of Public Act 99-768) this
amendatory Act of the 99th General Assembly to a consumer by a
licensed vehicle dealer within the meaning of Chapter 5 of the
Illinois Vehicle Code or by an auction company at an auction
that is open to the general public is made subject to this
Section.
(b) This Section does not apply to any of the following:
(1) a vehicle with more than 150,000 miles at the time
of sale;
(2) a vehicle with a title that has been branded
"rebuilt" or "flood";
(3) a vehicle with a gross vehicle weight rating of
8,000 pounds or more; or

HB4708 - 2 - LRB100 16738 JLS 31878 b
(4) a vehicle that is an antique vehicle, as defined in
the Illinois Vehicle Code, or that is a collector motor
vehicle; or .
(5) a vehicle sold at an auction that is open to the
general public, provided that the auction company has
conducted a mechanical inspection of the vehicle and
provided notice of any defects to the vehicle to
prospective purchasers.
(b-5) This Section does not apply to the sale of any
vehicle for which the dealer offers an express warranty that
provides coverage that is equal to or greater than the limited
implied warranty of merchantability required under this
Section 2L.
(c) Except as otherwise provided in this Section 2L, any
sale of a used motor vehicle as described in subsection (a) may
not exclude, modify, or disclaim the implied warranty of
merchantability created under this Section 2L or limit the
remedies for a breach of the warranty hereunder before midnight
of the 15th calendar day after delivery of a used motor vehicle
or until a used motor vehicle is driven 500 miles after
delivery, whichever is earlier. In calculating time under this
Section, a day on which the warranty is breached and all
subsequent days in which the used motor vehicle fails to
conform with the implied warranty of merchantability are
excluded. In calculating distance under this Section, the miles
driven to obtain or in connection with the repair, servicing,

HB4708 - 3 - LRB100 16738 JLS 31878 b
or testing of a used motor vehicle that fails to conform with
the implied warranty of merchantability are excluded. An
attempt to exclude, modify, or disclaim the implied warranty of
merchantability or to limit the remedies for a breach of the
warranty in violation of this Section renders a purchase
agreement voidable at the option of the purchaser.
(d) An implied warranty of merchantability is met if a used
motor vehicle functions for the purpose of ordinary
transportation on the public highway and substantially free of
a defect in a power train component. As used in this Section,
"power train component" means the engine block, head, all
internal engine parts, oil pan and gaskets, water pump, intake
manifold, transmission, and all internal transmission parts,
torque converter, drive shaft, universal joints, rear axle and
all rear axle internal parts, and rear wheel bearings.
(e) The implied warranty of merchantability expires at
midnight of the 15th calendar day after delivery of a used
motor vehicle or when a used motor vehicle is driven 500 miles
after delivery, whichever is earlier. In calculating time, a
day on which the implied warranty of merchantability is
breached is excluded and all subsequent days in which the used
motor vehicle fails to conform with the warranty are also
excluded. In calculating distance, the miles driven to or by
the seller to obtain or in connection with the repair,
servicing, or testing of a used motor vehicle that fails to
conform with the implied warranty of merchantability are

HB4708 - 4 - LRB100 16738 JLS 31878 b
excluded. An implied warranty of merchantability does not
extend to damage that occurs after the sale of the used motor
vehicle that results from:
(1) off-road use;
(2) racing;
(3) towing;
(4) abuse;
(5) misuse;
(6) neglect;
(7) failure to perform regular maintenance; and
(8) failure to maintain adequate oil, coolant, and
other required fluids or lubricants.
(f) If the implied warranty of merchantability described in
this Section is breached, the consumer shall give reasonable
notice to the seller no later than 2 business days after the
end of the statutory warranty period. Before the consumer
exercises another remedy pursuant to Article 2 of the Uniform
Commercial Code, the seller shall have a reasonable opportunity
to repair the used motor vehicle. The consumer shall pay
one-half of the cost of the first 2 repairs necessary to bring
the used motor vehicle into compliance with the warranty. The
payments by the consumer are limited to a maximum payment of
$100 for each repair; however, the consumer shall only be
responsible for a maximum payment of $100 if the consumer
brings in the vehicle for a second repair for the same defect.
Reasonable notice as defined in this Section shall include, but

HB4708 - 5 - LRB100 16738 JLS 31878 b
not be limited to:
(1) text, provided the seller has provided the consumer
with a cell phone number;
(2) phone call or message to the seller's business
phone number provided on the seller's bill of sale for the
purchase of the motor vehicle;
(3) in writing to the seller's address provided on the
seller's bill of sale for the purchase of the motor
vehicle;
(4) in person at the seller's address provided on the
seller's bill of sale for the purchase of the motor
vehicle.
(g) The maximum liability of a seller for repairs pursuant
to this Section is limited to the purchase price paid for the
used motor vehicle, to be refunded to the consumer or lender,
as applicable, in exchange for return of the vehicle.
(h) An agreement for the sale of a used motor vehicle
subject to this Section is voidable at the option of the
consumer, unless it contains on its face or in a separate
document the following conspicuous statement printed in
boldface 10-point or larger type set off from the body of the
agreement:
"Illinois law requires that this vehicle will be free of a
defect in a power train component for 15 days or 500 miles
after delivery, whichever is earlier, except with regard to
particular defects disclosed on the first page of this

HB4708 - 6 - LRB100 16738 JLS 31878 b
agreement. "Power train component" means the engine block,
head, all internal engine parts, oil pan and gaskets, water
pump, intake manifold, transmission, and all internal
transmission parts, torque converter, drive shaft, universal
joints, rear axle and all rear axle internal parts, and rear
wheel bearings. You (the consumer) will have to pay up to $100
for each of the first 2 repairs if the warranty is violated.".
(i) The inclusion in the agreement of the statement
prescribed in subsection (h) of this Section does not create an
express warranty.
(j) A consumer of a used motor vehicle may waive the
implied warranty of merchantability only for a particular
defect in the vehicle, including, but not limited to, a rebuilt
or flood-branded title and only if all of the following
conditions are satisfied:
(1) the seller subject to this Section fully and
accurately discloses to the consumer that because of
circumstances unusual to the business, the used motor
vehicle has a particular defect;
(2) the consumer agrees to buy the used motor vehicle
after disclosure of the defect; and
(3) before the sale, the consumer indicates agreement
to the waiver by signing and dating the following
conspicuous statement that is printed on the first page of
the sales agreement or on a separate document in boldface
10-point or larger type and that is written in the language

HB4708 - 7 - LRB100 16738 JLS 31878 b
in which the presentation was made:
"Attention consumer: sign here only if the seller has
told you that this vehicle has the following problem or
problems and you agree to buy the vehicle on those terms:
1. ......................................................
2. ..................................................
3. ...................................................".
(k) It shall be an affirmative defense to any claim under
this Section that:
(1) an alleged nonconformity does not substantially
impair the use and market value of the motor vehicle;
(2) a nonconformity is the result of abuse, neglect, or
unauthorized modifications or alterations of the motor
vehicle;
(3) a claim by a consumer was not filed in good faith;
or
(4) any other affirmative defense allowed by law.
(l) Other than the 15-day, 500-mile implied warranty of
merchantability identified herein, a seller subject to this
Section is not required to provide any further express or
implied warranties to a purchasing consumer unless:
(1) the seller is required by federal or State law to
provide a further express or implied warranty; or
(2) the seller fails to fully inform and disclose to
the consumer that the vehicle is being sold without any
further express or implied warranties, other than the 15

HB4708 - 8 - LRB100 16738 JLS 31878 b
day, 500 mile implied warranty of merchantability
identified in this Section.
(m) Any person who violates this Section commits an
unlawful practice within the meaning of this Act.
(Source: P.A. 99-768, eff. 7-1-17; 100-4, eff. 7-1-17; revised
10-12-17.)
(Text of Section after amendment by P.A. 100-512)
Sec. 2L. Used motor vehicles; modification or disclaimer of
implied warranty of merchantability limited.
(a) Any retail sale of a used motor vehicle made after July
1, 2017 (the effective date of Public Act 99-768) this
amendatory Act of the 99th General Assembly to a consumer by a
licensed vehicle dealer within the meaning of Chapter 5 of the
Illinois Vehicle Code or by an auction company at an auction
that is open to the general public is made subject to this
Section.
(b) This Section does not apply to any of the following:
(1) a vehicle with more than 150,000 miles at the time
of sale;
(2) a vehicle with a title that has been branded
"rebuilt" or "flood";
(3) a vehicle with a gross vehicle weight rating of
8,000 pounds or more; or
(4) a vehicle that is an antique vehicle, as defined in
the Illinois Vehicle Code, or that is a collector motor

HB4708 - 9 - LRB100 16738 JLS 31878 b
vehicle; or .
(5) a vehicle sold at an auction that is open to the
general public, provided that the auction company has
conducted a mechanical inspection of the vehicle and
provided notice of any defects to the vehicle to
prospective purchasers.
(b-5) This Section does not apply to the sale of any
vehicle for which the dealer offers an express warranty that
provides coverage that is equal to or greater than the limited
implied warranty of merchantability required under this
Section 2L.
(b-6) (b-5) This Section does not apply to forfeited
vehicles sold at auction by or on behalf of the Department of
State Police.
(c) Except as otherwise provided in this Section 2L, any
sale of a used motor vehicle as described in subsection (a) may
not exclude, modify, or disclaim the implied warranty of
merchantability created under this Section 2L or limit the
remedies for a breach of the warranty hereunder before midnight
of the 15th calendar day after delivery of a used motor vehicle
or until a used motor vehicle is driven 500 miles after
delivery, whichever is earlier. In calculating time under this
Section, a day on which the warranty is breached and all
subsequent days in which the used motor vehicle fails to
conform with the implied warranty of merchantability are
excluded. In calculating distance under this Section, the miles

HB4708 - 10 - LRB100 16738 JLS 31878 b
driven to obtain or in connection with the repair, servicing,
or testing of a used motor vehicle that fails to conform with
the implied warranty of merchantability are excluded. An
attempt to exclude, modify, or disclaim the implied warranty of
merchantability or to limit the remedies for a breach of the
warranty in violation of this Section renders a purchase
agreement voidable at the option of the purchaser.
(d) An implied warranty of merchantability is met if a used
motor vehicle functions for the purpose of ordinary
transportation on the public highway and substantially free of
a defect in a power train component. As used in this Section,
"power train component" means the engine block, head, all
internal engine parts, oil pan and gaskets, water pump, intake
manifold, transmission, and all internal transmission parts,
torque converter, drive shaft, universal joints, rear axle and
all rear axle internal parts, and rear wheel bearings.
(e) The implied warranty of merchantability expires at
midnight of the 15th calendar day after delivery of a used
motor vehicle or when a used motor vehicle is driven 500 miles
after delivery, whichever is earlier. In calculating time, a
day on which the implied warranty of merchantability is
breached is excluded and all subsequent days in which the used
motor vehicle fails to conform with the warranty are also
excluded. In calculating distance, the miles driven to or by
the seller to obtain or in connection with the repair,
servicing, or testing of a used motor vehicle that fails to

HB4708 - 11 - LRB100 16738 JLS 31878 b
conform with the implied warranty of merchantability are
excluded. An implied warranty of merchantability does not
extend to damage that occurs after the sale of the used motor
vehicle that results from:
(1) off-road use;
(2) racing;
(3) towing;
(4) abuse;
(5) misuse;
(6) neglect;
(7) failure to perform regular maintenance; and
(8) failure to maintain adequate oil, coolant, and
other required fluids or lubricants.
(f) If the implied warranty of merchantability described in
this Section is breached, the consumer shall give reasonable
notice to the seller no later than 2 business days after the
end of the statutory warranty period. Before the consumer
exercises another remedy pursuant to Article 2 of the Uniform
Commercial Code, the seller shall have a reasonable opportunity
to repair the used motor vehicle. The consumer shall pay
one-half of the cost of the first 2 repairs necessary to bring
the used motor vehicle into compliance with the warranty. The
payments by the consumer are limited to a maximum payment of
$100 for each repair; however, the consumer shall only be
responsible for a maximum payment of $100 if the consumer
brings in the vehicle for a second repair for the same defect.

HB4708 - 12 - LRB100 16738 JLS 31878 b
Reasonable notice as defined in this Section shall include, but
not be limited to:
(1) text, provided the seller has provided the consumer
with a cell phone number;
(2) phone call or message to the seller's business
phone number provided on the seller's bill of sale for the
purchase of the motor vehicle;
(3) in writing to the seller's address provided on the
seller's bill of sale for the purchase of the motor
vehicle;
(4) in person at the seller's address provided on the
seller's bill of sale for the purchase of the motor
vehicle.
(g) The maximum liability of a seller for repairs pursuant
to this Section is limited to the purchase price paid for the
used motor vehicle, to be refunded to the consumer or lender,
as applicable, in exchange for return of the vehicle.
(h) An agreement for the sale of a used motor vehicle
subject to this Section is voidable at the option of the
consumer, unless it contains on its face or in a separate
document the following conspicuous statement printed in
boldface 10-point or larger type set off from the body of the
agreement:
"Illinois law requires that this vehicle will be free of a
defect in a power train component for 15 days or 500 miles
after delivery, whichever is earlier, except with regard to

HB4708 - 13 - LRB100 16738 JLS 31878 b
particular defects disclosed on the first page of this
agreement. "Power train component" means the engine block,
head, all internal engine parts, oil pan and gaskets, water
pump, intake manifold, transmission, and all internal
transmission parts, torque converter, drive shaft, universal
joints, rear axle and all rear axle internal parts, and rear
wheel bearings. You (the consumer) will have to pay up to $100
for each of the first 2 repairs if the warranty is violated.".
(i) The inclusion in the agreement of the statement
prescribed in subsection (h) of this Section does not create an
express warranty.
(j) A consumer of a used motor vehicle may waive the
implied warranty of merchantability only for a particular
defect in the vehicle, including, but not limited to, a rebuilt
or flood-branded title and only if all of the following
conditions are satisfied:
(1) the seller subject to this Section fully and
accurately discloses to the consumer that because of
circumstances unusual to the business, the used motor
vehicle has a particular defect;
(2) the consumer agrees to buy the used motor vehicle
after disclosure of the defect; and
(3) before the sale, the consumer indicates agreement
to the waiver by signing and dating the following
conspicuous statement that is printed on the first page of
the sales agreement or on a separate document in boldface

HB4708 - 14 - LRB100 16738 JLS 31878 b
10-point or larger type and that is written in the language
in which the presentation was made:
"Attention consumer: sign here only if the seller has
told you that this vehicle has the following problem or
problems and you agree to buy the vehicle on those terms:
1. ......................................................
2. ..................................................
3. ...................................................".
(k) It shall be an affirmative defense to any claim under
this Section that:
(1) an alleged nonconformity does not substantially
impair the use and market value of the motor vehicle;
(2) a nonconformity is the result of abuse, neglect, or
unauthorized modifications or alterations of the motor
vehicle;
(3) a claim by a consumer was not filed in good faith;
or
(4) any other affirmative defense allowed by law.
(l) Other than the 15-day, 500-mile implied warranty of
merchantability identified herein, a seller subject to this
Section is not required to provide any further express or
implied warranties to a purchasing consumer unless:
(1) the seller is required by federal or State law to
provide a further express or implied warranty; or
(2) the seller fails to fully inform and disclose to
the consumer that the vehicle is being sold without any

HB4708 - 15 - LRB100 16738 JLS 31878 b
further express or implied warranties, other than the 15
day, 500 mile implied warranty of merchantability
identified in this Section.
(m) Any person who violates this Section commits an
unlawful practice within the meaning of this Act.
(Source: P.A. 99-768, eff. 7-1-17; 100-4, eff. 7-1-17; 100-512,
eff. 7-1-18; revised 10-12-17.)
Section 95. No acceleration or delay. Where this Act makes
changes in a statute that is represented in this Act by text
that is not yet or no longer in effect (for example, a Section
represented by multiple versions), the use of that text does
not accelerate or delay the taking effect of (i) the changes
made by this Act or (ii) provisions derived from any other
Public Act.
Section 99. Effective date. This Act takes effect upon
becoming law.