New Jersey-2016-S2959-Introduced

An Act concerning motor vehicle warranties and amending and supplementing P.L.1988, c.123.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 6 of P.L.1988, c.123 (C.56:12-34) is amended to read as follows:

6. a. At the time of purchase in the State of New Jersey, the manufacturer, or, in the case of an authorized emergency vehicle, the manufacturer, co-manufacturer, or post-manufacturing modifier, through its dealer or distributor, or at the time of lease in the State of New Jersey, the lessor, shall provide directly to the consumer a written statement prescribed by the director, presented in a conspicuous and understandable manner on a separate piece of paper and printed in both the English and Spanish languages, which provides information concerning a consumer's rights and remedies under P.L.1988, c.123 (C.56:12-29 et seq.), and shall include, but not be limited to, a summary of the provisions of:

(1) section 3 of P.L.1988, c.123 (C.56:12-31), concerning the miles of operation of a motor vehicle and time period within which the consumer may report a nonconformity and seek remedies;

(2) sections 4 and 5 of P.L.1988, c.123 (C.56:12-32 and 56:12-33), concerning a manufacturer's, co-manufacturer's, or post-manufacturing modifier's obligations to a consumer based upon the manufacturer's, co-manufacturer's, or post-manufacturing modifier's, or its dealer's or distributor's, inability to repair or correct a nonconformity; [and]

(3) any other provisions of P.L.1988, c.123 (C.56:12-29 et seq.) the director deems appropriate; and

(4) if appropriate, the federal "Magnuson-Moss Warranty Act," 15 U.S.C. 2301 et seq., as it relates to aftermarket and recycled parts, pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).

b. Each time a consumer's motor vehicle is returned from being examined or repaired during the period specified in section 3 of P.L.1988, c.123 (C.56:12-31), the manufacturer, or, in the case of an authorized emergency vehicle, the manufacturer, co-manufacturer, or post-manufacturing modifier, through its dealer or distributor, shall provide to the consumer an itemized, legible statement of repair which indicates any diagnosis made and all work performed on the vehicle and provides information including, but not limited to, the following: a general description of the problem reported by the consumer or an identification of the problem reported by the consumer or an identification of the defect or condition and the source of the defect; the amount charged for parts and the amount charged for labor, if paid for by the consumer; the date and the odometer reading when the vehicle was submitted for repair; and the date and odometer reading when the vehicle was made available to the consumer.

c. Failure to comply with the provisions of this section or section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) constitutes an unlawful practice pursuant to section 2 of P.L.1960, c.39 (C.56:8-2).

(cf: P.L.2009, c.324, s.6)

2. (New section) a. At the time of purchase of a new motor vehicle in the State of New Jersey, a dealer shall provide directly to the buyer a written statement, presented in a conspicuous and understandable manner on a separate piece of paper and printed in both the English and Spanish languages in not less than 10-point boldface type, the following:

"The Magnuson-Moss Warranty Act, 15 U.S.C. 2301 et seq., makes it illegal for motor vehicle manufacturers or dealers to void a motor vehicle warranty or deny coverage under the motor vehicle warranty simply because an aftermarket or recycled part was installed or used on the vehicle or simply because someone other than the dealer performed service on the vehicle. It is illegal for a manufacturer or dealer to void your warranty or deny coverage under the warranty simply because you used an aftermarket or recycled part. If it turns out that an aftermarket or recycled part was itself defective or wasn't installed correctly and it causes damage to another part that is covered under the warranty, the manufacturer or dealer has the right to deny coverage for that part and charge you for any repairs. The Federal Trade Commission requires the manufacturer or dealer to show that the aftermarket or recycled part caused the need for repairs before denying warranty coverage."

b. As used in this section:

"Aftermarket part" means a part that was made by a company other than the motor vehicle manufacturer or the original equipment manufacturer.

"Recycled part" means a part that was made for and installed in a new motor vehicle by the manufacturer or the original equipment manufacturer and later removed from the motor vehicle and made available for resale or reuse.

3. This act shall take effect immediately.

STATEMENT

This bill requires a new motor vehicle dealer to provide a purchaser with a written statement summarizing vehicle warranty coverage for aftermarket and recycled parts.

Specifically, the bill requires a dealer to provide a new vehicle buyer with a written statement, on a separate piece of paper and printed in both the English and Spanish languages in not less than 10-point boldface type, with the following notice:

The notification requirements are substantively identical to those in the recently enacted Connecticut law, Public Act No. 15-230.

Failure to comply with the notification provisions in this bill would be an unlawful practice under the consumer fraud act, P.L.1960, c.39 (C.56:8-1 et seq.). An unlawful practice is punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. Additionally, a violation can result in cease and desist orders issued by the Attorney General, the assessment of punitive damages, and the awarding of treble damages and costs to the injured.