State of Illinois
90th General Assembly
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90_SB1297

      815 ILCS 505/2L           from Ch. 121 1/2, par. 262L
          Amends  the  Consumer  Fraud   and   Deceptive   Business
      Practices  Act.   In provisions setting out the percentage of
      the cost of repair of power train components to be covered by
      a new or used vehicle dealer for a period of 30 days from the
      date of delivery of the vehicle to  the  purchasing  consumer
      depending  on  the  age of the vehicle, adds a provision that
      the dealer must cover 100% of the cost  of  repair  of  power
      train components for a period of 3 days after delivery of the
      vehicle  to  the purchasing consumer regardless of the age of
      the  vehicle,  excluding  repairs  necessitated   by   abuse,
      negligence  or  collision.  Provides that the provision which
      exempts dealers from  any  warranty  upon  agreement  with  a
      purchasing  consumer  does  not  exempt dealers from the 100%
      coverage of power train components for 3 days after delivery.
      Provides  that  a  motor  vehicle   dealer   or   motor   car
      manufacturer  may issue a warranty or guarantee that meets or
      exceeds these protections.  Effective January 1, 1999.
                                                    LRB9007365SMdvB
                                              LRB9007365SMdvB
 1        AN ACT to amend the Consumer Fraud and Deceptive Business
 2    Practices Act by changing Section 2L.
 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:
 5        Section  5.   The  Consumer  Fraud and Deceptive Business
 6    Practices Act is amended by changing Section 2L as follows:
 7        (815 ILCS 505/2L) (from Ch. 121 1/2, par. 262L)
 8        Sec. 2L. Any retail sale of a motor  vehicle  made  after
 9    January  1,  1968 to a consumer by a new motor vehicle dealer
10    or used motor vehicle dealer within the meaning of Chapter  5
11    of the Illinois Vehicle Code is made subject to this Section.
12        (a)  The  dealer is liable to the purchasing consumer for
13    the following share of the cost of the repair of Power  Train
14    components  for  a  period  of 30 days from date of delivery,
15    unless  the  repairs  have   become   necessary   by   abuse,
16    negligence,  or  collision. The burden of establishing that a
17    claim for repairs is not within this Section shall be on  the
18    selling dealer. The dealer's share of such repair costs is:
19        (1)  in  the  case  of  a motor vehicle which is not more
20    than 2 years old, 50%;
21        (2)  in the case of a motor vehicle which is 2  or  more,
22    but less than 3 years old, 25%;
23        (3)  in  the  case of a motor vehicle which is 3 or more,
24    but less than 4 years old, 10%; and
25        (4)  in the case of a motor vehicle which is  4  or  more
26    years old, none.
27        (b)  Notwithstanding  the  foregoing, such a dealer and a
28    purchasing consumer may negotiate a sale and purchase that is
29    not subject to this  Section  if  there  is  stamped  on  any
30    purchase  order,  contract, agreement, or other instrument to
31    be signed by the consumer as a part of that  transaction,  in
                            -2-               LRB9007365SMdvB
 1    at  least  10-point bold type immediately above the signature
 2    line, the following:
 3            "THIS VEHICLE IS SOLD AS IS WITH NO WARRANTY
 4                     AS TO MECHANICAL CONDITION"
 5        The  exemption  from  a  warranty  as  provided  in  this
 6    subsection (b) shall not apply to  the  dealer  liability  in
 7    subsection (b-5).
 8        (b-5)  In addition to the requirements of subsection (a),
 9    the  dealer  is liable to the purchasing consumer for 100% of
10    the cost of repair of power train components for a period  of
11    3  days  after  delivery  regardless  of the age of the motor
12    vehicle, unless the repairs have become necessary  by  abuse,
13    negligence, or collision.
14        (c)  As  used  in  this Section, "Power Train components"
15    means the engine block, head, all internal engine parts,  oil
16    pan  and  gaskets, water pump, intake manifold, transmission,
17    and all internal transmission parts, torque converter,  drive
18    shaft, universal joints, rear axle and all rear axle internal
19    parts, and rear wheel bearings.
20        (d)  The repair liability means that the dealer will make
21    necessary  Power  Train  component repairs in his shop, or in
22    the shop of his  service  affiliate,  on  the  basis  of  his
23    regular list price charge for parts and labor, where the flat
24    rate  list  price does not exceed 50% of the selling price of
25    the vehicle at the time repairs are requested.
26        (e)  The age of the vehicle shall be  measured  according
27    to  the manufacturer's model year designation as shown on the
28    Certificate of Title or  Registration  Certificate.  Vehicles
29    shall  be  designated as current year models, one year old, 2
30    year old, and so forth according to the time that has elapsed
31    since January 1 of the appropriate model year so designated.
32        (f)  This Section does not preclude  the  issuance  of  a
33    warranty  or guarantee by a motor vehicle dealer or motor car
34    manufacturer that meets or exceeds the  basic  provisions  of
                            -3-               LRB9007365SMdvB
 1    paragraphs paragraph (a) and (b-5).
 2        (g)  After  the  effective date of this amendatory Act of
 3    1989, executives' and  officials'  cars  when  so  advertised
 4    shall  have been used exclusively by executives of the parent
 5    motor car manufacturer's personnel or by an executive  of  an
 6    authorized  dealer  in  the same make of car.  These cars, so
 7    advertised, shall not have been  sold  to  a  member  of  the
 8    public prior to the appearance of the advertisement.
 9        Any  person who violates this Section commits an unlawful
10    practice within the meaning of this Act.
11    (Source: P.A. 86-351; 87-1140.)
12        Section 99.   Effective  date.   This  Act  takes  effect
13    January 1, 1999.

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