SB 600 - Used Car Buyer's Protection Act - create
Georgia Senate - 1995/1996 Sessions
SB 600 - Used Car Buyer's Protection Act - create
Page Numbers - 1/ 2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ 10
1. James 35th
Senate Comm: C Aff / House Comm: /
Senate Vote: Yeas Nays
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Senate Action House
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1/23/96 Read 1st time
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Code Sections amended:
SB 600 96 LC 19 2889
SENATE BILL 600
By: Senator James of the 35th
A BILL TO BE ENTITLED
AN ACT
1- 1 To amend Chapter 1 of Title 10 of the Official Code of
1- 2 Georgia Annotated, relating to selling and other trade
1- 3 practices, so as to create the "Used Car Buyer's Protection
1- 4 Act"; to provide for legislative findings; to provide for
1- 5 definitions; to require dealers to offer a written warranty
1- 6 on all used motor vehicles sold to consumers; to provide for
1- 7 the terms of such warranty; to provide for returns and
1- 8 refunds under certain conditions; to provide for affirmative
1- 9 defenses against claims; to provide for opportunity to make
1-10 repairs in order to conform to written warranties; to
1-11 provide for the extension of warranty or service contract
1-12 terms under certain conditions; to provide for exceptions;
1-13 to provide for consumer notice; to provide for informal
1-14 dispute settlement procedures; to provide for remedies for
1-15 violations; to provide for limitation of actions; to provide
1-16 for applicability; to provide for related matters; to
1-17 provide an effective date; to repeal conflicting laws; and
1-18 for other purposes.
1-19 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
1-20 Chapter 1 of Title 10 of the Official Code of Georgia
1-21 Annotated, relating to selling and other trade practices, is
1-22 amended by adding at the end thereof a new Article 34 to
1-23 read as follows:
"ARTICLE 34
1-24 10-1-900. (Index)
1-25 This article shall be known and may be cited as the 'Used
1-26 Car Buyer's Protection Act.'
1-27 10-1-901. (Index)
1-28 The General Assembly recognizes that the procurement of a
1-29 used motor vehicle is a major consumer purchase. It is
1-30 the intent of the General Assembly to provide certain
1-31 disclosure rights to consumers who purchase used motor
S. B. 600
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LC 19 2889
2- 1 vehicles from dealers in this state. It is the intent of
2- 2 the General Assembly that consumers be made aware of their
2- 3 rights prior to the sale of a used motor vehicle so as to
2- 4 receive the basis of their bargain.
2- 5 10-1-902. (Index)
2- 6 As used in this article, the term:
2- 7 (1) 'Consumer' means the purchaser, other than for
2- 8 purposes of resale, of a used motor vehicle normally
2- 9 used for personal, family, or household purposes and
2-10 subject to a warranty, and the spouse or child of the
10-1-903 10-1-904 10-1-905 10-1-906 10-1-907 10-1-908 10-1-909 10-1-910 10-1-911 10-1-912
2-12 spouse or child during the duration of any warranty
2-13 applicable to such motor vehicle, and any other person
2-14 entitled by the terms of such warranty to enforce the
2-15 obligations of the warranty.
2-16 (2) 'Dealer' means any person or business which sells or
2-17 offers for sale a used motor vehicle after selling or
2-18 offering for sale three or more used vehicles in the
2-19 previous 12 month period but does not include a bank or
2-20 financial institution, a business selling a used vehicle
2-21 to an employee of that business, a regulated public
2-22 utility which sells at public auction vehicles used in
2-23 the ordinary course of its operations, provided that any
2-24 advertisements of such sales conspicuously disclose the
2-25 'as is' nature of the sale, a lessor selling a leased
2-26 vehicle to that vehicle's lessee, a family member of the
2-27 lessee, or an employee of the lessee, or the state, its
2-28 agencies, bureaus, boards, commissions, and authorities,
2-29 and any political subdivision of the state, including
2-30 the agencies and authorities of such subdivision.
2-31 (3) 'Manufacturer' means any person engaged in the
2-32 business of constructing or assembling new motor
2-33 vehicles or engaged in the business of importing new
2-34 motor vehicles into the United States for the purpose of
2-35 selling or distributing new motor vehicles to new motor
2-36 vehicle dealers.
2-37 (4) 'Service contract' means a contract in writing for
2-38 any period of time or any specific mileage to refund,
2-39 repair, replace, maintain, or take other action with
2-40 respect to a used motor vehicle and provided at an extra
2-41 charge beyond the price of the used motor vehicle.
S. B. 600
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LC 19 2889
3- 1 (5) 'Used motor vehicle' means a motor vehicle,
3- 2 excluding motorcycles, motor homes, and off-road
3- 3 vehicles, which has been driven more than the limited
3- 4 use necessary in moving or road testing a new vehicle
3- 5 prior to delivery.
3- 6 (6) 'Warranty' means any undertaking in writing,
3- 7 excluding a service contract, in connection with the
3- 8 sale by a dealer of a used motor vehicle to refund,
3- 9 repair, replace, maintain, or take other action with
3-10 respect to a used motor vehicle and provided at no extra
3-11 charge beyond the purchase price.
3-12 10-1-903. (Index)
3-13 (a) No dealer shall sell a used motor vehicle to a
3-14 consumer without giving the consumer a written warranty
3-15 which shall at a minimum apply for the following terms:
3-16 (1) If the used motor vehicle has 36,000 miles or less,
3-17 the warranty shall be at minimum 60 days or 3,000 miles,
3-18 whichever comes first; or
3-19 (2) If the used motor vehicle has more than 36,000
3-20 miles, the warranty shall be at minimum 30 days or 1,000
3-21 miles, whichever comes first.
3-22 (b) The written warranty shall require the dealer or the
3-23 dealer's agent to repair or, at the election of the
3-24 dealer, reimburse the consumer for the reasonable cost of
3-25 repairing the failure of a covered part. Covered parts
3-26 shall at least include the following items:
3-27 (1) Engine, including all lubricated parts, water pump,
3-28 fuel pump, manifolds, engine block, cylinder head,
3-29 rotary engine housings, and flywheel;
3-30 (2) Transmission, including the transmission case,
3-31 internal parts, and the torque converter;
3-32 (3) Drive axle, including front and rear drive axle
3-33 housings and internal parts, axle shafts, propeller
3-34 shafts, and universal joints;
3-35 (4) Brakes, including master cylinder, vacuum assist
3-36 booster, wheel cylinders, hydraulic lines and fittings,
3-37 and disc brake calipers;
3-38 (5) Radiator;
S. B. 600
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LC 19 2889
4- 1 (6) Steering, including the steering gear housing and
4- 2 all internal parts, power steering pump, valve body,
4- 3 piston, and rack; and
4- 4 (7) Alternator, generator, starter, and ignition system,
4- 5 excluding the battery.
4- 6 (c) Such repair or reimbursement shall be made by the
4- 7 dealer notwithstanding the fact that the warranty period
4- 8 has expired, provided that the consumer notifies the
4- 9 dealer of the failure of a covered part within the
4-10 specified warranty period.
4-11 (d) The written warranty may contain additional language
4-12 excluding coverage:
4-13 (1) For a failure of a covered part caused by a lack of
4-14 customer maintenance;
4-15 (2) For a failure of a covered part caused by collision,
4-16 abuse, negligence, theft, vandalism, fire or other
4-17 casualty, and damage from the environment, including
4-18 windstorm, lightning, and road hazards;
4-19 (3) If the odometer has been stopped or altered such
4-20 that the vehicle's actual mileage cannot be readily
4-21 determined or if any covered part has been altered such
4-22 that a covered part was thereby caused to fail;
4-23 (4) For maintenance services and the parts used in
4-24 connection with such services such as seals, gaskets,
4-25 oil, or grease unless required in connection with the
4-26 repair of a covered part;
4-27 (5) For a motor tune-up;
4-28 (6) For a failure resulting from racing or other
4-29 competition;
4-30 (7) For a failure caused by towing a trailer or another
4-31 vehicle unless the used motor vehicle is equipped for
4-32 this as recommended by the manufacturer;
4-33 (8) If the used motor vehicle is used to carry
4-34 passengers for hire;
4-35 (9) If the used motor vehicle is rented to someone else;
4-36 (10) For repair of valves or rings, or both, to correct
4-37 low compression or oil consumption, or both, which are
4-38 considered normal wear;
S. B. 600
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LC 19 2889
5- 1 (11) To the extent otherwise permitted by law, for
5- 2 property damage arising or allegedly arising out of the
5- 3 failure of a covered part; and
5- 4 (12) To the extent otherwise permitted by law, for loss
5- 5 of the use of the used motor vehicle, loss of time,
5- 6 inconvenience, commercial loss, or consequential
5- 7 damages.
5- 8 10-1-904. (Index)
5- 9 (a) If the dealer or the dealer's agent fails to correct a
5-10 malfunction or defect as required by the warranty
5-11 specified in Code Section 10-1-903 which substantially
5-12 impairs the value of the used motor vehicle to the
5-13 consumer after a reasonable period of time, the dealer
5-14 shall accept return of the used motor vehicle from the
5-15 consumer and refund to the consumer the full purchase
5-16 price including sales tax, less a reasonable allowance for
5-17 any damage not attributable to normal wear or usage, and
5-18 adjustment for any modifications which either increase or
5-19 decrease the market value of the vehicle. In determining
5-20 the purchase price to be refunded, the purchase price
5-21 shall be deemed equal to the sum of the actual cash
5-22 difference paid for the used motor vehicle plus, if the
5-23 dealer elects not to return any vehicle traded in by the
5-24 consumer, the wholesale value of any such traded-in
5-25 vehicles as listed in the National Auto Dealers
5-26 Association Used Car Guide, or such other guide as may be
5-27 specified in regulations promulgated by the state revenue
5-28 commissioner, as adjusted for mileage, improvements, and
5-29 any major physical or mechanical defects in the traded-in
5-30 vehicle at the time of trade-in. The dealer selling the
5-31 used motor vehicle shall deliver to the consumer a written
5-32 notice including conspicuous language indicating that if
5-33 the consumer should be entitled to a refund pursuant to
5-34 this Code section, the value of any vehicle traded in by
5-35 the consumer, if the dealer elects not to return it to the
5-36 consumer, for purposes of determining the amount of such
5-37 refund will be determined by reference to the National
5-38 Auto Dealers Association Used Car Guide wholesale value,
5-39 or such other guide as may be approved by the state
5-40 revenue commissioner, as adjusted for mileage,
5-41 improvements, and any major physical or mechanical
5-42 defects, rather than the value listed in the sales
5-43 contract. Refunds shall be made to the consumer and
5-44 lienholder, if any, as their interests may appear on the
S. B. 600
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LC 19 2889
6- 1 records of ownership kept by the department of motor
6- 2 vehicles. If the amount to be refunded to the lienholder
6- 3 will be insufficient to discharge the lien, the dealer
6- 4 shall notify the consumer in writing by registered or
6- 5 certified mail that the consumer has 30 days to pay the
6- 6 lienholder the amount which, together with the amount to
6- 7 be refunded by the dealer, will be sufficient to discharge
6- 8 the lien. The notice to the consumer shall contain
6- 9 conspicuous language warning the consumer that failure to
6-10 pay such funds to the lienholder within 30 days will
6-11 terminate the dealer's obligation to provide a refund. If
6-12 the consumer fails to make such payment within 30 days,
6-13 the dealer shall have no further responsibility to provide
6-14 a refund under this Code section. Alternatively, the
6-15 dealer may elect to offer to replace the used motor
6-16 vehicle with a comparably priced vehicle, with such
6-17 adjustment in price as the parties may agree to. The
6-18 consumer shall not be obligated to accept a replacement
6-19 vehicle but may instead elect to receive the refund
6-20 provided under this Code section. It shall be an
6-21 affirmative defense to any claim under this subsection
6-22 that:
6-23 (1) The malfunction or defect does not substantially
6-24 impair such value; or
6-25 (2) The malfunction or defect is the result of abuse,
6-26 neglect, or unreasonable modifications or alterations of
6-27 the used motor vehicle.
6-28 (b) It shall be presumed that a dealer has had a
6-29 reasonable opportunity to correct a malfunction or defect
6-30 in a used motor vehicle if:
6-31 (1) The same malfunction or defect has been subject to
6-32 repair three or more times by the selling dealer or the
6-33 dealer's agent within the warranty period, but such
6-34 malfunction or defect continues to exist; or
6-35 (2) The vehicle is out of service by reason of repair or
6-36 malfunction or defect for a cumulative total of 15 or
6-37 more days during the warranty period. Said period shall
6-38 not include days when the dealer is unable to complete
6-39 the repair because of the unavailability of necessary
6-40 repair parts. The dealer shall be required to exercise
6-41 due diligence in attempting to obtain necessary repair
6-42 parts; provided, however, that if a vehicle has been out
6-43 of service for a cumulative total of 45 days, even if a
S. B. 600
-6- (Index)
LC 19 2889
7- 1 portion of that time is attributable to the
7- 2 unavailability of replacement parts, the consumer shall
7- 3 be entitled to the replacement or refund remedies
7- 4 provided in this Code section.
7- 5 10-1-905. (Index)
7- 6 (a) The term of any warranty or service contract shall be
7- 7 extended by any time period during which the used motor
7- 8 vehicle is in the possession of the dealer or the dealer's
7- 9 duly authorized agent for the purpose of repairing the
7-10 used motor vehicle under the terms and obligations of said
7-11 warranty or service contract.
7-12 (b) The term of any warranty or service contract and the
7-13 15 day out-of-service period shall be extended by any time
7-14 during which repair services are not available to the
7-15 consumer because of a war, invasion, strike, fire, flood,
7-16 or other natural disaster.
7-17 10-1-906. (Index)
7-18 Any agreement entered into by a consumer for the purchase
7-19 of a used motor vehicle which waives, limits, or disclaims
7-20 the rights set forth in this article shall be void as
7-21 contrary to public policy. Further, if a dealer fails to
7-22 give the written warranty required by this article, the
7-23 dealer nevertheless shall be deemed to have given said
7-24 warranty as a matter of law.
7-25 10-1-907. (Index)
7-26 This article shall not apply to used motor vehicles sold
7-27 for less than $1,500.00 or to used motor vehicles with
7-28 over 100,000 miles at the time of sale if said mileage is
7-29 indicated in writing at the time of sale. Further, this
7-30 article shall not apply to the sale of antique or hobby or
7-31 special interest vehicles as defined in Code Section
7-32 40-2-77.
7-33 10-1-908. (Index)
7-34 (a) The written warranty provided for in Code Section
7-35 10-1-903 and the written notice provided for in subsection
7-36 (b) of this Code section shall be delivered to the
7-37 consumer at or before the time the consumer signs the
7-38 sales contract for the used motor vehicle. The warranty
7-39 and the notice may be set forth on one sheet or on
7-40 separate sheets. They may be separate from, attached to,
7-41 or a part of the sales contract. If they are part of the
S. B. 600
-7- (Index)
LC 19 2889
8- 1 sales contract, they shall be separated from the other
8- 2 contract provisions and each headed by a conspicuous
8- 3 title.
8- 4 (b) If a dealer has established or participates in an
8- 5 informal dispute settlement procedure which complies in
8- 6 all respects with the provisions of Part 703 Title 16 of
8- 7 the Code of Federal Regulations, the provisions of this
8- 8 article concerning refunds or replacement shall not apply
8- 9 to any consumer who has not first resorted to such
8-10 procedure. Dealers utilizing informal dispute settlement
8-11 procedures pursuant to this subsection shall ensure that
8-12 arbitrators participating in such informal dispute
8-13 settlement procedures are familiar with the provisions of
8-14 this article and shall provide to arbitrators and
8-15 consumers who seek arbitration a copy of the provisions of
8-16 this article together with the following notice in
8-17 conspicuous ten point boldface type:
8-18 'USED CAR LEMON LAW BILL OF RIGHTS
8-19 (1) If you purchase a used car for more than $1,500.00
8-20 from anyone selling three or more used cars a year, you
8-21 must be given a written warranty.
8-22 (2) If you used car has 36,000 miles or less, the
8-23 warranty must extend for at least 60 days or 3,000
8-24 miles, whichever comes first.
8-25 (3) If you used car has more than 36,000 miles, the
8-26 warranty must extend for at least 30 days or 1,000
8-27 miles, whichever comes first. Cars with over 100,000
8-28 miles are not covered.
8-29 (4) If your engine, transmission, drive axle, brakes,
8-30 radiator, steering, alternator, generator, starter, or
8-31 ignition system, excluding the battery, are defective,
8-32 the seller or the seller's agent must repair or, if he
8-33 or she so chooses, reimburse you for the reasonable cost
8-34 of repair.
8-35 (5) If the same problem cannot be repaired after three
8-36 or more attempts, you are entitled to return the car and
8-37 receive a refund of your purchase price, sales tax, and
8-38 fees, minus a reasonable allowance for any damage not
8-39 attributable to normal usage or wear.
8-40 (6) If your car is out of service to repair a problem
8-41 for a total of 15 days or more during the warranty
8-42 period, you are entitled to return the car and receive a
S. B. 600
-8- (Index)
LC 19 2889
9- 1 refund of your purchase price, sales tax, and fees,
9- 2 minus a reasonable allowance for any damage not
9- 3 attributable to normal usage or wear.
9- 4 (7) A seller may put into the written warranty certain
9- 5 provisions which will prohibit your recovery under
9- 6 certain conditions; however, the seller may not cause
9- 7 you to waive any rights under this law.
9- 8 (8) A seller may refuse to refund your purchase price if
9- 9 the problem does not substantially impair the value of
9-10 your car, or if the problem is caused by abuse, neglect,
9-11 or unreasonable modification.
9-12 (9) If a seller has established an arbitration
9-13 procedure, the seller may refuse to refund your purchase
9-14 price until you first resort to the procedure. If the
9-15 seller does not have an arbitration procedure, you may
9-16 resort to any remedy provided by law and may be entitled
9-17 to your attorney's fees if you prevail.'
9-18 10-1-909. (Index)
9-19 A dealer shall have up to 30 days from the date of notice
9-20 by the consumer that the arbitrator's decision has been
9-21 accepted to comply with the terms of such decision;
9-22 provided, however, that nothing contained in this Code
9-23 section shall impose any liability on a dealer where a
9-24 delay beyond the 30 day period is attributable to a
9-25 consumer who has requested a particular replacement
9-26 vehicle or otherwise made compliance impossible within
9-27 said period.
9-28 10-1-910. (Index)
9-29 In no event shall a consumer who has resorted to an
9-30 informal dispute settlement procedure be precluded from
9-31 seeking the rights or remedies available by law.
9-32 10-1-911. (Index)
9-33 Nothing in this article shall in any way limit the rights
9-34 or remedies which are otherwise available to a consumer
9-35 under any other law.
9-36 10-1-912. (Index)
9-37 (a) In an action brought to enforce the provisions of this
9-38 article, the court may award reasonable attorney's fees to
9-39 a prevailing plaintiff.
S. B. 600
-9- (Index)
LC 19 2889
10- 1 (b) Any action brought pursuant to this article shall be
10- 2 commenced within four years of the date of original
10- 3 delivery of the used motor vehicle to the consumer.
10- 4 10-1-913. (Index)
10- 5 A violation of this article shall constitute an unfair and
10- 6 deceptive act or practice and a consumer transaction under
10- 7 Part 2 of Article 15 of this chapter. All public and
10- 8 private remedies provided under Part 2 of Article 15 of
10- 9 this chapter shall be available to enforce this article,
10-10 subject to the affirmative defenses provided in subsection
10-11 (a) of Code Section 10-1-904."
SECTION 2.
10-12 This Act shall become effective October 1, 1996, and shall
10-13 apply to all used motor vehicles sold on or after such date.
SECTION 3.
10-14 All laws and parts of laws in conflict with this Act are
10-15 repealed.
S. B. 600
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Office of the Secretary of the Senate
Frank Eldridge, Jr., Secretary of the Senate
Last Updated on 01/02/97