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

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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: (Passed) 2017-06-30 - Public Act . . . . . . . . . 100-0004 [HB1560 Detail]

Download: Illinois-2017-HB1560-Engrossed.html

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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) (from Ch. 121 1/2, par. 262L)
(Text of Section before amendment by P.A. 99-768)
Sec. 2L. Any retail sale of a motor vehicle made after
January 1, 1968 to a consumer by a new motor vehicle dealer or
used motor vehicle dealer within the meaning of Chapter 5 of
the Illinois Vehicle Code is made subject to this Section.
(a) The dealer is liable to the purchasing consumer for the
following share of the cost of the repair of Power Train
components for a period of 30 days from date of delivery,
unless the repairs have become necessary by abuse, negligence,
or collision. The burden of establishing that a claim for
repairs is not within this Section shall be on the selling
dealer. The dealer's share of such repair costs is:
(1) in the case of a motor vehicle which is not more than 2
years old, 50%;
(2) in the case of a motor vehicle which is 2 or more, but
less than 3 years old, 25%;
(3) in the case of a motor vehicle which is 3 or more, but

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less than 4 years old, 10%; and
(4) in the case of a motor vehicle which is 4 or more years
old, none.
(b) Notwithstanding the foregoing, such a dealer and a
purchasing consumer may negotiate a sale and purchase that is
not subject to this Section if there is stamped on any purchase
order, contract, agreement, or other instrument to be signed by
the consumer as a part of that transaction, in at least
10-point bold type immediately above the signature line, the
following:
"THIS VEHICLE IS SOLD AS IS WITH NO WARRANTY
AS TO MECHANICAL CONDITION"
(c) As used in this Section, "Power Train components" 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.
(d) The repair liability means that the dealer will make
necessary Power Train component repairs in his shop, or in the
shop of his service affiliate, on the basis of his regular list
price charge for parts and labor, where the flat rate list
price does not exceed 50% of the selling price of the vehicle
at the time repairs are requested.
(e) The age of the vehicle shall be measured according to
the manufacturer's model year designation as shown on the

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Certificate of Title or Registration Certificate. Vehicles
shall be designated as current year models, one year old, 2
year old, and so forth according to the time that has elapsed
since January 1 of the appropriate model year so designated.
(f) This Section does not preclude the issuance of a
warranty or guarantee by a motor vehicle dealer or motor car
manufacturer that meets or exceeds the basic provisions of
paragraph (a).
(g) After the effective date of this amendatory Act of
1989, executives' and officials' cars when so advertised shall
have been used exclusively by executives of the parent motor
car manufacturer's personnel or by an executive of an
authorized dealer in the same make of car. These cars, so
advertised, shall not have been sold to a member of the public
prior to the appearance of the advertisement.
Any person who violates this Section commits an unlawful
practice within the meaning of this Act.
(Source: P.A. 86-351; 87-1140.)
(Text of Section after amendment by P.A. 99-768)
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 the
effective date of 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

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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 vehicles with more than
150,000 miles at the time of sale. In addition, this Section
does not apply to vehicles with titles that have been branded
"rebuilt" or "flood".
(c) Any sale of a used motor vehicle as described in
subsection (a) may not exclude, modify, or disclaim the implied
warranty of merchantability prescribed in Section 2-314 of the
Uniform Commercial Code or limit the remedies for a breach of
the warranty 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, 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

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motor vehicle functions 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
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;

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(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
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

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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
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

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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
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

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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
day, 500 mile implied warranty of merchantability
identified in this Section.
(m) This Section does not apply to the sale of antique
vehicles, as defined in the Illinois Vehicle Code, or to
collector motor vehicles.
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.)

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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.