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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY BROWNE, ORIE, BOSCOLA, FONTANA, LOGAN, BAKER, RAFFERTY, CORMAN, O'PAKE, COSTA, WAUGH, EARLL, TARTAGLIONE AND FERLO, FEBRUARY 20, 2009 |
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| REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE, FEBRUARY 20, 2009 |
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| AN ACT |
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1 | Amending the act of March 28, 1984 (P.L.150, No.28), entitled, |
2 | as amended, "An act relating to the rights of purchasers of |
3 | defective new motor vehicles," further providing for |
4 | manufacturer's duty for refund or replacement. |
5 | The General Assembly of the Commonwealth of Pennsylvania |
6 | hereby enacts as follows: |
7 | Section 1. Section 5 of the act of March 28, 1984 (P.L.150, |
8 | No.28), known as the Automobile Lemon Law, amended December 13, |
9 | 2001 (P.L.868, No.94), is amended to read: |
10 | Section 5. Manufacturer's duty for refund or replacement. |
11 | (a) Option of purchaser.-- |
12 | (1) If the manufacturer fails to repair or correct a |
13 | nonconformity after a reasonable number of attempts, the |
14 | manufacturer shall, at the option of the purchaser, replace |
15 | the motor vehicle with a comparable motor vehicle of equal |
16 | value or accept return of the vehicle from the purchaser and |
17 | refund to the purchaser the full purchase price or lease |
18 | price, including all collateral charges, less a reasonable |
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1 | allowance for the purchaser's use of the vehicle not |
2 | exceeding 10ยข per mile driven or 10% of the purchase price or |
3 | lease price of the vehicle, whichever is less. Refunds shall |
4 | be made to the purchaser and lienholder, if any, as their |
5 | interests may appear. A reasonable allowance for use shall be |
6 | that amount directly attributable to use by the purchaser |
7 | prior to his first report of the nonconformity to the |
8 | manufacturer. In the event the consumer elects a refund, |
9 | payment shall be made within 30 days of such election. |
10 | (2) A consumer shall not be entitled to a refund or |
11 | replacement if the nonconformity does not substantially |
12 | impair the use, value or safety of the vehicle or the |
13 | nonconformity is the result of abuse, neglect or modification |
14 | or alteration of the motor vehicle by the purchaser. |
15 | (b) Sales tax.--A refund paid to the purchaser under this |
16 | section shall be deemed a trade-in for the purpose of computing |
17 | sales tax under Article II of the act of March 4, 1971 (P.L.6, |
18 | No.2), known as the Tax Reform Code of 1971, if applied to the |
19 | purchase of another motor vehicle within 30 days of its receipt. |
20 | Section 2. The addition of section 5(b) of the act shall |
21 | apply to refunds paid on or after January 1, 2009. |
22 | Section 3. This act shall take effect immediately. |
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