THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY BROWNE, ORIE, BOSCOLA, FONTANA, LOGAN, BAKER, RAFFERTY, CORMAN, O'PAKE, COSTA, WAUGH, EARLL, TARTAGLIONE AND FERLO, FEBRUARY 20, 2009

REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE, FEBRUARY 20, 2009  

AN ACT

Amending the act of March 28, 1984 (P.L.150, No.28), entitled,

as amended, "An act relating to the rights of purchasers of

defective new motor vehicles," further providing for

manufacturer's duty for refund or replacement.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 5 of the act of March 28, 1984 (P.L.150,

No.28), known as the Automobile Lemon Law, amended December 13,

2001 (P.L.868, No.94), is amended to read:

Section 5.  Manufacturer's duty for refund or replacement.

(a)  Option of purchaser.--

(1)  If the manufacturer fails to repair or correct a

nonconformity after a reasonable number of attempts, the

manufacturer shall, at the option of the purchaser, replace

the motor vehicle with a comparable motor vehicle of equal

value or accept return of the vehicle from the purchaser and

refund to the purchaser the full purchase price or lease

price, including all collateral charges, less a reasonable

allowance for the purchaser's use of the vehicle not

exceeding 10¢ per mile driven or 10% of the purchase price or

lease price of the vehicle, whichever is less. Refunds shall

be made to the purchaser and lienholder, if any, as their

interests may appear. A reasonable allowance for use shall be

that amount directly attributable to use by the purchaser

prior to his first report of the nonconformity to the

manufacturer. In the event the consumer elects a refund,

payment shall be made within 30 days of such election.

(2)  A consumer shall not be entitled to a refund or

replacement if the nonconformity does not substantially

impair the use, value or safety of the vehicle or the

nonconformity is the result of abuse, neglect or modification

or alteration of the motor vehicle by the purchaser.

(b)  Sales tax.--A refund paid to the purchaser under this

section shall be deemed a trade-in for the purpose of computing

sales tax under Article II of the act of March 4, 1971 (P.L.6,

No.2), known as the Tax Reform Code of 1971, if applied to the

purchase of another motor vehicle within 30 days of its receipt.

Section 2.  The addition of section 5(b) of the act shall

apply to refunds paid on or after January 1, 2009.

Section 3.  This act shall take effect immediately.