January 25, 2006, Introduced by Reps. Espinoza, Plakas, Alma Smith, Kathleen Law, McDowell, Lipsey, Kolb, Wojno, Vagnozzi, Condino, Brown, Anderson and Leland and referred to the Committee on Commerce.
A bill to amend 1986 PA 87, entitled
"An act regarding warranties on new motor vehicles; to require
certain repairs to new motor vehicles; to provide remedies for the
failure to repair such vehicles; and to prescribe duties for
certain state agencies,"
(MCL 257.1401 to 257.1410) by amending the title, as amended by
1998 PA 486, and by adding section 9a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
TITLE
An
act regarding warranties on new motor vehicles; to require
certain
repairs to new motor vehicles repair
of certain defects in
or conditions of a new motor vehicle; to provide remedies for the
failure
to repair such vehicles those defects or conditions; to
require certain disclosures and warranties on resale of a motor
vehicle returned to a manufacturer under this act; to prescribe
penalties and provide remedies for a failure to provide disclosures
and warranties; and to prescribe duties for certain state agencies.
Sec. 9a. (1) All of the following apply to a motor vehicle
returned to a manufacturer under this act:
(a) The manufacturer shall fully repair the defect or
condition that was the basis for returning the motor vehicle to the
manufacturer under this act before transferring the motor vehicle
to a dealer for resale.
(b) A dealer that acquires the motor vehicle for resale shall
provide any prospective purchaser with a vehicle history that
includes a description of any warranty work that was performed on
the motor vehicle by or on behalf of the manufacturer, any repair
work performed or attempted on the motor vehicle by the
manufacturer for purposes of addressing a defect or condition under
this act, any repair or warranty work performed on the motor
vehicle by the dealer, and any other repair or warranty work on the
motor vehicle known to the manufacturer or dealer. The manufacturer
shall provide the dealer with any repair, warranty, or other
information possessed by the manufacturer concerning the motor
vehicle upon request.
(c) If a dealer violates subdivision (b) in a sale of the
motor vehicle, the purchaser may return the motor vehicle to the
dealer and the dealer shall accept return of the motor vehicle,
refund to the purchaser and to any holder of a perfected security
interest in the motor vehicle the full purchase price paid for the
motor vehicle, reimburse the purchaser or holder for any finance
charge, sales tax, shipping costs, and collateral costs paid by the
purchaser or holder in connection with the sale, and reimburse the
purchaser a reasonable amount for his or her inconvenience.
(d) The manufacturer of the motor vehicle shall provide any
purchaser of the motor vehicle with an express warranty that
warrants against a recurrence of the defect or condition that was
the basis for returning the motor vehicle to the manufacturer under
this act, unless the recurrence of the defect or condition is the
result of abuse or neglect of the motor vehicle by a purchaser of
the motor vehicle. A warranty provided under this subdivision shall
cover any purchaser and cover the vehicle for at least 90 days or
3,000 miles of use, whichever occurs first.
(2) A dealer or manufacturer that violates this section is
guilty of a misdemeanor punishable by a fine of not less than
$50,000.00.
(3) As used in this section, "dealer" means a new vehicle
dealer or any other dealer, as dealer is defined in section 11 of
the Michigan vehicle code, 1949 PA 300, MCL 257.11.