SENATE BILL No. 1053

 

 

February 22, 2006, Introduced by Senator SWITALSKI and referred to the Committee on Commerce and Labor.

 

 

 

     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,"

 

by amending section 1 (MCL 257.1401), as amended by 1998 PA 486.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1. As used in this act:

 

     (a) "Consumer" means 1 or more of the following:

 

     (i) A person who purchases or leases a new motor vehicle for

 

personal, family, or household use and not for the purpose of

 

selling or leasing the new motor vehicle to another person.

 

     (ii) A person who purchases or leases less than 10 new motor

 

vehicles a year.

 

     (iii) A person who purchases or leases 10 or more new motor


 

vehicles a year only if the vehicles are purchased or leased for

 

personal, family, or household use.

 

     (iv) Any other person entitled to enforce the provisions of an

 

express warranty pursuant to the terms of that warranty.

 

     (b) "Lessee" means a person who, under a lease, acquires the

 

right to possession and use of a new motor vehicle.

 

     (c) "Lessor" means a person who, under a lease, transfers the

 

right to possession and use of a new motor vehicle.

 

     (d) "Manufacturer" means a person who manufactures, assembles,

 

or is a distributor of new motor vehicles and includes an agent of

 

a manufacturer but does not include a new motor vehicle dealer.

 

     (e) "Manufacturer's express warranty" means an express

 

warranty as determined under the uniform commercial code, 1962 PA

 

174, MCL 440.1101 to 440.11102, offered by the manufacturer on a

 

new motor vehicle.

 

     (f) "Motor vehicle" means a motor vehicle as defined in

 

section 33 of the Michigan vehicle code, 1949 PA 300, MCL 257.33,

 

that is designed as a passenger vehicle, motor home, or sport

 

utility vehicle, but does not include a  motor home,  bus, truck

 

other than a pickup truck or van, or a vehicle designed to travel

 

on less than 4 wheels.

 

     (g) "Motor home" means a motor home as defined in section 32a

 

of the Michigan vehicle code, 1949 PA 300, MCL 257.32a.

 

     (h)  (g)  "New motor vehicle" means a motor vehicle that is

 

purchased or leased in this state or purchased or leased by a

 

resident of this state and is covered by a manufacturer's express

 

warranty at the time of purchase or lease.


 

     (i)  (h)  "New motor vehicle dealer" means a person or that

 

person's agent who holds a dealer agreement for the sale of new

 

motor vehicles, who is engaged in the business of purchasing,

 

leasing, selling, exchanging, or dealing in new motor vehicles, and

 

who has an established place of business in this state.

 

     (j)  (i)  "Person" means a natural person,  a  sole

 

proprietorship, partnership, corporation, limited liability

 

company, association, unit or agency of government, trust, estate,

 

or other legal entity.

 

     (k)  (j)  "Resident of this state" means  as follows  any of

 

the following:

 

     (i)  For an individual, an  An individual who is a legal

 

resident of this state.

 

     (ii)  For a sole proprietorship or partnership, a  A sole

 

proprietorship or partnership created pursuant to the laws of this

 

state  and its  whose main office is located in this state.

 

     (iii)  For a corporation, a  A corporation that is a domestic

 

corporation  and was  created under the laws of this state.

 

     (iv)  For an association, an  An association created pursuant

 

to the laws of this state  and its  whose main office is located in

 

this state.

 

     (v)  For a unit or agency of government, a  A unit or agency

 

of government located in this state.

 

     (vi)  For a trust, estate, or other legal entity, a  A trust,

 

estate, or other legal entity created pursuant to the laws of this

 

state and that is located in this state.

 

     (l)  (k)  "Lease price" means the actual vehicle sales price


 

paid by the lessor including any cash payment by the consumer and

 

the sum equal to any allowance for any trade-in but excludes debt

 

from any other transaction as well as any manufacturer to consumer

 

discount, rebate, or incentive appearing in the agreement or

 

contract that the consumer received or that was applied to reduce

 

the purchase or lease cost. Additionally, any sales tax, license

 

and registration fees, and similar government charges not included

 

elsewhere paid by the lessor on behalf of the lessee are included

 

as a part of lease price.

 

     (m)  (l)  "Purchase price" means the actual vehicle sales price

 

listed on the buyer's order including any cash payment by the

 

consumer and the sum equal to any allowance for any trade-in but

 

excludes debt from any other transaction as well as any

 

manufacturer to consumer discount, rebate, or incentive appearing

 

in the agreement or contract that the consumer received or that was

 

applied to reduce the purchase cost. Additionally, any sales tax,

 

license and registration fees, and similar government charges not

 

included elsewhere paid by the consumer are included as a part of

 

purchase price.