HOUSE BILL No. 6018


     September 27, 2000, Introduced by Rep. Switalski and referred to the Committee on Family and Civil Law.


        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:

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           Sec. 1.  As used in this act:

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

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

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

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      selling or leasing the new motor vehicle to another person.

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

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      vehicles a year.







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

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

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      personal, family, or household use.

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

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      an express warranty pursuant to the terms of that warranty.

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

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      right to possession and use of a new motor vehicle.

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

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      the right to possession and use of a new motor vehicle.

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           (d) "Manufacturer" means a person who manufactures, assem-

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      bles, or is a distributor of new motor vehicles and includes an

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      agent of a manufacturer but does not include a new motor vehicle

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      dealer.

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

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      ranty as determined under the uniform commercial code, 1962

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

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      a new motor vehicle.

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

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

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      that is designed as a passenger vehicle, MOTOR HOME, or sport

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

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

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      on less than 4 wheels.

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           (G) "MOTOR HOME" MEANS A MOTOR HOME AS DEFINED IN SECTION

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      32A OF THE MICHIGAN VEHICLE CODE, 1949 PA 300, MCL 257.32A.

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

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



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

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      warranty at the time of purchase or lease.

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

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

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

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

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      and who has an established place of business in this state.

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           (J)  (i)  "Person" means a natural person,  a  sole
   proprie-

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      torship, partnership, corporation, association, unit or agency of

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      government, trust, estate, or other legal entity.

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           (K)  (j)  "Resident of this state" means  as follows 
   ANY OF

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      THE FOLLOWING:

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

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      resident of this state.

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

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      proprietorship or partnership created pursuant to the laws of

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

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           (iii)  For a corporation, a  A corporation that is a domes-

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      tic corporation  and was  created under the laws of this state.

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           (iv)  For an association, an  AN association created pursu-

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      ant to the laws of this state  and its  WHOSE main office is

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      located in this state.

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

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      of government located in this state.

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

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      trust, estate, or other legal entity created pursuant to the laws

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      of this state and that is located in this state.



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

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

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

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      from any other transaction as well as any manufacturer to con-

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      sumer discount, rebate, or incentive appearing in the agreement

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      or contract that the consumer received or that was applied to

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

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      license and registration fees, and similar government charges not

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

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      included as a part of lease price.

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

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

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

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      but excludes debt from any other transaction as well as any manu-

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      facturer to consumer discount, rebate, or incentive appearing in

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      the agreement or contract that the consumer received or that was

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      applied to reduce the purchase cost.  Additionally, any sales

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      tax, license and registration fees, and similar government

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      charges not included elsewhere paid by the consumer are included

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      as a part of purchase price.

















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