Bill Text: CA AB2837 | 2015-2016 | Regular Session | Amended

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Bill Title: Motor vehicle sales: warranty disclosures.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2016-11-30 - From committee without further action. [AB2837 Detail]

Download: California-2015-AB2837-Amended.html

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BILL NUMBER: AB 2837	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 11, 2016

INTRODUCED BY   Assembly Member Jones

                        FEBRUARY 19, 2016

   An act to add Section 1793.27 to the Civil Code, relating to
consumer warranties.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2837, as amended, Jones. Motor vehicle sales: warranty
disclosures.
   The existing Song-Beverly Consumer Warranty Act and the existing
federal Magnuson-Moss Warranty-Federal Trade Commission Improvement
Act provide consumer warranty protection to buyers of various
products. Existing law requires that every manufacturer, distributor,
or retailer which makes express warranties with respect to consumer
goods fully set forth those warranties in simple and readily
understood language, as specified.
   This bill would require a motor vehicle dealer, as defined, to
deliver to a buyer at the time of sale a specifically worded written
statement relating to warranties, including that federal law
prohibits  conditioning a warranty on the buyer's use of a
replacement product or repair services identified by brand or name,
unless the article or service is provided without charge to the buyer
or the dealer has received a waiver from the Federal Trade
Commission.   the dealer from denying warranty coverage
because routine maintenance or repairs were performed by someone
other than the dealer or that aftermarket or recycled parts, as
defined, were used, unless the part was defective or wasn't installed
correctly and is proven to have damaged another part that is covered
under warranty. The statement would also be required to refer buyers
to the Federal Trade Commission's Internet Web site for further
information regarding automobile warranties. 
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 1793.27 is added to the Civil Code, to read:
   1793.27.  (a) A motor vehicle dealer, as defined in Section 285 of
the Vehicle Code, shall deliver to the buyer of a motor vehicle, as
defined in Section 791, at the time of sale a statement in writing,
printed in no less than 10-point boldface type, as follows:

   "The Magnuson-Moss Warranty Act, 15 USC 2301 et seq., prohibits
warrantors from conditioning warranties on the consumer's use of a
replacement product or repair services identified by brand or name,
unless the article or service is provided without charge to the
consumer or the warrantor has received a waiver from the Federal
Trade Commission. It is unlawful for a manufacturer or dealer to void
your warranty or deny coverage under the warranty simply because you
used an aftermarket part or recycled part. If it turns out that an
aftermarket part or recycled part was itself defective or was not
installed correctly and it causes damage to another part that is
covered under the warranty, the manufacturer or dealer has the right
to deny coverage for that part and charge you for any repairs. The
Federal Trade Commission requires the manufacturer or dealer to show
that the aftermarket part or recycled part caused the need for
repairs before denying warranty coverage."  
   The Magnuson-Moss Warranty Act, 15 U.S.C. 2301 et seq., which is
enforced by the Federal Trade Commission, states "No warrantor of a
consumer product may condition his written or implied warranty of
such product on the consumer's using, in connection with such
product, any article or service (other than article or service
provided without charge under the terms of the warranty) which is
identified by brand, trade, or corporate name... " This language
means that it is illegal for a dealer to deny your warranty coverage
simply because you had routine maintenance or repairs performed by
someone other than the franchised dealer. It is also illegal for
companies to void your warranty or deny coverage under the warranty
simply because you used an aftermarket or recycled part. If it turns
out that the aftermarket or recycled part was itself defective or
wasn't installed correctly and it causes damage to another part that
is covered under the warranty, the manufacturer or dealer has the
right to deny coverage for that part and charge you for any repairs.
The Federal Trade Commission says the manufacturer or dealer must
show that the aftermarket or recycled part caused the need for
repairs before denying warranty coverage. The Auto Warranties and
Routine Maintenance Bulletin issued by the Federal Trade Commission
can be found on the commission's website under "Auto Service
Contracts and Warranties." 

   (b) For purposes of this section:
   (1) "Aftermarket part" means a part that was made by a company
other than the vehicle manufacturer or the original equipment
manufacturer.
   (2) "Recycled part" means a part that was made for and installed
in a new vehicle by the manufacturer or the original equipment
manufacturer and later removed from the vehicle and made available
for resale or reuse.