S*503 Session 108 (1989-1990)
S*0503(Rat #0218, Act #0142 of 1989) General Bill, By Land, Bryan, J.C. Hayes,
J.C. Lindsay, I.E. Lourie, P.B. McLeod, T.W. Mitchell, Moore, Patterson,
T.H. Pope and Thomas
A Bill to amend the Code of Laws of South Carolina, 1976, by adding Chapter 28
to Title 56 so as to provide for the enforcement of motor vehicle express
warranties.
03/09/89 Senate Introduced and read first time SJ-5
03/09/89 Senate Referred to Committee on Transportation SJ-6
04/11/89 Senate Committee report: Favorable with amendment
Transportation SJ-11
04/12/89 Senate Amended SJ-22
04/12/89 Senate Read second time SJ-23
04/18/89 Senate Read third time and sent to House SJ-13
04/19/89 House Introduced and read first time HJ-12
04/19/89 House Referred to Committee on Labor, Commerce and
Industry HJ-13
05/10/89 House Committee report: Favorable with amendment Labor,
Commerce and Industry HJ-6
05/22/89 House Amended HJ-40
05/22/89 House Read second time HJ-41
05/22/89 House Pending Motion: Reconsider vote whereby read 2nd
time HJ-41
05/23/89 House Debate adjourned HJ-50
05/23/89 House Reconsider vote whereby deb. adj. on motion to
reconsider HJ-57
05/23/89 House Reconsider vote whereby read 2nd time HJ-57
05/23/89 House Debate interrupted HJ-59
05/24/89 House Debate adjourned until Thursday, May 25, 1989 HJ-27
05/25/89 House Read second time HJ-28
05/25/89 House Unanimous consent for third reading on next
legislative day HJ-29
05/26/89 House Read third time and returned to Senate with
amendments HJ-50
05/26/89 Senate Concurred in House amendment and enrolled SJ-6
06/02/89 Ratified R 218
06/05/89 Signed By Governor
06/05/89 Effective date 10/03/89
06/05/89 Act No. 142
06/05/89 See act for exception to or explanation of
effective date
06/09/89 Copies available
(A142, R218, S503)
AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 28
TO TITLE 56 SO AS TO PROVIDE FOR THE ENFORCEMENT OF MOTOR VEHICLE EXPRESS
WARRANTIES.
Be it enacted by the General Assembly of the State of South Carolina:
Enforcement of motor vehicle express warranties
SECTION 1. The 1976 Code is amended by adding to Title 56:
"CHAPTER 28
Enforcement of
Motor Vehicle Express Warranties
Section 56-28-10. As used in this chapter:
(1) 'Consumer' means the purchaser or lessor, other than for purposes of
resale, of a motor vehicle normally used for personal, family, or household
purposes and subject to the manufacturer's express warranty, and any other person
entitled by the warranty to enforce the obligations of the warranty.
(2) 'Manufacturer' means any person, resident, or nonresident, who
manufactures or assembles or imports or distributes new motor vehicles which are
to be sold in the State.
(3) 'Manufacturer's express warranty' or 'warranty' means the written
warranty, so labeled, of the manufacturer of a new motor vehicle, including any
terms or conditions precedent to the enforcement of obligations under that
warranty.
(4) 'Motor vehicle' means a passenger motor vehicle, as classified by
Section 56-3-630, but excluding the living portion of recreational vehicles,
trucks with a gross vehicle weight over six thousand pounds and off road
vehicles, which is sold and registered in this State.
(5) A 'new motor vehicle' means a passenger motor vehicle which has been
sold to a new motor vehicle dealer by a manufacturer and which has not been used
for other than demonstration purposes and on which the original title has not
been issued from the new motor vehicle dealer.
(6) 'Nonconformity' means a defect or condition that substantially impairs
the use, value, or safety of a motor vehicle, but does not include a defect or
condition that results from an accident, modification, or alteration of the motor
vehicle by persons other than the manufacturer or its authorized service agent.
Section 56-28-20. Every manufacturer, in a format and a form that must be
mailed annually to each manufacturer approved by the Administrator of the
Department of Consumer Affairs, shall provide a written summary of all motor
vehicles repurchased or replaced under this chapter no less than once each
calendar year. In addition, every manufacturer shall make available any
paperwork, reports, or other information regarding vehicles subject to this
chapter upon request by the administrator. Failure to supply either the written
summaries of repurchased vehicles or respond to reasonable requests for
information by the administrator subjects the manufacturer to an administrative
penalty not to exceed one thousand dollars for each violation which the
administrator in his discretion may impose.
Section 56-28-30. If a new motor vehicle does not conform to all applicable
express warranties within the first twelve months of purchase or the first twelve
thousand miles of operation, whichever occurs first, and the consumer reports the
nonconformity to the manufacturer or its agent during the term of the express
warranties, the manufacturer, or its agent, shall make those repairs as are
necessary to conform the vehicle to the express warranties at no cost to the
consumer, notwithstanding the fact that the repairs are made after the expiration
of the term.
Section 56-28-40. If, within the term specified in Section 56-28-30, the
manufacturer, through its agents or authorized dealer, is unable to conform the
motor vehicle to any applicable express warranty by repairing or correcting any
defect or condition which substantially impairs the use, market value, or safety
of the motor vehicle to the consumer after a reasonable number of attempts, the
manufacturer shall replace the motor vehicle with a comparable motor vehicle, or
at its option, accept return of the vehicle from the consumer and refund to the
consumer the full purchase price as delivered including applicable finance
charges, sales taxes, license fees, registration fees, and any other similar
governmental charges, less a reasonable allowance for the consumer's use of the
vehicle. Refunds must be made to the consumer and lienholder, if any, as their
interest may appear on the record of ownership kept by the Division of Motor
Vehicles. A reasonable allowance for use must be that amount directly
attributable to use by the consumer before his first report of the nonconformity
to the manufacturer, agent, or dealer, and must be calculated by multiplying the
full purchase price of the vehicle by a fraction having as its denominator one
hundred twenty thousand and having as its numerator the number of miles that the
vehicle traveled before the first report of nonconformity. The consumer is not
entitled to a refund or replacement if:
(1) the nonconformity does not substantially impair the motor vehicle's use,
market value, or safety;
(2) the nonconformity is the result of abuse, neglect, or modification or
alteration of the motor vehicle by the consumer.
Section 56-28-50. (A) It is presumed that a reasonable number of attempts
have been undertaken to conform a motor vehicle to the applicable express
warranties if:
(1) the same nonconformity has been subject to repair three or more times
by the manufacturer, or its agent, within the express warranty term, but the
nonconformity continues to exist; or
(2) the vehicle is out of service by reason of repair for a cumulative total
of thirty or more calendar days during the express warranty. The term of an
express warranty, and the twenty-day period must be extended by any period of
time during which repair services are not available to the consumer because of
a war, invasion, strike, fire, flood, or other natural disaster.
(B) The manufacturer must provide information regarding consumer complaint
remedies with each new motor vehicle. It is the responsibility of the consumer,
or his representative, before availing himself of the provisions of this chapter,
to give written notification to the manufacturer of the need for the repair of
the nonconformity, in order to allow the manufacturer a final opportunity to cure
the alleged defect if the manufacturer has clearly and prominently informed the
consumer of the requirement of written notification to the manufacturer at the
time of sale. The manufacturer, within ten business days, must notify the
consumer of a reasonably accessible repair facility of a franchised new vehicle
dealer to conform the new vehicle to the express warranty. After delivery of the
new vehicle to an authorized repair facility by the consumer, the manufacturer
must attempt immediately to repair the vehicle within a period not to exceed ten
business days in order to conform the new motor vehicle to the express warranty.
If the manufacturer is unable to repair properly the vehicle within the final
ten-business-day period, the manufacturer must replace the vehicle with an
identical or reasonably equivalent vehicle or refund the purchase price subject
to the provisions of Section 56-28-40.
(C) Upon notification from the consumer that the new vehicle has not been
conformed to the express warranty, the manufacturer shall inform the consumer if
an informal dispute settlement procedure has been established by the manufacturer
as enumerated in Section 56-28-60. However, if prior notice by the manufacturer
of an informal dispute settlement procedure has been given, no further notice is
required.
(D) Any consumer who finally prevails in any action brought under this
chapter, may be allowed by the court to recover as part of the judgment a sum
equal to the aggregate amount of cost and expenses (including attorney's fees
based on actual time expended) and other such costs which are directly
attributable to the nonconformity of the motor vehicle determined by the court
to have been reasonably incurred by the plaintiff for or in connection with the
commencement and prosecution of such action, unless the court in its discretion
determines that such an award of attorney's fees would be inappropriate.
(E) All written notifications required by this section shall be sent by
registered, certified or express mail.
Section 56-28-60. If a manufacturer has established an informal dispute
settlement procedure which substantially complies with Title 16 of the Code of
Federal Regulations, Part 703, or if the manufacturer participates in a
consumer-industry appeals, arbitration, or mediation panel or board, whose
decisions are binding on the manufacturer, the provisions of Section 56-28-40
concerning refunds or replacement do not apply to any consumer who has not first
resorted to those procedures or to the alternate procedure provided in Section
56-28-90.
Section 56-28-70. Any action brought under this chapter must be commenced
within three years following the date of original delivery of the motor vehicle
to the consumer.
Section 56-28-80. Nothing in this chapter may be construed as imposing any
liability on a motor vehicle dealer or creating a cause of action by a consumer
against a motor vehicle dealer under Section 56-28-40. The manufacturer shall
not charge back or require reimbursement by the dealer for any costs, including,
but not limited to, any refunds or vehicle replacements incurred by the
manufacturer arising out of this chapter in the absence of evidence that the
related repairs had been carried out by the dealer in a manner substantially
inconsistent with the manufacturer's published instructions.
Section 56-28-90. The Administrator of the Department of Consumer Affairs may
establish by regulation a state arbitration board consisting of five members
appointed by him to serve at his pleasure. The board shall review matters
involving manufacturers that have not created an informal dispute settlement
procedure that substantially complies with Title 16 of the Code of Federal
Regulations, Part 703. The cost of the arbitration board must be borne by the
manufacturer of the vehicle purchased or leased by the consumer.
Section 56-28-100. Any vehicle required to be repurchased by a manufacturer
under this chapter or any other provision of law relating to motor vehicle
warranties may not be resold, reassigned, or retransferred, either at wholesale
or retail in this State, unless:
(1) The manufacturer notifies the Administrator of the Department of Consumer
Affairs within thirty calendar days, in writing, of the vehicle identification
number of that motor vehicle, the reason that the vehicle was repurchased, and
provides a statement that all necessary repairs and adjustments have been made
and that the vehicle meets acceptable operating standards.
(2) The manufacturer provides a written warranty to the subsequent retail
purchaser of the vehicle covering the vehicle for twelve months or twelve
thousand miles. The warranty must expressly include any component related to the
manufacturer's decision to repurchase the vehicle.
(3) The manufacturer shall disclose to any dealer or other wholesale purchaser
of the fact that the vehicle was required to be repurchased under this chapter
or another provision of law relating to motor vehicle warranties.
Section 56-28-110. Every subsequent purchaser must be notified by the seller
of the fact that the vehicle was required to be repurchased under the terms of
this chapter or another provision of law relating to motor vehicle warranties.
Failure to notify properly any purchaser of the requirements of this section
subjects the seller to an administrative penalty to be imposed by the
administrator up to a maximum of five hundred dollars for each vehicle."
Time effective
SECTION 2. This act takes effect one hundred twenty days after the approval by
the Governor, and applies only to new motor vehicles purchased after the
effective date of this act. |