SENATE BILL No. 30

 

 

January 21, 2003, 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:                      

                                                                                

1       Sec. 1.  As used in this act:                                               

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

5   selling or leasing the new motor vehicle to another person.                 

                                                                                

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

                                                                                

7   vehicles a year.                                                            

                                                                                

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

                                                                                

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

                                                                                

10  personal, family, or household use.                                         


                                                                                

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

                                                                                

2   an express warranty pursuant to the terms of that warranty.                 

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

8   assembles, or is a distributor of new motor vehicles and includes           

                                                                                

9   an agent of a manufacturer but does not include a new motor                 

                                                                                

10  vehicle dealer.                                                             

                                                                                

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

                                                                                

12  warranty as determined under the uniform commercial code, 1962              

                                                                                

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

                                                                                

14  a new motor vehicle.                                                        

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

20  on less than 4 wheels.                                                      

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

26  warranty at the time of purchase or lease.                                  

                                                                                

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


                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

6   proprietorship, partnership, corporation, limited liability                 

                                                                                

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

                                                                                

8   estate, or other legal entity.                                              

                                                                                

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

                                                                                

10  the following:                                                              

                                                                                

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

                                                                                

12  resident of this state.                                                     

                                                                                

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

                                                                                

14  proprietorship or partnership created pursuant to the laws of               

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

20  in this state.                                                              

                                                                                

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

                                                                                

22  of government located in this state.                                        

                                                                                

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

                                                                                

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

                                                                                

25  this state and that is located in this state.                               

                                                                                

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

                                                                                

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


                                                                                

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

                                                                                

2   from any other transaction as well as any manufacturer to                   

                                                                                

3   consumer discount, rebate, or incentive appearing in the                    

                                                                                

4   agreement or contract that the consumer received or that was                

                                                                                

5   applied to reduce the purchase or lease cost.  Additionally, any            

                                                                                

6   sales tax, license and registration fees, and similar government            

                                                                                

7   charges not included elsewhere paid by the lessor on behalf of              

                                                                                

8   the lessee are included as a part of lease price.                           

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

12  but excludes debt from any other transaction as well as any                 

                                                                                

13  manufacturer to consumer discount, rebate, or incentive appearing           

                                                                                

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

                                                                                

15  was applied to reduce the purchase cost.  Additionally, any sales           

                                                                                

16  tax, license and registration fees, and similar government                  

                                                                                

17  charges not included elsewhere paid by the consumer are included            

                                                                                

18  as a part of purchase price.