S-1818.1 _______________________________________________
SENATE BILL 5880
_______________________________________________
State of Washington 53rd Legislature 1993 Regular Session
By Senator McCaslin
Read first time 02/22/93. Referred to Committee on Labor & Commerce.
AN ACT Relating to motor vehicle warranties; and amending RCW 19.118.021 and 19.118.041.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 19.118.021 and 1990 c 239 s 1 are each amended to read as follows:
Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
(1) "Board" means new motor vehicle arbitration board.
(2) "Collateral charges" means any sales or lease related charges including but not limited to sales tax, use tax, arbitration service fees, unused license fees, unused registration fees, unused title fees, finance charges, prepayment penalties, credit disability and credit life insurance costs not otherwise refundable, any other insurance costs prorated for time out of service, transportation charges, dealer preparation charges, or any other charges for service contracts, undercoating, rustproofing, or factory or dealer installed options.
(3) "Condition" means a general problem that results from a defect or malfunction of one or more parts, or their improper installation by the manufacturer, its agents, or the new motor vehicle dealer.
(4) "Consumer" means any person who has entered into an agreement or contract for the transfer, lease, or purchase of a new motor vehicle, other than for purposes of resale or sublease, during the duration of the warranty period defined under this section.
(5) "Court" means the superior court in the county where the consumer resides, except if the consumer does not reside in this state, then the superior court in the county where an arbitration hearing or determination was conducted or made pursuant to this chapter.
(6) "Disabled" means that a new motor vehicle will not start or cannot propel itself without causing damage or a violation of law.
(7) "Incidental costs" means any reasonable expenses incurred by the consumer in connection with the repair of the new motor vehicle, including any towing charges and the costs of obtaining alternative transportation.
(((7))) (8)
"Manufacturer" means any person engaged in the business of
constructing or assembling new motor vehicles or engaged in the business of
importing new motor vehicles into the United States for the purpose of selling
or distributing new motor vehicles to new motor vehicle dealers.
"Manufacturer" does not include any person engaged in the business of
set-up of motorcycles as an agent of a new motor vehicle dealer if the person
does not otherwise construct or assemble motorcycles.
(((8))) (9)
"Motorcycle" means any motorcycle as defined in RCW 46.04.330 which
has an engine displacement of at least seven hundred fifty cubic centimeters.
(((9))) (10) "New motor
vehicle" means any new self-propelled vehicle, including a new motorcycle,
primarily designed for the transportation of persons or property over the
public highways that, after original retail purchase or lease in this state,
was initially registered in this state or for which a temporary motor vehicle
license was issued pursuant to RCW 46.16.460, but does not include vehicles
purchased or leased by a business as part of a fleet of ten or more vehicles. If
the motor vehicle is a motor home, this chapter shall apply to the
self-propelled vehicle and chassis, but does not include those portions of the
vehicle designated, used, or maintained primarily as a mobile dwelling, office,
or commercial space. The term "new motor vehicle" does not include
trucks with nineteen thousand pounds or more gross vehicle weight rating. The
term "new motor vehicle" includes a demonstrator or lease-purchase
vehicle as long as a manufacturer's warranty was issued as a condition of sale.
(((10))) (11) "New motor
vehicle dealer" means a person who holds a dealer agreement with a
manufacturer for the sale of new motor vehicles, who is engaged in the business
of purchasing, selling, servicing, exchanging, or dealing in new motor
vehicles, and who is licensed as a dealer by the state of Washington.
(((11))) (12)
"Nonconformity" means a defect, serious safety defect, or condition
that substantially impairs the use, value, or safety of a new motor vehicle,
but does not include a defect or condition that is the result of abuse,
neglect, or unauthorized modification or alteration of the new motor vehicle.
(((12))) (13) "Purchase
price" means the cash price of the new motor vehicle appearing in the
sales agreement or contract, including any allowance for a trade-in vehicle;
"purchase price" in the instance of a lease means the purchase price
or value of the vehicle declared to the department of licensing for purposes of
tax collection.
Where the consumer is a second or subsequent purchaser, lessee, or transferee and the consumer selects repurchase of the motor vehicle, "purchase price" means the purchase price of the second or subsequent purchase or lease. Where the consumer is a second or subsequent purchaser, lessee, or transferee and the consumer selects replacement of the motor vehicle, "purchase price" means the original purchase price.
(((13))) (14) "Reasonable
offset for use" means the definition provided in RCW 19.118.041(1)(c) for
a new motor vehicle other than a new motorcycle. The reasonable offset for use
for a new motorcycle shall be computed by the number of miles that the vehicle
traveled before the manufacturer's acceptance of the vehicle upon repurchase or
replacement multiplied by the purchase price, and divided by twenty-five
thousand.
(((14))) (15) "Reasonable
number of attempts" means the definition provided in RCW 19.118.041.
(((15))) (16) "Replacement
motor vehicle" means a new motor vehicle that is identical or reasonably
equivalent to the motor vehicle to be replaced, as the motor vehicle to be
replaced existed at the time of original purchase or lease, including any
service contract, undercoating, rustproofing, and factory or dealer installed
options.
(((16))) (17) "Serious
safety defect" means a life-threatening malfunction or nonconformity that
impedes the consumer's ability to control or operate the new motor vehicle for
ordinary use or reasonable intended purposes or creates a risk of fire or
explosion.
(((17))) (18) "Substantially
impair" means to render the new motor vehicle unreliable, or unsafe for
ordinary use, or to diminish the resale value of the new motor vehicle below
the average resale value for comparable motor vehicles.
(((18))) (19)
"Warranty" means any implied warranty, any written warranty of the
manufacturer, or any affirmation of fact or promise made by the manufacturer in
connection with the sale of a new motor vehicle that becomes part of the basis
of the bargain. The term "warranty" pertains to the obligations of
the manufacturer in relation to materials, workmanship, and fitness of a new
motor vehicle for ordinary use or reasonably intended purposes throughout the
duration of the warranty period as defined under this section.
(((19))) (20) "Warranty
period" means the period ending two years after the date of the original
delivery to the consumer of a new motor vehicle, or the first twenty-four
thousand miles of operation, whichever occurs first.
Sec. 2. RCW 19.118.041 and 1989 c 347 s 2 are each amended to read as follows:
(1) If the manufacturer, its agent, or the new motor vehicle dealer is unable to conform the new motor vehicle to the warranty by repairing or correcting any nonconformity after a reasonable number of attempts, the manufacturer, within forty calendar days of a consumer's written request to the manufacturer's corporate, dispute resolution, zone, or regional office address shall, at the option of the consumer, replace or repurchase the new motor vehicle.
(a) The replacement motor vehicle shall be identical or reasonably equivalent to the motor vehicle to be replaced as the motor vehicle to be replaced existed at the time of original purchase or lease, including any service contract, undercoating, rustproofing, and factory or dealer installed options. Where the manufacturer supplies a replacement motor vehicle, the manufacturer shall be responsible for sales tax, license, and registration fees. Compensation for a reasonable offset for use shall be paid by the consumer to the manufacturer in the event that the consumer accepts a replacement motor vehicle.
(b) When repurchasing the new motor vehicle, the manufacturer shall refund to the consumer the purchase price, all collateral charges, and incidental costs, less a reasonable offset for use. When repurchasing the new motor vehicle, in the instance of a lease, the manufacturer shall refund to the consumer all payments made by the consumer under the lease including but not limited to all lease payments, trade-in value or inception payment, security deposit, all collateral charges and incidental costs less a reasonable offset for use. The manufacturer shall make such payment to the lessor and/or lienholder of record as necessary to obtain clear title to the motor vehicle and upon the lessor's and/or lienholder's receipt of that payment and payment by the consumer of any late payment charges, the consumer shall be relieved of any future obligation to the lessor and/or lienholder.
(c) The reasonable offset for use shall be computed by multiplying the number of miles that the vehicle traveled directly attributable to use by the consumer times the purchase price, and dividing the product by one hundred twenty-five thousand. Where the consumer is a second or subsequent purchaser, lessee, or transferee of the motor vehicle and the consumer selects repurchase of the motor vehicle, "the number of miles that the vehicle traveled" shall be calculated from the date of purchase or lease by the consumer. Where the consumer is a second or subsequent purchaser, lessee, or transferee of the motor vehicle and the consumer selects replacement of the motor vehicle, "the number of miles that the vehicle traveled" shall be calculated from the original purchase, lease, or in-service date.
(2) Reasonable number of attempts shall be
deemed to have been undertaken by the manufacturer, its agent, or the new motor
vehicle dealer to conform the new motor vehicle to the warranty within the
warranty period, if: (a) The same serious safety defect has been subject to
diagnosis or repair two or more times, at least one of which is during the
period of coverage of the applicable manufacturer's written warranty, and the
serious safety defect continues to exist; (b) the same nonconformity has been
subject to diagnosis or repair four or more times, at least one of which is
during the period of coverage of the applicable manufacturer's written
warranty, and the nonconformity continues to exist; (c) the new motor
vehicle has been disabled three times within an eighteen-month period for any
reason; or (((c))) (d) the vehicle is out-of-service by
reason of diagnosis or repair of one or more nonconformities for a cumulative
total of thirty calendar days, at least fifteen of them during the period of
the applicable manufacturer's written warranty. For purposes of this
subsection, the manufacturer's written warranty shall be at least one year
after the date of the original delivery to the consumer of the vehicle or the
first twelve thousand miles of operation, whichever occurs first.
(3) No new motor vehicle dealer may be held liable by the manufacturer for any collateral charges, incidental costs, purchase price refunds, or vehicle replacements. Manufacturers shall not have a cause of action against dealers under this chapter. Consumers shall not have a cause of action against dealers under this chapter, but a violation of any responsibilities imposed upon dealers under this chapter is a per se violation of chapter 19.86 RCW. Consumers may pursue rights and remedies against dealers under any other law, including chapters 46.70 and 46.71 RCW. Manufacturers and consumers may not make dealers parties to arbitration board proceedings under this chapter.
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