AN ACT Relating to used motor vehicles; amending RCW 46.70.011; adding new sections to chapter 46.70 RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1. Section 3, chapter 11, Laws of 1979 as last amended by section 2, chapter 305, Laws of 1981 and RCW 46.70.011 are each amended to read as follows:

As used in this chapter:

(1) "Vehicle" means and includes every device capable of being moved upon a public highway and in, upon, or by which any persons or property is or may be transported or drawn upon a public highway, excepting devices moved by human or animal power or used exclusively upon stationary rails or tracks.

(2) "Motor vehicle" shall mean every vehicle which is self-propelled and every vehicle which is propelled by electric power obtained from overhead trolley wires, but not operated upon rails, and which is required to be registered and titled under Title 46 RCW, Motor Vehicles.

(3) "Used vehicle" means any vehicle driven more than the limited use necessary in moving or road testing a new vehicle before delivery to a consumer, but does not include any vehicle sold only for scrap or parts.

(4) "Warranty" means any undertaking in writing, in connection with the sale by a dealer of a used vehicle, to refund, repair, replace, maintain, or take other action with respect to such vehicle and provided at no extra charge beyond the price of the used vehicle.

(5) "Vehicle dealer" means any person, firm, association, corporation or trust, not excluded by subsection ((~~(4)~~)) (6) of this section, engaged in the business of buying, selling, exchanging, offering, brokering, leasing with an option to purchase, auctioning, soliciting, or advertising the sale of new or used vehicles, or providing or licensing for use facilities and/or services for compensation of any kind which bring together potential buyers and sellers: PROVIDED, That vehicle dealers shall be classified as follows:

(a) A "motor vehicle dealer" shall be a vehicle dealer that deals in new and used motor vehicles;

(b) A "mobile home and travel trailer dealer" shall be a vehicle dealer that deals in mobile homes or travel trailers, or both;

(c) A "miscellaneous vehicle dealer" shall be a vehicle dealer that deals in motorcycles and/or vehicles other than motor vehicles or mobile homes and travel trailers.

((~~(4)~~)) (6) The term "vehicle dealer" does not include:

(a) Receivers, trustees, administrators, executors, guardians, or other persons appointed by, or acting under a judgment or order of any court; or

(b) Public officers while performing their official duties; or

(d) Any person engaged in an isolated sale of a vehicle in which he is the registered or legal owner, or both, thereof; or

(e) Any person, firm, association, corporation or trust, engaged in the selling of equipment other than vehicles, used for agricultural or industrial purposes; or

(f) A real estate broker licensed under chapter 18.85 RCW, or his authorized representative, who, on behalf of the legal or registered owner of a used mobile home negotiates the purchase, sale, or exchange of the used mobile home in conjunction with the purchase, sale, exchange, rental, or lease of the land upon which the used mobile home is located and the real estate broker is not acting as an agent, subagent, or representative of a vehicle dealer licensed under this chapter.

((~~(5)~~)) (7) "Vehicle salesman" means any person who for any form of compensation sells, auctions, leases with an option to purchase, or offers to sell or to so lease vehicles on behalf of a vehicle dealer.

((~~(6)~~)) (8) The term "department" means the department of licensing which shall administer and enforce the provisions of this chapter.

((~~(7)~~)) (9) "Director" means the director of licensing.

((~~(8)~~)) (10) "Manufacturer" means any person, firm, association, corporation or trust, resident or nonresident, who manufactures or assembles new and unused vehicles and shall further include the terms:

(a) "Distributor" which means any person, firm, association, corporation or trust, resident or nonresident, who in whole or in part offers for sale, sells or distributes any new and unused vehicle to vehicle dealers or who maintains factory representatives.

(b) "Factory branch" which means a branch office maintained by a manufacturer for the purpose of selling or offering for sale, vehicles to a distributor, wholesaler or vehicle dealer, or for directing or supervising in whole or in part factory or distributor representatives, and shall further include any sales promotion organization, whether the same be a person, firm or corporation, which is engaged in promoting the sale of new and unused vehicles in this state of a particular brand or make to vehicle dealers.

(c) "Factory representative" which means a representative employed by a manufacturer, distributor, or factory branch for the purpose of making or promoting for the sale of his, its, or their vehicles or for supervising or contracting with his, its, or their dealers or prospective dealers.

((~~(9)~~)) (11) "Established place of business" means a permanent, enclosed commercial building located within the state of Washington easily accessible and open to the public, at all reasonable times, with an improved display area of not less than three thousand square feet in or immediately adjoining said building, and at which the business of a vehicle dealer, including the display and repair of vehicles, may be lawfully carried on in accordance with the terms of all applicable building code, zoning and other land-use regulatory ordinances and in which such building the public may contact the vehicle dealer or his vehicle salesman, at all reasonable times and at which place of business shall be kept and maintained the books, records and files necessary to conduct the business at such place. The established place of business shall display an exterior sign permanently affixed to the land or building, with letters clearly visible to the major avenue of traffic. A dealer operating a listing service who does not physically maintain any vehicles for display, or a vehicle dealer who merely rents or leases or licenses for use any space on a temporary basis not to exceed two days to private persons to sell their own vehicles, need not operate in a commercial building nor have such a display area.

((~~(10)~~)) (12) "Subagency" means any place of business of a vehicle dealer within the same county as the principal place of business of the firm which is physically and geographically separated from the principal place of business of the firm or any place of business of a vehicle dealer within the same county as the principal place of business of the firm under which he does business under a name other than the principal name of the firm, or both.

NEW SECTION. Sec. 2. A new section is added to chapter 46.70 RCW to read as follows:

It is a deceptive act or practice for any vehicle dealer, when that dealer sells or offers for sale a used vehicle, to:

(1) Misrepresent the mechanical condition of a used vehicle;

(2) Fail to disclose, prior to sale, any material defect in the mechanical condition of the used vehicle known to the dealer;

(3) Represent that a used vehicle, or any component thereof, is free from material defects in mechanical condition at the time of sale unless the dealer has a reasonable basis for such representation at the time it is made;

(4) Fail to make available, prior to sale, the terms of any written warranty offered in connection with the sale of a used vehicle;

(5) Misrepresent the terms of any warranty offered in connection with the sale of a used vehicle;

(6) Represent that a used vehicle is sold with a warranty when the vehicle is sold without any warranty; or

(7) Fail to disclose, prior to sale, that a used vehicle is sold without any warranty.

NEW SECTION. Sec. 3. A new section is added to chapter 46.70 RCW to read as follows:

Before the sale of a used vehicle, the dealer shall provide written notification to the purchaser of the exact nature of the warranty protection which the dealer is providing, and the purchaser shall sign the notice indicating awareness of the provisions. The notification shall include: (1) A specific listing of systems covered such as engine, transmission, differential; and a specific listing of systems not covered; (2) the duration of the warranty in length of time or number of miles driven; and (3) the percentage of repair cost to be borne by the dealer. If the warranty does not cover parts and labor equally, the percentage of costs to be borne by the dealer shall be disclosed for each.

NEW SECTION. Sec. 4. A new section is added to chapter 46.70 RCW to read as follows:

(1) Every used vehicle sold by a vehicle dealer shall be inspected by a motor vehicle repairperson before sale. The inspection shall include: (a) Frame and body; (b) engine; (c) transmission and drive shaft; (d) differential; (e) cooling system; (f) electrical system; (g) fuel system; (h) exhaust system; (i) brake system; (j) steering system; (k) suspension system; and (l) tires and wheels.

(2) The vehicle dealer must disclose the inspection findings in writing to the purchaser before sale.

(3) For the purposes of this section, "motor vehicle repairperson" means a person who engages in the business of motor vehicle repairing or diagnosing malfunctions of motor vehicles for compensation.

NEW SECTION. Sec. 5. A new section is added to chapter 46.70 RCW to read as follows:

A vehicle dealer and purchaser may negotiate over warranty coverage after the written disclosures required by sections 3 and 4 of this act, but the warranty shall be in writing and made a part of the contract of sale.

NEW SECTION. Sec. 6. The provisions of this act are cumulative and nonexclusive and shall not affect any other remedy.