Senate Bill 0938c1
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Florida Senate - 2000 CS for SB 938
By the Committee on Transportation and Senator Bronson
306-1823A-00
1 A bill to be entitled
2 An act relating to motor vehicle damage
3 disclosure; creating pt. VI of ch. 501, F.S.;
4 consisting of s. 501.98, F.S.; providing
5 definitions; prescribing the duty of motor
6 vehicle manufacturers and dealers to disclose
7 and repair certain damage to motor vehicles;
8 apportioning liability for certain damage and
9 repairs; prescribing duties of dealers with
10 respect to cooperation with manufacturers;
11 providing remedies for purchasers of damaged
12 motor vehicles, including injunctive relief and
13 attorney's fees; amending s. 320.27, F.S.;
14 revising provisions relating to denial,
15 suspension, or revocation of a motor vehicle
16 dealer's license; providing penalties;
17 providing an effective date.
18
19 Be It Enacted by the Legislature of the State of Florida:
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21 Section 1. Part VI of chapter 501, Florida Statutes,
22 consisting of section 501.98, is created to read:
23 PART VI
24 NEW MOTOR VEHICLE DAMAGE DISCLOSURE
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26 501.98 New motor vehicle damage; disclosure;
27 repairs.--
28 (1) DEFINITIONS.--As used in this section, the term:
29 (a) "Dealer" means a motor vehicle dealer as defined
30 in s. 320.27, but does not include a motor vehicle auction as
31 defined in s. 320.27(1)(c)4.
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CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2000 CS for SB 938
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1 (b) "Manufacturer" means a manufacturer as defined in
2 s. 320.60.
3 (c) "Manufacturer's suggested retail price" means the
4 retail price of a new motor vehicle suggested by the
5 manufacturer set forth in 15 U.S.C. s. 1232, including the
6 retail delivery price suggested by the manufacturer for each
7 accessory or item of optional equipment physically attached to
8 the new motor vehicle at the time it is delivered to the motor
9 vehicle dealer.
10 (d) "Motor vehicle" means any new automobile or truck
11 the equitable or legal title to which has never been
12 transferred by a manufacturer, distributor, importer, or
13 dealer to an ultimate purchaser. The term does not include
14 motor vehicles with a gross vehicle weight of 14,001 pounds or
15 more.
16 (e) "Replacement item" means a tire, a bumper, bumper
17 fascia, glass, in-dashboard equipment, seats or upholstery
18 covers or trim, or any readily detachable component that is
19 not structural in nature, including, but not limited to,
20 exterior illumination units, grilles, sunroofs, external
21 mirrors, and external body cladding.
22 (f) "Threshold amount" means 3 percent of the
23 manufacturer's suggested retail price of a motor vehicle or
24 $650, whichever is less, excluding the replacement items in
25 paragraph (e) which are original vehicle manufacturer
26 equipment.
27 (2) RESPONSIBILITIES OF MANUFACTURER.--
28 (a) A manufacturer shall disclose, in writing, to a
29 dealer at the time of delivery of a motor vehicle, damage and
30 repair to the motor vehicle which is actually known to the
31 manufacturer and which occurred at any time after the
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Florida Senate - 2000 CS for SB 938
306-1823A-00
1 manufacturing process was completed, but before delivery of
2 the vehicle to the dealer, if the cost of repairing the damage
3 exceeds the threshold amount.
4 (b)1. Notwithstanding the terms of any franchise
5 agreement, the manufacturer is liable for any and all damage
6 to a motor vehicle which is actually known to the manufacturer
7 and which occurred at any time after the manufacturing process
8 was complete, but before delivery to the dealer.
9 2. Whenever a new motor vehicle is damaged in transit
10 or otherwise damaged before delivery to the dealer, the dealer
11 shall:
12 a. Notify the manufacturer, or the manufacturer's
13 transportation agent, in writing, of the damage within 3
14 business days after the date the vehicle is delivered to the
15 dealer; and
16 b. Request from the manufacturer, or the
17 manufacturer's transportation agent, in writing, authorization
18 to replace the components, parts, and accessories damaged or
19 to otherwise repair the damage.
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21 Nothing in this section relieves the dealer's obligation to
22 cooperate with the manufacturer as necessary on filing any
23 transportation damage claim with the manufacturer's
24 transportation agent.
25 (c) It is unlawful for any manufacturer to fail to
26 compensate, or provide compensation by the manufacturer's
27 transportation agent to, any dealer for repairs effected by
28 the dealer to a damaged motor vehicle or to a motor vehicle
29 damaged in transit or otherwise damaged before delivery to the
30 dealer, provided that written authorization is given to the
31 dealer by the manufacturer.
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CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2000 CS for SB 938
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1 (d) If the manufacturer, or the manufacturer's
2 transportation agent, refuses or fails to authorize repair of
3 any damage within 10 business days after receiving
4 notification given under this section, ownership of the motor
5 vehicle shall revert to the manufacturer, and the dealer shall
6 have no obligation, financial or otherwise, with respect to
7 the motor vehicle. If the damage exceeds the threshold amount
8 in (1)(f), the manufacturer may elect to repurchase the motor
9 vehicle from the dealer or provide reasonable and adequate
10 compensation to the dealer to assist in selling the vehicle.
11 If the manufacturer repurchases the motor vehicle, the dealer
12 shall have no obligation, financial or otherwise, with respect
13 to the motor vehicle.
14 (3) RESPONSIBILITIES OF DEALER.--A dealer shall
15 disclose, in writing, to the motor vehicle purchaser,
16 including a purchaser for resale, damage and repair to the
17 motor vehicle which is actually known to the dealer, before
18 entering into a sales contract, if the cost of repairing the
19 damage exceeds the threshold amount. For purposes of this
20 subsection, the threshold amount shall be calculated at the
21 rate of the dealer's authorized warranty rate for labor and
22 parts. The disclosure must be acknowledged by the purchaser
23 in writing on a form presented by the dealer. The dealer
24 shall retain a copy of the acknowledgement for his or her
25 records.
26 (4) CONSUMER REMEDIES.--
27 (a) If disclosure is required under this section and
28 the motor vehicle dealer fails to make the required
29 disclosure, a purchaser either may seek recovery of damages
30 under subparagraph l. or, if within 30 days from the date of
31 purchase, may rescind the sales contract under subparagraph 2.
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Florida Senate - 2000 CS for SB 938
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1 1. In an action to recover damages under this
2 paragraph, the court shall award a purchaser who prevails in
3 such action the amount of any pecuniary loss, litigation
4 costs, and reasonable attorney's fees. The action must be
5 commenced within 1 year after the discovery of the damage or
6 within 1 year after the time discovery reasonably should have
7 been made by the purchaser. A motor vehicle purchaser seeking
8 recovery of damages under this paragraph is not precluded from
9 pursuing remedies available under any other law, including
10 remedies available under chapter 681; or
11 2. To rescind the sales contract, the buyer must
12 return the motor vehicle to the dealer within 30 days from the
13 date of purchase with an accompanying written notice of the
14 grounds for rescission. The dealer shall accept the motor
15 vehicle and refund any payments made to the dealer or
16 financial institution in connection with the transaction, less
17 a reasonable allowance for the purchaser's use of the motor
18 vehicle as defined in s. 681.102(20).
19 (b) If disclosure is not required under this section,
20 a purchaser may not bring a civil action against the dealer or
21 manufacturer or rescind a sales contract based solely upon the
22 fact that the new motor vehicle was damaged and repaired
23 before completion of the sale.
24 Section 2. Paragraph (n) of subsection (9) of section
25 320.27, Florida Statutes, is amended to read:
26 320.27 Motor vehicle dealers.--
27 (9) DENIAL, SUSPENSION, OR REVOCATION.--The department
28 may deny, suspend, or revoke any license issued hereunder or
29 under the provisions of s. 320.77 or s. 320.771, upon proof
30 that a licensee has failed to comply with any of the following
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Florida Senate - 2000 CS for SB 938
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1 provisions with sufficient frequency so as to establish a
2 pattern of wrongdoing on the part of the licensee:
3 (n) Failure to disclose damage to a new motor vehicle
4 as defined in s. 320.60(10) as required under s. 501.98 of
5 which the dealer had actual knowledge if the dealer's actual
6 cost of repair, excluding tires, bumpers, and glass, exceeds 3
7 percent of the manufacturer's suggested retail price;
8 provided, however, if only the application of exterior paint
9 is involved, disclosure shall be made if such touch-up paint
10 application exceeds $100.
11 Section 3. This act shall take effect July 1, 2000.
12
13 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
14 SB 938
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16 The CS excludes auctions from the definition of the word
"dealer."
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The CS includes seats, upholstery and covers or trim in the
18 definition of "replacement items."
19 The CS requires the dealer to notify the manufacturer, in
writing, of any damage within three days.
20
The CS provides the threshold amount for purposes of dealer
21 disclosure is calculated at the rate of the dealer's
authorized warranty rate for labor and parts. The disclosure
22 must be in writing and the buyer must acknowledge receipt of
the disclosure in writing, and the dealer must retain a copy
23 of the acknowledgment for his or her records.
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