AB 2837, as introduced, Jones. Motor vehicle sales: warranty disclosures.
The existing Song-Beverly Consumer Warranty Act and the existing federal Magnuson-Moss Warranty-Federal Trade Commission Improvement Act provide consumer warranty protection to buyers of various products. Existing law requires that every manufacturer, distributor, or retailer which makes express warranties with respect to consumer goods fully set forth those warranties in simple and readily understood language, as specified.
This bill would require a motor vehicle dealer, as defined, to deliver to a buyer at the time of sale a specifically worded written statement relating to warranties, including that federal law prohibits conditioning a warranty on the buyer’s use of a replacement product or repair services identified by brand or name, unless the article or service is provided without charge to the buyer or the dealer has received a waiver from the Federal Trade Commission.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 1793.27 is added to the Civil Code, to
2read:
(a) A motor vehicle dealer, as defined in Section 285
4of the Vehicle Code, shall deliver to the buyer of a motor vehicle,
5as defined in Section 791, at the time of sale a statement in writing,
6printed in no less than 10-point boldface type, as follows:
8“The Magnuson-Moss Warranty Act, 15 USC 2301 et seq.,
9prohibits warrantors from conditioning warranties on the
10consumer’s use of a replacement product or repair services
11identified by brand or name, unless the article or service is provided
12without charge to the consumer or the warrantor has received a
13waiver from the Federal Trade Commission. It is unlawful for a
14manufacturer or dealer to void your warranty or deny coverage
15under the warranty simply
because you used an aftermarket part
16or recycled part. If it turns out that an aftermarket part or recycled
17part was itself defective or was not installed correctly and it causes
18damage to another part that is covered under the warranty, the
19manufacturer or dealer has the right to deny coverage for that part
20and charge you for any repairs. The Federal Trade Commission
21requires the manufacturer or dealer to show that the aftermarket
22part or recycled part caused the need for repairs before denying
23warranty coverage.”
25(b) For purposes of this section:
26(1) “Aftermarket part” means a part that was made by a company
27other than the vehicle manufacturer or the original equipment
28manufacturer.
29(2) “Recycled part” means a part that was made for and installed
30in a new vehicle by the
manufacturer or the original equipment
31manufacturer and later removed from the vehicle and made
32available for resale or reuse.
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