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ILLINOIS AUTOMOBILE DEALERS ASSOCIATIONFACT SHEETHOUSE BILL 1560, AS AMENDED BY SENATE AMENDMENTS 1 & 2SENATOR LINKWE SUPPORTBACKGROUNDPublic Act 99-768 amended the Consumer Fraud and Deceptive Business Practices Act to create a limited implied warranty of merchantability for power train components for used vehicles, other than antique vehicles, vehicles with over 150,000 miles, or vehicles that have been branded either as flood or rebuilt vehicles beginning July 1, 2017. Public Act 99-768 requires a dealer to repair a covered power train component that fails within 15 days or 500 miles after the sale and requires the dealer to include a description of the statutory warranty in the sales agreement. House Bill 1560 makes clarifications and makes several clean-up changes to reduce administrative burdens.ANALYSISHouse Bill 1560 provides for the following changes:Warranty disclosure.? Clarifies that the required disclosure can appear either in the body of the purchase agreement or on a separate disclosure form.??Dealer warranty.? Eliminates a duplicative regulatory burden for dealers by providing that a dealer who offers a used vehicle warranty that provides equal or greater coverage than the statute requires does not have to include the limited implied power train warranty of merchantability disclosure with the purchase agreement. Encourages dealers to offer greater warranties and simplifies compliance with the Federal Trade Commission’s Used Car Buyers Guide requirements. Heavy duty trucks.?? Exempts vehicles with a Gross Vehicle Weight Rating of 8,000 pounds or more from the statutory power train warranty requirement. These vehicles are normally purchased by business customers, who were not the intended customer population that Public Act 99-768 sought to protect. This change will prevent prices in the used heavy duty truck market from becoming distorted. ?Clarification of warranty.? Clarifies that the coverage provided by the limited implied warranty of merchantability for power train components is consistent with the requirements of Section 2-314 of the Uniform Commercial Code. ?COMMENTSThe Illinois Automobile Dealers Association, the Chicago Automobile Trade Association, and the Peoria Metro New Car Dealers Association support House Bill 1560. For further information, please contact Joe McMahon, Larry Doll, or Pete Sander at (217) 753-0220. ................
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