Current through Register Vol. 54, No. 44, November 2, 2024
(a) With regard to a motor vehicle dealer,
the following will be considered unfair methods of competition and unfair or
deceptive acts or practices:
(1) Failing to
prepare a written contract for the sale of a motor vehicle and failing to
provide the purchaser with a copy of the same at the time the purchaser signs
the contract.
(2) Using a printed
or written contract form agreement, receipt or invoice in connection with the
sale of a motor vehicle which is not clearly identified and which does not
contain the following:
(i) The name and
address of the dealer and purchaser.
(ii) The make, model, year and vehicle
identification number of the vehicle purchased and the trade-in vehicle, if
any.
(iii) A description of the
purchased vehicle as either "new" or "used" and, if used, a brief description
of its prior usage such as "executive," "demonstrator," "reconstructed," or any
prior usage which is required to be noted on a Pennsylvania Certificate of
Title or which appears on the title of any state through which the dealer has
acquired ownership.
(iv) The total
contract price, including an itemized list of charges for repairs, services,
dealer-installed optional accessories and documentary preparation which are not
included in the purchase price.
(v)
A list of conditions precedent to the dealer's acceptance of the contract set
forth in a clear and conspicuous manner as well as a statement that the
purchaser may cancel the contract at any time until the conditions are met; for
example, if the contract must be signed by an authorized dealer representative,
the document shall state, in a form, substantially as follows:
This contract is not binding upon either the dealer or the
purchaser until signed by an authorized dealer representative. YOU, THE BUYER,
MAY CANCEL THIS CONTRACT AND RECEIVE A FULL REFUND ANY TIME BEFORE RECEIPT OF A
COPY OF THIS CONTRACT SIGNED BY AN AUTHORIZED DEALER REPRESENTATIVE BY GIVING
WRITTEN NOTICE OF CANCELLATION TO DEALER.
(vi) A brief statement of an express
warranty, such as "Manufacturer's limited warranty" or "Our own 90-day full
warranty," and the place where a full copy of the written warranty may be
obtained.
(3) Failing to
provide a purchaser, at no additional charge, an exact copy of each document
required by law to be provided including, but not limited to the agreement of
sale, installment sales contract, odometer statement, and warranty and other
documents in which legal obligations are imposed on the buyer. Copies of other
documents signed by the purchaser and requested by the purchaser shall be made
available for a reasonable fee.
(4)
Using in a motor vehicle purchase contract a liquidated damage clause or
similar clause which requires the forfeiture of a purchaser's deposit or
security when the purchaser cancels or breaches the contract unless: the clause
contains a specific dollar amount or item to be retained by the dealer; the
clause is clear and conspicuous; the purchaser assents to the clause by
initialing the same; and the clause is not otherwise unlawful.
(5) Representing that a motor vehicle offered
for sale can or will be delivered on or about a certain date or within a
specified period when the dealer knows or should know that the vehicle cannot
be delivered by or within the time specified or when the dealer has no
information on which to base the representation.
(6) Failing to refund the full amount of a
purchaser deposit promptly when:
(i) The
purchaser cancels the contract prior to its acceptance by an authorized dealer
representative.
(ii) The contract
is conditioned upon the purchaser obtaining financing of his choice and the
purchaser cannot obtain the financing after exerting reasonable efforts to do
so.
(iii) The dealer does not
accept the contract.
(iv) The
dealer fails to deliver to the purchaser a motor vehicle which conforms to the
terms of the contract.
(v) The
purchaser cancels the contract because the dealer fails to deliver the motor
vehicle within the time specified in the contract or, if no time period is
specified, within 8 weeks after the date of the contract unless the delay is
caused by acts beyond the control of the dealer and the manufacturer.
(7) Increasing the contract price
of a motor vehicle after the contract has been accepted by the dealer or the
authorized dealer representative unless the increase is due to the passage of a
law or regulation of the United States or the Commonwealth which: requires the
addition of new equipment to certain vehicles; changes transportation costs or
existing tax rates; or, in the case of foreign-made vehicles, is due to a
revaluation of the United States dollar vis-a-vis The currency
of the country of manufacture.
(8)
Reappraising the value of a trade-in vehicle unless the dealer can establish
that the vehicle has suffered damage or serious mechanical deterioration since
the date of the valuation but prior to its delivery to the dealer, or unless
parts or accessories, or both, including tires, have been removed or replaced
with parts or accessories of inferior quality.
(9) Where no express warranty is given,
attempting to exclude the implied warranties of merchantability and fitness for
a particular purpose in the sale of a motor vehicle purchased primarily for
personal, family or household purposes unless the following notice in at least
20-point bold type is prominently affixed to a window in the motor vehicle so
as to be easily read from the outside and is brought to the attention of the
prospective purchaser by the seller:
This vehicle is sold without any
warranty. The purchaser will bear the entire expense
of repairing or correcting any defects that presently exist and/or
may occur in the motor vehicle unless the salesperson promises in
writing to correct such defect or promises in writing
that certain defects do not exist.
This paragraph prohibits the use of the term "AS IS" unless
the sales contract, receipt, agreement or memorandum contains the following
information in a clear, concise and conspicuous manner on the face of the
document; the notice shall be in addition to the window statement required by
this paragraph and may not contradict an oral or written statement, claim or
representation made directly or by implication with regard to the quality,
performance, reliability or lack of mechanical defects of a motor vehicle which
is offered for sale:
AS IS
THIS MOTOR VEHICLE IS SOLD AS IS WITHOUT ANY
WARRANTY EITHER EXPRESSED OR IMPLIED. THE PURCHASER WILL BEAR THE
ENTIRE EXPENSE OF REPAIRING OR CORRECTING ANY DEFECTS THAT
PRESENTLY EXIST OR THAT MAY OCCUR IN THE VEHICLE.
(9.1) In an instance where a motor vehicle
is not roadworthy at the time the motor vehicle is offered for sale, using the
term "AS-IS" as set forth in this section does not satisfy the written
disclosure requirement in §
301.2(5) (relating to advertising and sales
presentation requirements). The written contract, required under subsection
(a)(1) for the sale of a motor vehicle, must instead include, in a clear and
conspicuous manner on the face of the document, information that the motor
vehicle is sold "AS-IS" and a list of the conditions, as set forth in §
301.2(5) of this chapter, present in the motor vehicle.
(10) Failing to forward to the proper
Commonwealth agency amounts and forms tendered by a purchaser, such as sales
tax and transfer and registration fees, within the time prescribed by
law.
(b) If the sales
presentation and agreement of sale has been effected in a language other than
English, the written information, notice and disclosures required by subsection
(a) shall be given in the principal language in which the sale was transacted
as well as English.
