Pennsylvania Code › Title 37 - LAW › Part V - Bureau of Consumer Protection › Chapter 301 - AUTOMOTIVE INDUSTRY TRADE PRACTICES › Section 301.4 - General provisions-motor vehicle dealer

Current through Register Vol. 54, No. 28, July 13, 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
.
(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.