SENATE, No. 2741

STATE OF NEW JERSEY

214th LEGISLATURE

 

INTRODUCED FEBRUARY 22, 2011

 


 

Sponsored by:

Senator  JEFF VAN DREW

District 1 (Cape May, Atlantic and Cumberland)

 

 

 

 

SYNOPSIS

     Extends protections of the new vehicle “lemon law” to new motor vehicle farm equipment purchased or leased in New Jersey.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act concerning new motor vehicle warranties and amending P.L.1988, c.123.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    Section 2 of P.L.1988, c.123 (C.56:12-30) is amended to read as follows:

     2.    As used in this act:

     "Co-manufacturer" means, solely with respect to an authorized emergency vehicle as defined in R.S.39:1-1, any person that fabricates the authorized emergency vehicle utilizing a component or components of a new motor vehicle made by a manufacturer, other than modifying an existing standard model of a vehicle manufactured by a manufacturer, which component or components are obtained by the co-manufacturer from the manufacturer to fabricate the vehicle for use as an authorized emergency vehicle prior to an initial retail sale or lease of the emergency vehicle.

     "Consumer" means a buyer or lessee, other than for purposes of resale or sublease, of a motor vehicle; a person to whom a motor vehicle is transferred during the duration of a warranty applicable to the motor vehicle; or any other person entitled by the terms of the warranty to enforce the obligations of the warranty.

     "Dealer" means a person who is actively engaged in the business of buying, selling or exchanging motor vehicles at retail and who has an established place of business.

     "Director" means the Director of the Division of Consumer Affairs in the Department of Law and Public Safety, or his designee.

     "Division" means the Division of Consumer Affairs in the Department of Law and Public Safety.

     "Informal dispute settlement procedure" means an arbitration process or procedure by which the manufacturer, or, in the case of an authorized emergency vehicle, the manufacturer, co-manufacturer, or post-manufacturing modifier, attempts to resolve disputes with consumers regarding motor vehicle nonconformities and repairs that arise during the vehicle's warranty period.

     "Lease agreement" means a contract or other written agreement in the form of a lease for the use of a motor vehicle by a person for a period of time exceeding 60 days, whether or not the lessee has the option to purchase or otherwise become the owner of the motor vehicle at the expiration of the lease.

     "Lessee" means a person who leases a motor vehicle pursuant to a lease agreement.

     "Lessor" means a person who holds title to a motor vehicle leased to a lessee under a lease agreement or who holds the lessor's rights under such an agreement.

     "Lien" means a security interest in a motor vehicle.

     "Lienholder" means a person with a security interest in a motor vehicle pursuant to a lien.

     "Manufacturer" means a person engaged in the business of manufacturing, assembling or distributing motor vehicles, who will, under normal business conditions during the year, manufacture, assemble or distribute to dealers at least 10 new motor vehicles.

     "Motor vehicle" means a passenger automobile, farm tractor, authorized emergency vehicle, or motorcycle as defined in R.S.39:1-1 which is purchased or leased in the State of New Jersey or which is registered by the New Jersey Motor Vehicle Commission, except the living facilities of motor homes.

     "Nonconformity" means a defect or condition which substantially impairs the use, value or safety of a motor vehicle.

     "Post-manufacturing modifier" means, solely with respect to an authorized emergency vehicle as defined in R.S.39:1-1, any person who modifies the configuration of an existing standard model of a motor vehicle purchased from a manufacturer to adapt the vehicle for use as an authorized emergency vehicle prior to an initial retail sale or lease of the vehicle.

     "Reasonable allowance for vehicle use" means the mileage at the time the consumer first presents the motor vehicle to the dealer, distributor, manufacturer, co-manufacturer, or post-manufacturing modifier for correction of a nonconformity times the purchase price, or the lease price if applicable, of the vehicle, divided by one hundred thousand miles.

     "Warranty" means any warranty, whether express or implied of the manufacturer of a new motor vehicle, or, in the case of a new motor vehicle that is an authorized emergency vehicle, of the manufacturer, co-manufacturer or post-manufacturing modifier, of the vehicle's condition and fitness for use, including any terms or conditions precedent to the enforcement of obligations under the warranty.

(cf: P.L.2009, c.324, s.2)

 

     2.    This act shall take effect on the 180th day following enactment.

 

 

STATEMENT

 

     This bill amends the new vehicle “lemon law,” P.L.1988, c.123 (C.56:12-29 et seq.), to extend the protections of the new vehicle “lemon law” to new motor vehicle farm equipment purchased or leased in New Jersey.  More specifically, the bill includes farm tractors under the types of motor vehicles covered under the terms of the “lemon law,” along with the existing categories of passenger automobiles, authorized emergency vehicles and motorcycles.  The bill references the definition of “farm tractor” used in R.S.39:1-1, which definition is “every motor vehicle designed and used primarily as a farm implement for drawing plows, mowing machines, and other implements of husbandry.”