Motor Vehicle Manufacturer's Warranty Act, 2003 Sampson, Rob — Bill 40 (37th Parliament, 4th Session)

Bill 40, 37-4

Ontario — Bills

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Bill 40, Motor Vehicle Manufacturer's Warranty Act, 2003

Sampson, Rob

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[37] Bill 40 Original (PDF)

Bill 40 2003

An Act respecting

warranties offered by

manufacturers

of motor vehicles

Her Majesty, by and with the advice and consent of the Legislative

Assembly of the Province of Ontario, enacts as follows:

Definitions

1. In this Act,

"consumer" means a natural person, but does not include a natural person,

partnership or association of individuals acting in the course of carrying on

a business, trade or profession; ("consommateur")

"manufacturer's warranty" means an undertaking under which the

manufacturer of a motor vehicle that a consumer has purchased makes

representations about the nature of the material, workmanship or performance

of the motor vehicle and undertakes to repair, replace or take other remedial

action with respect to the motor vehicle if it does not meet the standards

set out in the undertaking during the term of the undertaking; ("garantie du

fabricant")

"motor vehicle" means an automobile, truck or other vehicle propelled or

driven otherwise than by muscular power, including a motorcycle, but does not

include a motorized snow vehicle or a farm tractor or other self-propelled

machinery primarily intended for farming or construction purposes;

("véhicule automobile")

"term", in relation to a manufacturer's warranty, means the period of time

during which the undertaking and all renewals and extensions of the

undertaking are in force. ("durée")

Administration of Act

2. The Minister of Consumer and Business

Services is responsible for the administration of this Act.

Manufacturer's warranty

(1) Despite any agreement to the

contrary, every manufacturer's warranty, including a warranty described in

clause (4) (b), with respect to a motor vehicle that a consumer enters into

an agreement to purchase on or after the day this Act comes into force,

whether or not the consumer pays for the vehicle in full at the time of

entering into the agreement, shall be deemed to include subsections (2) to

(4).

Consumer's remedy

(2) If all of the conditions set out in subsection (3) are met,

the manufacturer shall, at the option of the consumer,

(

a) repurchase the motor vehicle from the consumer at the price that the

consumer paid for it, less a reasonable allowance for depreciation in the

value of the vehicle from the time of purchase to the time that the consumer

first gave notice to the manufacturer under paragraph 3 of subsection (3) of

the deficiency; or

(

b) at no cost to the consumer, provide the consumer with a replacement

for the motor vehicle and transfer to the consumer title to the replacement,

free and clear of all liens and encumbrances.

Conditions for remedy

(3) The conditions mentioned in subsection (2) are the

following:

1. During the term of the warranty, the motor vehicle does not meet the

standards set out in the warranty.

2. The deficiency mentioned in paragraph 1 constitutes a substantial

impairment to the use, value or safety of the motor vehicle or would cost

more than $1,000 to rectify.

3. The consumer gives notice in writing to the manufacturer of the

deficiency reasonably promptly in the circumstances.

4. The manufacturer, whether or not acting through an agent, has

previously returned the motor vehicle three times to the consumer, after

having attempted to remedy the deficiency.

Replacement motor vehicle

(4) The replacement motor vehicle mentioned in clause (2)

(b),

(

a) must be as identical as possible in the circumstances to the original

motor vehicle, except that it must meet the standards set out in the

manufacturer's warranty for the original motor vehicle; and

(

b) is subject to a manufacturer's warranty for an unexpired term that is

identical to the term of the manufacturer's warranty for the original motor

vehicle.

Offence

4. A manufacturer that contravenes clause 3

(2) (

a) or (

b) is guilty of an offence and, on conviction, is liable to a

fine of not more than $25,000.

Commencement

5. This Act comes into force on the day it receives

Royal Assent.

Short title

6. The

short title of this Act is the Motor Vehicle

Manufacturer's Warranty Act, 2003 .

EXPLANATORY NOTE

The Bill provides remedies to a

consumer who enters into an agreement to purchase a motor vehicle on or after

the Bill comes into force if a substantial deficiency arises in the motor

vehicle that is covered by a manufacturer's warranty and the manufacturer

has, on three previous occasions, attempted to remedy the deficiency. A

deficiency is considered substantial only if it constitutes a substantial

impairment to the use, value or safety of the motor vehicle.

The consumer has the option to

require the manufacturer to repurchase the motor vehicle or, at no cost to

the consumer, to provide the consumer with a replacement for the motor

vehicle and to transfer to the consumer clear title to the replacement. If

the consumer requires the manufacturer to repurchase the motor vehicle, the

repurchase price is the price that the consumer paid for it, less a

reasonable allowance for depreciation in the value of the vehicle from the

time of purchase to the time that the consumer first gave notice to the

manufacturer of the deficiency.

Date Bill stage Activity Committee

May 29, 2003

Ordered referred to Standing Committee

Standing Committee on Finance and Economic Affairs

May 29, 2003

Second Reading

Carried

May 21, 2003

First Reading

Carried

Debates and Progress

First Reading

May

21, 2003

Second Reading

Debate

May

29, 2003

Mr Sampson, Mr. Phillips, Mr. Miller, Mr. Bisson, Mr. Bradley,

Mr. Kormos

May

29, 2003

Declared carried. Referred to the Standing Committee on Finance

and Economic Affairs.

Committee

Standing Committee on Finance and Economic Affairs

Third Reading

Royal Assent :

Coming into force :Royal Assent.

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Document details

Collection	Ontario — Bills
Citation	Bill 40, 37-4
Type	bill
Volume / chapter	p37 s4 bill 40 html
Language	en
Format	html
Source	PROVINCIAL
Identifier	c91437e7a6e65c91e1d8582970b7c914da541b68

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