HB 265 -- Used Car Warranties

Sponsor:  Johnson (47)

This bill requires motor vehicle dealers to provide warranties on
used cars.  The bill makes it unlawful for a dealer to:

(1)  Misrepresent the mechanical condition, material defect, or
lack thereof, of a used motor vehicle;

(2)   Fail to disclose the existence and terms of any written
warranty, service contract, or repair insurance provided by the
dealer or other party;

(3)  Represent a vehicle as having a warranty when one is not
available; and

(4)  Sell a motor vehicle which falls under certain criteria
provided by the bill without a warranty.

Buyers and dealers are allowed to waive warranties as a result of
price negotiation.  If the dealer fails to provide a written
waiver to the buyer, a warranty as a matter of law will be deemed
in effect.  Dealers are not required to provide warranties on
vehicles which sell for less than $3,000, are seven years old or
older, have been declared a total loss by an insurance company,
or have more than 100,000 miles.

The Director of the Department of Revenue is required to
implement a consumer awareness program to advise consumers of the
requirements and protections provided by the bill.  The director
may establish a fee, to be paid by the consumer, to cover the
costs for the administration and enforcement of the provisions of
the bill.

The bill also contains provisions regarding legal action brought
by consumers relating to court costs, attorney fees, and bad
faith claims.

Missouri House of Representatives
93rd General Assembly, 1st Regular Session
Last Updated August 25, 2005 at 1:18 pm