HF 3627

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to commerce; expanding the motor vehicle lemon law to protect
very small businesses; amending Minnesota Statutes 2004, section 325F.665,
subdivision 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2004, section 325F.665, subdivision 1, is amended to
read:

Subdivision 1.

Definitions.

For the purposes of this section, the following terms
have the meanings given them:

(a) "consumer" means the purchaser or lessee, other than for purposes of resale or
sublease, of a new motor vehicle used for personal, family, deleted text begin or deleted text end household new text begin , or small business new text end
purposes at least 40 percent of the time, new text begin or new text end a person to whom the new motor vehicle is
transferred for the same purposes during the duration of an express warranty applicable to
the motor vehicle;

(b) "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 ten new motor
vehicles;

(c) "manufacturer's express warranty" and "warranty" mean the written warranty of
the manufacturer of a new motor vehicle of its condition and fitness for use, including any
terms or conditions precedent to the enforcement of obligations under that warranty;

(d) "lease" means a contract in the form of a lease or bailment for the use of personal
property by a deleted text begin natural person deleted text end new text begin consumer new text end for a period of time exceeding four months, used
for personal, family, deleted text begin or deleted text end household new text begin , or small business new text end purposes at least 40 percent of the
time, whether or not the lessee has the option to purchase or otherwise become the owner
of the property at the expiration of the lease;

(e) "motor vehicle" means (1) a passenger automobile as defined in section 168.011,
subdivision 7, including pickup trucks and vans, and (2) the self-propelled motor vehicle
chassis or van portion of recreational equipment as defined in section 168.011, subdivision
25, which is sold or leased to a consumer in this state;

(f) "informal dispute settlement mechanism" means an arbitration process or
procedure by which the manufacturer attempts to resolve disputes with consumers
regarding motor vehicle nonconformities and repairs that arise during the vehicle's
warranty period;

(g) "motor vehicle lessor" means a person who holds title to a motor vehicle leased
to a lessee under a written lease agreement or who holds the lessor's rights under such
agreement; deleted text begin and
deleted text end

(h) "early termination costs" means expenses and obligations incurred by a motor
vehicle lessor as a result of an early termination of a written lease agreement and
surrender of a motor vehicle to a manufacturer under subdivision 4, including penalties for
prepayment of finance arrangements deleted text begin . deleted text end new text begin ; and
new text end

new text begin (i) "small business" means an individual or business entity that uses five or fewer
purchased or leased motor vehicles for business purposes.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2006, and applies to
purchases or leases of motor vehicles entered into on or after that date.
new text end