Assembly Bill No. 178

Assembly Bill No. 178-Assemblymen Buckley, Ohrenschall, Anderson, Perkins, Close, Arberry, Giunchigliani, Amodei, Segerblom, Mortenson, Evans, Krenzer, Williams, Manendo, Koivisto, Chowning, Collins, Price, Nolan, Carpenter, Hickey, Neighbors, Marvel, Parks, Cegavske, Sandoval and Hettrick

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AN ACT relating to motor vehicles; requiring a used vehicle dealer to conduct certain inspections on certain vehicles that he sells to a retail customer; requiring a used vehicle dealer to offer to sell certain warranties for certain used vehicles that he sells to retail customers or to disclose certain defects in those vehicles; authorizing a retail customer of a used vehicle to file a complaint with the department of motor vehicles and public safety regarding a violation of those provisions; providing penalties; and providing other matters properly relating thereto.

[Approved July 16, 1997]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 482 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 10, inclusive, of this act.
Sec. 2. For the purposes of this chapter, if an odometer that is connected to a motor vehicle is not capable of registering 100,000 miles or more, the odometer shall be deemed to register the actual mileage the vehicle has traveled while in operation.
Sec. 3. As used in sections 3 to 10, inclusive, of this act, unless the context otherwise requires, "drivetrain" means those components and systems within a motor vehicle that transfer power from the engine of the vehicle to the wheels of the vehicle, including, without limitation, a transmission, driveshaft, torque converter, differential, universal joint and constant velocity joint.
Sec. 4. Before a used vehicle dealer may sell to a retail customer a used vehicle the odometer of which registers 75,000 miles or more, the used vehicle dealer must conduct a reasonably thorough inspection of the soundness and safety of the vehicle's engine and drivetrain and disclose in writing any defects in the engine or drivetrain known to him or which he reasonably should have known after he conducts the inspection.
Sec. 5. 1. A used vehicle dealer who sells to a retail customer a used vehicle the odometer of which registers 75,000 miles or more shall provide to that retail customer an express written warranty which complies with the requirements set forth in subsection 2 and is valid for the period set forth in the schedule of warranties created pursuant to section 6 of this act, if a used vehicle dealer is the subject of more than three substantiated complaints filed against him with the department of motor vehicles and public safety during a 12-month period.
2. An express written warranty required pursuant to subsection 1 must contain a statement that, in the event the operation of the used vehicle becomes impaired as a result of a defect in a component or system of the vehicle's engine or drivetrain, the used vehicle dealer shall, with reasonable promptness, correct the defect or cause the defect to be corrected.
Sec. 6. 1. If an express written warranty is provided to a retail customer for a used vehicle pursuant to section 5 of this act, the duration of the warranty must be determined pursuant to this section. If, on the date the vehicle was purchased from the used vehicle dealer, the odometer in the used vehicle registered:
(a) At least 75,000 but less than 80,001 miles, the warranty is valid for a period of 30 days therefrom or until the odometer in the vehicle registers 1,000 miles more than on the date the vehicle was purchased from the used vehicle dealer, whichever occurs earlier.
(b) At least 80,001 but less than 85,001 miles, the warranty is valid for a period of 20 days therefrom or until the odometer in the vehicle registers 600 miles more than on the date the vehicle was purchased from the used vehicle dealer, whichever occurs earlier.
(c) At least 85,001 but less than 90,001 miles, the warranty is valid for a period of 10 days therefrom or until the odometer in the vehicle registers 300 miles more than on the date the vehicle was purchased from the used vehicle dealer, whichever occurs earlier.
(d) At least 90,001 but less than 100,001 miles, the warranty is valid for a period of 5 days therefrom or until the odometer in the vehicle registers 150 miles more than on the date the vehicle was purchased from the used vehicle dealer, whichever occurs earlier.
(e) At least 100,001 miles, the warranty is valid for a period of 2 days therefrom or until the odometer in the vehicle registers 100 miles more than on the date the vehicle was purchased from the used vehicle dealer, whichever occurs earlier.
The period for which a warranty is valid pursuant to this section must be tolled during any period in which the dealer has possession of the vehicle or the operation of the vehicle is impaired and the vehicle is inoperable due to a defect in the vehicle's engine or drivetrain.
2. As used in this section, "garage" has the meaning ascribed to it in NRS 597.480.
Sec. 7. 1. A retail customer who purchases a used vehicle the odometer of which registers 75,000 miles or more may submit to the department a written complaint regarding the used vehicle dealer. The department shall, within 10 days after it receives a complaint pursuant to this section, provide a copy of the complaint to the used vehicle dealer who is the subject of the complaint.
2. A complaint submitted pursuant to subsection 1 must include:
(a) A clear and concise statement of the complaint and the facts relating to the complaint;
(b) Copies of any documents relating to the complaint; and
(c) A statement of the manner in which the retail customer wishes to have the complaint resolved.
3. Upon receipt of a complaint pursuant to this section, the department shall investigate the complaint and determine whether the used vehicle dealer who is the subject of the complaint has violated the provisions of sections 3 to 10, inclusive, of this act or the regulations adopted by the department pursuant thereto.
4. If the department determines that a used vehicle dealer has violated the provisions of sections 3 to 10, inclusive, of this act or the regulations adopted by the department pursuant thereto, the department shall notify the used vehicle dealer of that determination and recommend to the dealer the actions that he may take to resolve the complaint.
5. A retail customer or used vehicle dealer who is aggrieved by the decision of the department may appeal the decision to the director.
Sec. 8. The department shall maintain a record of the complaints submitted to the department pursuant to section 7 of this act. The record must include a statement of whether the dealer was found to have violated the provisions of sections 3 to 10, inclusive, of this act or the regulations adopted pursuant thereto, and if so, whether the used vehicle dealer resolved the complaint in the manner recommended by the department or in any other manner acceptable to the department and the retail customer who filed the complaint.
Sec. 9. 1. If the department determines from the record maintained pursuant to section 8 of this act that on more than three occasions a used vehicle dealer has:
(a) Been found to have violated the provisions of section 3 to 10, inclusive, of this act or the regulations adopted pursuant thereto; and
(b) Failed to resolve those complaints in the manner recommended by the department pursuant to section 7 of this act or in any other manner acceptable to the department and the retail customer who filed the complaint,
the department may impose an administrative fine, not to exceed $2,500, for each additional violation of the provisions of sections 3 to 10, inclusive, of this act. The department shall afford to any person so fined an opportunity for a hearing pursuant to the provisions of NRS 233B.121.
2. All administrative fines collected by the department pursuant to subsection 1 must be deposited with the state treasurer to the credit of the account for regulation of used vehicle dealers, which is hereby created in the state highway fund. Money in the account may be used only for the administration of NRS 481.048 and sections 3 to 10, inclusive, of this act.
3. In addition to any other remedy provided by law, the department may compel compliance with sections 3 to 10, inclusive, of this act, and any regulation adopted pursuant thereto, by injunction or other appropriate remedy, and the department may institute and maintain in the name of the State of Nevada any such enforcement proceedings.
Sec. 10. The department may adopt regulations to carry out the provisions of sections 3 to 10, inclusive, of this act.
Sec. 11. NRS 41.600 is hereby amended to read as follows:
41.600 1. An action may be brought by any person who is a victim of consumer fraud.
2. As used in this section, "consumer fraud" means:
(a) An unlawful act as defined in NRS 119.330;
(b) An act prohibited by sections 3 to 10, inclusive, of this act;
(c) An act prohibited by NRS 482.351; or
[(c)] (d) A deceptive trade practice as defined in NRS 598.0915 to 598.0925, inclusive.
3. If the claimant is the prevailing party, the court shall award any damages that he has sustained.
4. Any action brought pursuant to this section is not an action upon any contract underlying the original transaction.
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