SUMMARY--Revises provisions relating to sale of certain used vehicles. (BDR 52-745)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: No.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to motor vehicles; requiring a used vehicle dealer to conduct certain inspections on each used vehicle that he sells to a retail customer; requiring a used vehicle dealer to provide certain warranties for certain used vehicles that he sells to retail customers or alternatively to disclose certain defects in those vehicles; providing penalties; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1 Chapter 597 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 12, inclusive, of this act.
Sec. 2. As used in sections 2 to 12, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 3, 4 and 5 of this act have the meanings ascribed to them in those sections.
Sec. 3. "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. "Used vehicle" has the meaning ascribed to it in NRS 482.132.
Sec. 5. "Used vehicle dealer" has the meaning ascribed to it in NRS 482.133.
Sec. 6. Before a used vehicle dealer may sell a used vehicle to a retail customer, the used vehicle dealer must first conduct a reasonably thorough inspection of that vehicle, inspecting for soundness and safety the components and systems of the vehicle's engine and drivetrain.
Sec. 7. 1. Except as otherwise provided in section 8 of this act, a used vehicle dealer who sells to a retail customer a used vehicle, the odometer of which registers 75,000 miles or more, shall issue 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 9 of this act.
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. A used vehicle dealer who is required to correct a defect or cause a defect to be corrected pursuant to a warranty issued pursuant to subsection 1 shall correct the defect or cause the defect to be corrected at a charge to the retail customer who purchased the used vehicle not to exceed $25.
Sec. 8. Notwithstanding the provisions of section 7 of this act, a used vehicle dealer may sell to a retail customer a used vehicle, the odometer of which registers 75,000 miles or more, without an express written warranty if before completing the sale, the used vehicle dealer discloses to the retail customer in writing any defects in the components and systems of the vehicle's engine and drivetrain of which the used vehicle dealer knows or reasonably should know after conducting the inspection required pursuant to section 6 of this act.
Sec. 9. If an express written warranty is required for a used vehicle pursuant to section 7 of this act, the duration of such a 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:
1. 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.
2. 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.
3. 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.
4. 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.
5. 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 operation of the vehicle is impaired as a result of a defect in a component or system of the vehicle's engine or drivetrain.
Sec. 10. (Deleted by amendment.)
Sec. 11. 1. The department of motor vehicles and public safety may impose an administrative fine, not to exceed $2,500, for a violation of sections 6 to 9, inclusive, of this act, or any regulation adopted pursuant thereto. 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 6 to 9, inclusive, of this act.
3. In addition to any other remedy provided by law, the department may compel compliance with sections 6 to 9, 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. 12. The department of motor vehicles and public safety may adopt regulations to carry out the provisions of sections 2 to 11, inclusive, of this act.
Sec. 13. 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 6 to 9, 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.
Sec. 14. NRS 481.048 is hereby amended to read as follows:
481.048 1. There is hereby created, within the registration division of the department, the bureau of enforcement.
2. The director shall appoint, within the limits of legislative appropriations, investigators in the bureau of enforcement of the registration division of the department.
3. The duties of the investigators are to travel the state and:
(a) Act as investigators in the enforcement of the provisions of chapters 482 , [and] 487 and 597 of NRS, NRS 108.265 to 108.360, inclusive, and 108.440 to 108.500, inclusive, as those sections pertain to motor vehicles, trailers, motorcycles, recreational vehicles and semitrailers, as defined in chapter 482 of NRS.
(b) Act as adviser to dealers in connection with any problems arising under the provisions of that chapter.
(c) Cooperate with personnel of the Nevada highway patrol in the enforcement of the motor vehicle laws as they pertain to dealers.
(d) Perform such other duties as may be imposed by the director.