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

Versions

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

3. (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.