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Second Session, Thirty-Ninth Legislature

This version is based on the printed bill that was distributed in the Legislature after First Reading.   It is not the official version.   If accuracy is critical, you can obtain a copy of the printed bill from Statutory Publications or view the online bilingual version (PDF).

Bill 222

THE BUSINESS PRACTICES AMENDMENT ACT (DISCLOSURE OF U.S. LEMON VEHICLES)


Explanatory Note

(Assented to                                         )

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

C.C.S.M. c. B120 amended

1           The Business Practices Act is amended by this Act.

2           The following is added after section 2:

Defective imported vehicles

2.1(1)      Without limiting clause 2(3)(a), in a consumer transaction respecting a motor vehicle, it is a material fact that the vehicle has been determined to be a lemon under a lemon law.

Notice and acknowledgment required

2.1(2)      A supplier who knows, or can reasonably be expected to know, that a motor vehicle has been determined to be a lemon under a lemon law must, before engaging in a consumer transaction respecting the vehicle,

(a) disclose the following to the consumer:

(i) that the vehicle was previously purchased or leased from a dealer in an American jurisdiction that had a lemon law,

(ii) that the vehicle had one or more defects that substantially impaired its use, value or safety,

(iii) that the vehicle's manufacturer, or the dealer, had all reasonable opportunity to fix those defects, but could not,

(iv) that because the defects could not be fixed, the lemon law required the manufacturer or dealer to take back the vehicle and refund the purchase price or lease payments,

(v) that the fact that the vehicle is now being offered for sale or lease in Manitoba is no assurance that those defects have been fixed; and

(b) obtain the consumer's signed acknowledgment that the information referred to in clause (a) has been disclosed to him or her.

Application

2.1(3)      A supplier who fails to comply with the requirements of this section commits an unfair business practice under section 2.

Definitions

2.1(4)      The following definitions apply in this section.

"lemon" means a motor vehicle that continues to have a defect that substantially impairs its use, value or safety. (« véhicule de piètre qualité »)

"lemon law" means a law of the federal government, or any state, of the United States

(a) that establishes criteria for determining if a motor vehicle is a lemon; and

(b) includes a requirement that, if a vehicle is determined to be a lemon, its manufacturer or dealer must take it back and refund the purchase price or lease payments. (« loi sur les véhicules de piètre qualité »)

Coming into force

3           This Act comes into force on the day it receives royal assent.

Explanatory Note

This Bill makes it explicit that a supplier commits an unfair business practice by selling or leasing a vehicle that has been determined to be a lemon under an American law without first disclosing that fact to the consumer.