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5th Session, 40th Legislature

This HTML version is provided for ease of use and is based on the bilingual version that was distributed in the Legislature after First Reading.

Bill 201

THE NEW MOTOR VEHICLE BUYERS' RIGHTS ACT


Table of Contents Bilingual version (PDF) Explanatory Note

(Assented to                                         )

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

DEFINITIONS AND APPLICATION

Definitions

1           The following definitions apply in this Act.

"authorized service agent" means a person authorized by a manufacturer to repair or service a motor vehicle on behalf of the manufacturer. (« représentant autorisé »)

"manufacturer" means a manufacturer of a motor vehicle that is the subject of a sale to which this Act applies. (« fabricant »)

"motor vehicle" means a motor vehicle, as defined in The Highway Traffic Act, that is purchased as a new motor vehicle. It does not include a motor vehicle that is purchased as a used motor vehicle. (« véhicule automobile »)

"non-conformity" means a defect or condition that substantially impairs the use, value or safety of a motor vehicle, but does not include a defect or condition resulting from

(a) an accident, or abuse or neglect of the vehicle, occurring after the purchaser purchased the vehicle; or

(b) a modification or alteration of the vehicle by a person other than a manufacturer or an authorized service agent. (« non-conformité »)

"purchase price" means, in respect of a purchase of a motor vehicle, the amount of money that is paid or is payable by the purchaser to the seller and includes an amount, if any, that the seller provides as an allowance for a trade-in vehicle. (« prix d'achat »)

"purchaser" means a person who purchases a motor vehicle at a retail sale. (« acheteur »)

"replacement motor vehicle" means, in relation to a motor vehicle being replaced, a motor vehicle made by the manufacturer of the motor vehicle being replaced that is the same model or a model of a comparable class or, if manufactured by a different manufacturer, a motor vehicle of a comparable class, that

(a) is of the same or a more recent model year as that of the motor vehicle being replaced; and

(b) is in a condition equivalent to, or better than, the condition of the motor vehicle being replaced at the time of the purchase of the motor vehicle being replaced. (« véhicule automobile de remplacement »)

"sale" means a retail transaction involving the sale of a single motor vehicle for the purchaser's use — whether for personal, family, household, business or other purposes — and not for resale purposes. (« vente »)

"seller" means a person who sells a motor vehicle at a retail sale. (« vendeur »)

"warranty" means the manufacturer's original warranty, or any affirmation of fact or promise made by a manufacturer, in respect of the manufactured quality or performance capability of a specific motor vehicle. (« garantie »)

"warranty period" means the time period during which coverage for a motor vehicle or a part of a motor vehicle is provided under a warranty, whether determined on the length of time since the purchase of the vehicle, kilometres travelled or other factors. (« période de garantie »)

Application

2           This Act applies to a motor vehicle sold in Manitoba after the coming into force of this Act.

INFORMATION TO BE PROVIDED BY THE SELLER

Seller to provide warranty, manual, list of agents, etc.

3           At the time of sale, a seller must provide to the purchaser

(a) a copy of any warranty that applies to the motor vehicle;

(b) an owner's manual published or distributed by the manufacturer of the motor vehicle;

(c) a clear and understandable written statement summarizing the rights of the purchaser under the warranty and under this Act;

(d) a clear and understandable written explanation of the procedure to be followed in making a claim under the warranty;

(e) a list of the names, addresses, telephone numbers and e-mail addresses of authorized service agents of the manufacturer in the province; and

(f) a toll-free telephone number and an e-mail address at which the manufacturer can be reached for the purpose of a warranty claim.

WARRANTY REPAIRS AND SERVICE

Warranty repairs

4(1)        If

(a) the quality or condition of a motor vehicle does not conform with a warranty issued in respect of the vehicle; and

(b) the non-conformity is reported during the warranty period by the purchaser to the manufacturer or an authorized service agent of the manufacturer;

the manufacturer or agent to whom the non-conformity is reported must, at no cost to the purchaser, repair or service the vehicle to bring its quality or condition into conformity with the warranty.

Warranty repair statement

4(2)        When returning a motor vehicle to the purchaser after the completion of repairs or service as required under subsection (1), a manufacturer or authorized service agent must provide to the purchaser an itemized and clearly legible statement that

(a) contains a general description of the problem as reported by the purchaser;

(b) indicates the odometer reading of the vehicle on the day it was delivered to the manufacturer or agent for repair or service;

(c) indicates the diagnosis made by the manufacturer or agent respecting the condition of the vehicle;

(d) lists the parts replaced or installed on the vehicle for purposes of the repair or service;

(e) describes the labour performed on the vehicle;

(f) indicates the dates on which the parts were replaced or installed, and on which the labour was performed;

(g) confirms that a test drive of the vehicle was performed after completion of the repairs or service and indicates the length of the test drive; and

(h) indicates the dates on which the diagnosis and repairs or service were completed.

Notice of claim by purchaser

5(1)        When, under a warranty, repairs or service to a motor vehicle are required four or more times in respect of the same non-conformity or a motor vehicle is out of service for 20 or more accumulated days due to repairs or service being performed in respect of the same non-conformity, the purchaser may give written notice of a claim under the warranty for the purpose of this section to the seller of the motor vehicle or to an authorized service agent of the manufacturer.

Notice delivered or mailed

5(2)        A notice under subsection (1) is to be served on the seller or agent by personal delivery of the notice to the business office of the seller or agent or by registered mail addressed to the business office of the seller or agent.

Seller to transmit claim

5(3)        A seller or agent under subsection (1) must, upon receipt of the notice, immediately inform the manufacturer of the claim.

Manufacturer has 10 days to respond

5(4)        A manufacturer must, not later than 10 days after being informed of the claim, provide the seller or agent with the name and address of a repair facility, reasonably accessible to the purchaser, where the purchaser may deliver the motor vehicle for necessary repairs or service under the warranty at no cost to the purchaser. The seller or agent must then immediately inform the purchaser of the name and address of the repair facility.

Final repair to be done in 10 days

5(5)        When a purchaser delivers a motor vehicle to a repair facility under subsection (4), the repairs or service required to restore the vehicle to a condition or quality that conforms with the warranty must be completed by the repair facility within 10 days of the day on which the vehicle is delivered to the facility.

No further repair by manufacturer

5(6)        If a repair facility under subsection (5) fails to complete the required repairs or service within 10 days after a motor vehicle is delivered to the facility, the manufacturer is in breach of the warranty issued in respect of the vehicle.

BREACH OF WARRANTY

Election by purchaser

6(1)        If a manufacturer is in breach of the warranty under subsection 5(6), the purchaser may

(a) demand return of the motor vehicle; or

(b) demand either

(i) a replacement motor vehicle of at least comparable value based on the purchase price of the motor vehicle less a reasonable offset for use of the motor vehicle by the purchaser, or

(ii) a refund of the purchase price of the motor vehicle and the retail sales tax and other taxes, fees and charges paid by the purchaser, less a reasonable offset for use of the motor vehicle by the purchaser.

Return if option not exercised

6(2)        Subject to subsection (5), a manufacturer under subsection (1) must comply with the demand of the purchaser within 10 days after receipt of the demand.

Repairs at manufacturer's expense

6(3)        If a manufacturer returns a motor vehicle to a purchaser under clause (1)(a), the purchaser may deliver the vehicle to a repair facility of the purchaser's choice and direct that repairs or service that has not been done to restore the vehicle to conformity with the warranty be done, and the manufacturer must reimburse the purchaser the cost, including the retail sales tax and other taxes, of the repairs or service done by the repair facility.

Calculation of "reasonable offset for use"

6(4)        For the purpose of clause (1)(b), a reasonable offset for use is an amount of money that is calculated by multiplying the number of kilometres that the motor vehicle was driven while in the purchaser's possession by the purchase price of the vehicle and dividing the product by 190,000.

Refund to pay charges and liens first

6(5)        If a purchaser elects to take a refund under subclause (1)(b)(ii), the manufacturer must first pay the refund, in whole or in part as the circumstances may require, to persons holding charges or liens against the motor vehicle. The remaining balance, if any, is then payable to the purchaser.

More favourable warranties

7           If this Act imposes a duty on a manufacturer that is less favourable to a purchaser than a duty undertaken by the manufacturer in a warranty of the manufacturer, the more favourable duty under the warranty applies and in all other respects the manufacturer is subject to this Act.

OFFENCES

Offence

8(1)        A person who contravenes a provision of this Act, other than section 3 or subsection 4(2), is guilty of an offence and liable on summary conviction to a fine of not more than $50,000.

Offence re providing information

8(2)        A person who contravenes section 3 or subsection 4(2) is guilty of an offence and is liable on summary conviction to a fine of $500.

Directors and officers of corporations

8(3)        If a corporation commits an offence under subsection (1) or (2), a director or officer of the corporation who authorized, permitted or acquiesced in the commission of the offence is also guilty of the offence and is liable on summary conviction to a fine of not more than $5,000, whether or not the corporation has been prosecuted or convicted.

C.C.S.M. REFERENCE AND COMING INTO FORCE

C.C.S.M. reference

9           This Act may be referred to as chapter N87 of the Continuing Consolidation of the Statutes of Manitoba.

Coming into force

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

Explanatory Note

This Bill enhances the rights of purchasers of new motor vehicles.

If a manufacturer or its authorized service agent is unable, within the time specified in the Bill, to satisfactorily repair a motor vehicle during the warranty period, the purchaser may demand that the vehicle be replaced or the purchase price refunded.

The Bill also contains provisions

  • requiring a seller of a motor vehicle to give the purchaser, at the time of purchase, documents that clearly outline the purchaser's rights under the vehicle's warranty and this Act; and
  • requiring a manufacturer or its authorized service agent to give the purchaser an itemized statement of work done whenever repair work or service is performed under the warranty.