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PROPOSAL/EXECUTIVE SUMMARY: This bill
would create "the Computer Lemon Law." Computers that are found to
be defective within two years must be repaired, replaced or have the
costs refunded to consumers.
EXISTING LAW: This is a new act.
ANALYSIS: This bill would provide: (1)
rights to purchasers of defective computer devices; (2) protection
from warranty abuses; (3) effective warranty repairs; (4) certain
recordkeeping requirements; and (5) a right of action.
Purchasers protected are Pennsylvania
residents, students or businesses with less than 30 computer
workstations that lease, purchase or receive by gift a computer.
Computers include central processing units or terminal display
screens, all circuitry and connective devices, printers, modem,
scanners or other devices used with a computer. Purchasers shall
receive a statement of the purchasers' rights established by this
Act. The manufacturer must obtain a signed statement from the
purchaser that his rights have been explained and are understood;
time limits for various purchaser rights are extended if the
manufacturer delays in securing the signed statement. Also, the
manufacturer must disclose at the time of sale the name of all
software likely to cause operating problems; it is the manufacturer's
burden to prove such disclosures in any claim brought under this
Act.
During the first two years after purchase, the
purchaser is entitled to free repairs for any nonconformity. The
manufacturer must repair any computer and return it to the purchaser
within approximately five business days. Free repairs must be made
at the purchaser's location if provided for in the warranty.
Otherwise, the manufacturer must arrange and pay for the cost of
shipping. Repairs must be guaranteed for two years.
If the first repair is ineffective, the
manufacturer shall have a second chance to repair at the purchaser's
location so long as the repair is completed within three business
days. If the second repair is ineffective or not timely, the
purchaser may get a full refund or receive a new computer of equal or
greater value. If the computer has more than one nonconformity, no
second repair attempt is required to get the refund or new computer.
The manufacturer may request return of the unrepaired computer if it
has been refunded or replaced, but it may not be resold in
Pennsylvania. Any manufacturer who refuses to honor the terms of any
warranty entitles the purchaser to treble the purchase price.
Manufacturers must retain records of all
contacts with the purchaser and make copies upon request; related
violations entitle the purchaser to treble the purchase price. A
purchaser may initiate a civil action to seek recovery. Awards not
only Include refund or replacement, but may also entitle the
prevailing purchaser to $1,600-$6,000 depending on the judicial body
deciding the issue. The manufacturer must produce at every court
proceeding a corporate witness fully aware of the case and have
available a copy of all data. The manufacturer must pay reasonable
attorney fees, costs, and expert expenses if a purchaser has retained
legal counsel. A nonconformity caused by a software programming
problem is not a defense if: (1) software was preinstalled by the
manufacturer; (2) unless the manufacturer produces an expert who can
specify the cause and correction of the problem, and (3) unless the
manufacturer has strictly complied with the notice provisions of this
Act.
Purchasers seeking relief are not required to
retain an expert witness. Violations of this Act shall also be
violations of the Unfair Trade Practices and Consumer Protection Law.
The purchaser may not waive provisions of this Act.
EFFECTIVE DATE-The Act shall take effect
in 60 days.
PREPARED BY: Laura Jan Kuller. 783-3797
